Sunstone Hotel Investors (SHO) Stock Overview
A lodging real estate investment trust (REIT). More details
| Snowflake Score | |
|---|---|
| Valuation | 1/6 |
| Future Growth | 3/6 |
| Past Performance | 3/6 |
| Financial Health | 2/6 |
| Dividends | 4/6 |
Rewards
Risk Analysis
SHO Community Fair Values
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Analyst Price Targets
Sunstone Hotel Investors, Inc. Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$11.22 |
| 52 Week High | US$12.07 |
| 52 Week Low | US$8.48 |
| Beta | 0.98 |
| 1 Month Change | -1.84% |
| 3 Month Change | 17.49% |
| 1 Year Change | 23.16% |
| 3 Year Change | 12.42% |
| 5 Year Change | -1.67% |
| Change since IPO | -34.00% |
Recent News & Updates
Recent updates
Seeking Alpha • Jun 30
Sunstone Hotel Investors: A Quality Portfolio, But The Yield Does Not Compensate For The Risk
Summary Sunstone Hotel Investors holds ~$3B in total assets, ~$950M in debt, and ~$986M in revenue; a portfolio of 14 hotels (~7,000 rooms). Common stock trades at a premium (P/B of 1.33) with a forward AFFO yield of only ~6.1%. Strong balance sheet: asset coverage ratio ~317% (market-adjusted ~383%), with zero secured debt. Preferreds offer a current yield of roughly 6.7–7.0% but carry a sub-investment-grade rating (~Ba1). Read the full article on Seeking Alpha
Narrative Update • Jun 17
SHO: Future View Will Center On Rich 2026 Earnings Despite Stretched Multiple
Analysts have slightly adjusted their price target for Sunstone Hotel Investors to reflect updated views on fair value, discount rate, revenue growth, profit margin, and future P/E assumptions, with the revised target now framed around these refreshed inputs in dollar terms. What’s in the News for Sunstone Hotel Investors Sunstone Hotel Investors stock recently reached a new 52 week high, supported by strong recent price momentum and a Zacks Momentum Style Score of A.Narrative Update • Jun 01
SHO: Future View Will Center On Rich 2026 Earnings Versus Modest Buybacks
Analysts have reduced their price target on Sunstone Hotel Investors to $9.00, reflecting updated views on the company’s fair value, discount rate, revenue growth, profit margin, and future P/E assumptions. What's in the News From January 1, 2026 to May 5, 2026, Sunstone Hotel Investors repurchased 3,860,813 shares, representing 2.04% of its shares, for a total of US$35.24 million under its ongoing buyback program.Narrative Update • May 04
SHO: Future View Will Center On 2026 Earnings Range And Ongoing Buybacks
Analysts have raised their price target on Sunstone Hotel Investors to $9.02 per share from $9.02, citing updated assumptions around the discount rate, revenue growth, profit margin, and future P/E that slightly adjust the risk and earnings profile they are modeling. What's in the News From October 1, 2025 to December 31, 2025, the company repurchased 207,991 shares, representing 0.11% of its stock for $1.86 million under its ongoing buyback program announced on February 21, 2017 (Key Developments).Narrative Update • Apr 17
SHO: Future View Will Emphasize 2026 Earnings Guidance And Expanded Buybacks
Analysts have adjusted their price target on Sunstone Hotel Investors to reflect updated assumptions around the discount rate, revenue growth, profit margins, and future P/E. The revised view is framed as a higher-quality earnings outlook rather than a major shift in the expected upside for the shares from around $9.02 previously.Narrative Update • Apr 01
SHO: Future View Will Center On 2026 Earnings And Buyback Capacity
Analysts have nudged their Sunstone Hotel Investors price target slightly higher to $9.02 from $9.00, reflecting updated assumptions for fair value, discount rate, revenue growth, profit margin and future P/E. Together, these updates point to a modestly refined outlook rather than a major shift in view.Narrative Update • Mar 18
SHO: Future View Will Highlight 2026 Earnings Range And Margin Assumptions
Analysts have slightly adjusted their price target for Sunstone Hotel Investors to $9.00, reflecting updated assumptions around the discount rate, revenue growth, profit margin, and future P/E, without changing the overall fair value estimate. What's in the News Sunstone Hotel Investors issued earnings guidance for the year ending December 31, 2026, and expects net income in a range of $21 million to $46 million (company guidance).Narrative Update • Mar 03
SHO: Future View Will Emphasize Conservative Earnings Outlook And Margin Assumptions
Analysts have slightly adjusted their price target on Sunstone Hotel Investors, citing updated assumptions for the discount rate, revenue growth of 3.50%, a profit margin of 4.64%, and a future P/E of 37.65x as key drivers behind their revised view. What's in the News Sunstone Hotel Investors issued earnings guidance for the year ending December 31, 2026, with expected net income in a range of $21 million to $46 million (company guidance).Narrative Update • Feb 17
SHO: Future View Will Emphasize Stable Earnings Outlook And Margin Refinements
Analysts have slightly adjusted their $9.00 price target for Sunstone Hotel Investors, citing updated assumptions around discount rates, revenue growth, profit margins, and future P/E that together refine their view of the stock's risk and return profile. Valuation Changes Fair Value: The indicated fair value remains steady at $9.00 per share, with no change from the prior estimate.Narrative Update • Feb 03
SHO: Future View Will Highlight Buybacks Stable Earnings Outlook And Margin Refinements
Analysts have modestly adjusted their price target for Sunstone Hotel Investors to reflect updated assumptions around discount rates, revenue growth, profit margins, and future P/E. These valuation inputs now point to a fair value of about US$9.00 per share.Narrative Update • Jan 20
SHO: Fair View Will Emphasize Buybacks Stable Guidance And Margin Reassessment
Analysts have nudged their price target on Sunstone Hotel Investors higher to US$9.00, with the update framed by adjustments to the discount rate, revenue growth, profit margin, and future P/E assumptions. What's in the News From July 1, 2025 to November 7, 2025, Sunstone Hotel Investors repurchased 270,015 shares for US$3.25 million, representing 0.14% of its shares under the existing buyback program (Key Developments).Narrative Update • Jan 05
SHO: Fair View Will Highlight Stable Guidance And Refined Profit Expectations
Analysts have adjusted their price target for Sunstone Hotel Investors to reflect updated assumptions around discount rate, revenue growth, profit margin, and future P/E. The change is framed as a refinement of fair value rather than a shift in thesis.Narrative Update • Dec 15
SHO: Updated Outlook Will Emphasize Higher Profit Margins And Stable Earnings Guidance
Analysts have raised their price target on Sunstone Hotel Investors by approximately 12 percent to about 9 dollars per share, citing modestly stronger expectations for revenue growth and profit margins. These factors more than offset a lower anticipated future price to earnings multiple and a slightly higher discount rate.Seeking Alpha • Mar 03
Credit Scoring Of Sunstone Hotel Investors Confirms Our Purchase Of The Preferred Shares
Summary Sunstone Hotel Investors received a Baa2 to Baa3 equivalent credit score, reflecting its financial strength despite operating in the riskier hotel industry. SHO's balance sheet metrics are comparable to high-rated REIT Agree Realty, but SHO offers a 1.3% higher yield on preferred shares. Moody's rates SHO lower due to the hotel industry's perceived higher risk and cyclical nature, despite stable revenue and operating expenses. We're willing to accept the associated risks of SHO's preferred shares, believing in the potential to generate alpha from this investment. Read the full article on Seeking AlphaSeeking Alpha • Feb 21
SHO: The Preferred Stocks' 7.3% Yield Outshines The FFO Yield
Summary Sunstone Hotel Investors Inc. (SHO) is a relatively safe Hotel REIT due to its strong financials, including a 400% asset coverage ratio and no secured debt. SHO's preferred stocks offer a 7.3% yield, outperforming common stock's expected 8% FFO yield, making them a better risk-adjusted investment. SHO's preferred stocks have narrowed their spread to the 20-year Treasury, suggesting potential for higher credit ratings and narrower spreads in the future. For income-focused investors, SHO's preferred stocks are currently more attractive than common stock, given their stable yield and strong financial backing. Read the full article on Seeking AlphaSeeking Alpha • Oct 28
Sunstone Hotel Investors: 6.74% Preferred Shares Are Losing Appeal
Summary Sunstone Hotel Investors' preferred shares are attractive due to a robust balance sheet and excellent dividend coverage, despite a recent AFFO guidance reduction. The preferred dividends are well-covered, with less than 10% of adjusted AFFO needed, ensuring financial stability even with seasonality impacts. Series H preferred shares offer a higher current yield (6.74%) compared to Series I (6.65%), making them slightly more attractive, though both are 'hold' at best. I sold my Sunstone preferred shares as the after-tax yield fell below my threshold, but investors with lower tax rates may still find them appealing. Read the full article on Seeking Alpha
New Narrative • Sep 11
Renovations And Decisive Investments Propel Growth, Despite Looming Market Risks And Analyst Concerns
Strategic acquisitions and renovations have significantly improved revenue potential and guest experiences, suggesting positive impacts on RevPAR and margins.Seeking Alpha • Jul 04
Sunstone Hotel: Better Wait For A Better Price
Summary Sunstone manages a high-quality hotel portfolio located in coastal markets. It has good growth prospects and very low leverage, but also a low dividend yield. The valuation is not very attractive, which presents a significant risk for investors. Read the full article on Seeking AlphaSeeking Alpha • Jun 08
Sunstone Hotel Investors: 7.2%-Yielding Preferred Shares Offer Great Risk/Reward
Summary The Sunstone Hotel Investors, Inc. preferred share price of the Series H has come down from a Q1 spike. Sunstone Hotel Investors reported a net income of $13M in Q1, with a decrease in AFFO per share compared to previous years. Sunstone's redevelopment plan and capital expenditures may cause short-term pain but are expected to result in long-term gains. The anticipated preferred dividend payout ratio is just under 8%. Read the full article on Seeking AlphaShareholder Returns
| SHO | US Hotel and Resort REITs | US Market | |
|---|---|---|---|
| 7D | -1.4% | -1.5% | 0.6% |
| 1Y | 23.2% | 34.4% | 19.5% |
Return vs Industry: SHO underperformed the US Hotel and Resort REITs industry which returned 34.4% over the past year.
Return vs Market: SHO exceeded the US Market which returned 19.5% over the past year.
Price Volatility
| SHO volatility | |
|---|---|
| SHO Average Weekly Movement | 3.2% |
| Hotel and Resort REITs Industry Average Movement | 3.9% |
| Market Average Movement | 7.3% |
| 10% most volatile stocks in US Market | 16.7% |
| 10% least volatile stocks in US Market | 3.2% |
Stable Share Price: SHO has not had significant price volatility in the past 3 months compared to the US market.
Volatility Over Time: SHO's weekly volatility (3%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1995 | 37 | Bryan Giglia | www.sunstonehotels.com |
Sunstone Hotel Investors, Inc. is a lodging real estate investment trust (REIT). 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. Sunstone Hotel Investors, Inc. was incorporated in 1995 and is based in Aliso Viejo, United States.
Sunstone Hotel Investors, Inc. Fundamentals Summary
| SHO fundamental statistics | |
|---|---|
| Market cap | US$2.09b |
| Earnings (TTM) | US$22.83m |
| Revenue (TTM) | US$985.77m |
91.6x
P/E Ratio2.1x
P/S RatioIs SHO overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| SHO income statement (TTM) | |
|---|---|
| Revenue | US$985.77m |
| Cost of Revenue | US$556.93m |
| Gross Profit | US$428.84m |
| Other Expenses | US$406.01m |
| Earnings | US$22.83m |
Last Reported Earnings
Mar 31, 2026
Next Earnings Date
Aug 06, 2026
| Earnings per share (EPS) | 0.12 |
| Gross Margin | 43.50% |
| Net Profit Margin | 2.32% |
| Debt/Equity Ratio | 49.5% |
How did SHO perform over the long term?
See historical performance and comparisonDividends
3.2%
Current Dividend Yield57%
Payout RatioDoes SHO pay a reliable dividends?
See SHO dividend history and benchmarks| Sunstone Hotel Investors dividend dates | |
|---|---|
| Ex Dividend Date | Jun 30 2026 |
| Dividend Pay Date | Jul 15 2026 |
| Days until Ex dividend | 11 days |
| Days until Dividend pay date | 4 days |
Does SHO pay a reliable dividends?
See SHO dividend history and benchmarksCompany Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2026/07/10 22:01 |
| End of Day Share Price | 2026/07/10 00:00 |
| Earnings | 2026/03/31 |
| Annual Earnings | 2025/12/31 |
Data Sources
The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.
| Package | Data | Timeframe | Example US Source * |
|---|---|---|---|
| Company Financials | 10 years |
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| Analyst Consensus Estimates | +3 years |
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| Market Prices | 30 years |
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| Ownership | 10 years |
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| Management | 10 years |
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| Key Developments | 10 years |
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* Example for US securities, for non-US equivalent regulatory forms and sources are used.
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.
Analysis Model and Snowflake
Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.
Learn about the world class team who designed and built the Simply Wall St analysis model.
Industry and Sector Metrics
Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.
Analyst Sources
Sunstone Hotel Investors, Inc. is covered by 28 analysts. 9 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.
| Analyst | Institution |
|---|---|
| Michael Bellisario | Baird |
| Felicia Kantor Hendrix | Barclays |
| Dany Asad | BofA Global Research |