A Business at a Glance
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Sunstone Hotel Investors, Inc.
SHO
$2.4B
Mkt Cap
$11.74
+0.77%
Sunstone Hotel Investors, Inc. (SHO) has a current P/E ratio of 293.5, compared to its historical median P/E of 22.7. The stock is currently considered Expensive based on its historical valuation range.
Sunstone Hotel Investors, Inc. (SHO) has a 5-year average return on invested capital (ROIC) of 3.9%. This is below average and may indicate limited pricing power.
Sunstone Hotel Investors, Inc. (SHO) has a market capitalization of $2.2B. It is classified as a mid-cap stock.
Yes, Sunstone Hotel Investors, Inc. (SHO) pays a dividend with a trailing twelve-month yield of 3.92%. The company also returns capital through share buybacks, with a buyback yield of 5.64%.
Based on historical P/E analysis, Sunstone Hotel Investors, Inc. (SHO) appears expensive. The current P/E of 293.5 is 1194% above its historical median of 22.7. The estimated fair value CAGR (P/E method) is -22.3%.
Sunstone Hotel Investors, Inc. (SHO) operates in the Hotels & Motels industry, within the Consumer Cyclical sector.
Our Company We were incorporated in Maryland on June 28, 2004. We are a real estate investment trust (“REIT”), under the Internal Revenue Code of 1986, as amended (the “Code”). As of December 31, 2025, we owned 14 hotels, comprised of 6,999 rooms, located in 7 states and in Washington, DC. Our portfolio consists of upper upscale and luxury hotels located in convention, urban, and resort destinations. All of our hotels are operated under nationally recognized brands, except the Oceans Edge Resort & Marina, which operates independently. We own hotels in convention, urban, and resort destinations that benefit from significant barriers to entry by competitors and diverse economic drivers. Our mission is to be the premier stewards of capital in the lodging industry, providing superior returns to our stockholders by investing in hotels where we can add value through capital investment, hotel repositioning, and asset management.
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 986M | 960M | 906M | 986M | 912M | 509M |
| Net Income | 23M | 8.2M | 28M | 192M | 73M | 14M |
| EPS | $0.12 | $0.04 | $0.14 | $0.93 | $0.34 | $0.06 |
| Free Cash Flow | 178M | 79M | 13M | 88M | 81M | -35M |
| ROIC | 0.0% | 2.2% | 2.8% | 9.1% | 3.8% | 1.7% |
| Gross Margin | - | - | - | - | - | - |
| Debt/Equity | 0.50 | 0.48 | 0.40 | 0.38 | 0.40 | 0.29 |
| Dividends/Share | $0.46 | $0.36 | $0.34 | $0.30 | $0.10 | $0.06 |
| Operating Income | 0 | 61M | 77M | 248M | 105M | 45M |
| Operating Margin | 0.0% | 6.4% | 8.5% | 25.1% | 11.5% | 8.8% |
| ROE | 1.2% | 0.4% | 1.3% | 9.0% | 3.4% | 0.6% |
| Shares Outstanding | 187M | 205M | 198M | 206M | 214M | 226M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 812M | 874M | 1.2B | 1.2B | 1.2B | 1.1B | 268M | 509M | 912M | 986M | 906M | 960M | 986M |
| Gross Margin | 73.5% | 74.4% | 34.4% | 31.9% | 41.9% | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| R&D | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A | 29M | 33M | 26M | 29M | 30M | 30M | 28M | 40M | 35M | 31M | 29M | 32M | 30M |
| EBIT | 157M | 180M | 189M | 186M | 299M | 176M | -358M | 45M | 105M | 248M | 77M | 61M | 0 |
| Op. Margin | 19.3% | 20.6% | 15.9% | 15.6% | 25.8% | 15.8% | -133.5% | 8.8% | 11.5% | 25.1% | 8.5% | 6.4% | 0.0% |
| Net Income | 72M | 356M | 117M | 132M | 236M | 122M | -418M | 14M | 73M | 192M | 28M | 8.2M | 23M |
| Net Margin | 8.9% | 40.7% | 9.9% | 11.0% | 20.4% | 10.9% | -155.9% | 2.7% | 8.0% | 19.4% | 3.1% | 0.9% | 2.3% |
| Non-Recurring | 0 | 0 | 18M | 93M | 118M | 68M | 181M | 155M | 26M | 124M | 457K | -8.8M | -8.8M |
| Returns on Capital | |||||||||||||
| ROIC | 4.7% | 7.2% | 6.3% | 6.1% | 10.1% | 6.3% | -13.4% | 1.7% | 3.8% | 9.1% | 2.8% | 2.2% | 0.0% |
| ROE | 3.2% | 15.5% | 4.9% | 5.3% | 9.1% | 4.7% | -18.1% | 0.6% | 3.4% | 9.0% | 1.3% | 0.4% | 1.2% |
| ROA | 1.8% | 9.2% | 3.1% | 3.5% | 6.0% | 3.1% | -12.1% | 0.5% | 2.4% | 6.2% | 0.9% | 0.3% | 0.8% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | 279M | 309M | 288M | 307M | 305M | 291M | -117M | 28M | 209M | 198M | 170M | 182M | 195M |
| Free Cash Flow | 153M | 145M | 106M | 192M | 146M | 195M | -168M | -35M | 81M | 88M | 13M | 79M | 178M |
| Owner Earnings | 112M | 133M | 118M | 140M | 150M | 134M | -263M | -113M | 72M | 60M | 35M | 39M | 50M |
| CapEx | 126M | 164M | 182M | 115M | 159M | 96M | 51M | 64M | 129M | 110M | 157M | 103M | 18M |
| Maint. CapEx | 160M | 167M | 163M | 159M | 146M | 148M | 137M | 129M | 126M | 127M | 125M | 135M | 136M |
| Growth CapEx | 0 | 0 | 19M | 0 | 13M | 0 | 0 | 0 | 2.2M | 0 | 33M | 0 | 0 |
| D&A | 160M | 167M | 163M | 159M | 146M | 148M | 137M | 129M | 126M | 127M | 125M | 135M | 136M |
| CapEx/OCF | 3.1% | 2.7% | 2.1% | 1.0% | 3.5% | 3.4% | N/A | 30.1% | 4.6% | 5.0% | 9.8% | 13.3% | 9.1% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 48M | 78M | 227M | 163M | 178M | 170M | 156M | 14M | 25M | 60M | 91M | 86M | 86M |
| Dividend Yield | 2.7% | 3.5% | 11.1% | 6.1% | 6.2% | 6.4% | 8.5% | 0.6% | 1.2% | 3.2% | 4.6% | 4.6% | 3.9% |
| Share Buybacks | 0 | 0 | 0 | 0 | 0 | 50M | 104M | 0 | 108M | 56M | 27M | 103M | 124M |
| Buyback Yield | N/A | N/A | N/A | N/A | N/A | 1.5% | 4.8% | N/A | 4.7% | 2.5% | 0.8% | 6.0% | 5.6% |
| Stock-Based Comp | 6.2M | 9.7M | 7.2M | 8.0M | 9.0M | 9.3M | 9.6M | 13M | 11M | 11M | 10M | 8.7M | 8.5M |
| Debt Repayment | 4.1M | 451M | 266M | 406M | 73M | 8.0M | 150M | 80M | 39M | 222M | 74M | 65M | 65M |
| Balance Sheet | |||||||||||||
| Net Debt | 1.1B | 184M | 566M | 496M | 171M | 211M | 416M | 522M | 736M | 392M | 736M | 817M | 858M |
| Cash & Equiv. | 222M | 499M | 370M | 488M | 809M | 817M | 368M | 120M | 101M | 426M | 107M | 109M | 91M |
| Long-Term Debt | 1.3B | 1.0B | 746M | 977M | 971M | 889M | 743M | 589M | 591M | 815M | 841M | 918M | 943M |
| Debt/Equity | 0.70 | 0.51 | 0.38 | 0.39 | 0.37 | 0.40 | 0.38 | 0.29 | 0.40 | 0.38 | 0.40 | 0.48 | 0.50 |
| Interest Coverage | 2.2 | 2.7 | 3.8 | 3.6 | 6.3 | 3.2 | -6.7 | 1.4 | 3.3 | 4.8 | 1.5 | 1.2 | 1.2 |
| Equity | 2.2B | 2.3B | 2.5B | 2.5B | 2.7B | 2.6B | 2.0B | 2.2B | 2.1B | 2.2B | 2.1B | 1.9B | 1.9B |
| Total Assets | 3.9B | 3.9B | 3.7B | 3.9B | 4.0B | 3.9B | 3.0B | 3.0B | 3.1B | 3.1B | 3.1B | 3.0B | 3.0B |
| Total Liabilities | 1.6B | 1.5B | 1.2B | 1.3B | 1.3B | 1.3B | 896M | 801M | 998M | 983M | 1.0B | 1.1B | 1.1B |
| Intangibles | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Retained Earnings | 306M | 653M | 787M | 932M | 1.2B | 1.3B | 914M | 948M | 1.0B | N/A | N/A | N/A | N/A |
| Working Capital | 57M | 168M | 159M | 486M | 676M | 588M | 344M | 106M | -167M | N/A | N/A | N/A | N/A |
| Current Assets | 355M | 620M | 568M | 728M | 908M | 914M | 435M | 282M | 214M | N/A | N/A | N/A | N/A |
| Current Liabilities | 297M | 451M | 409M | 243M | 233M | 326M | 91M | 176M | 381M | N/A | N/A | N/A | 7.3M |
| Per Share Data | |||||||||||||
| EPS | 0.37 | 1.62 | 0.55 | 0.60 | 1.05 | 0.54 | -1.93 | 0.06 | 0.34 | 0.93 | 0.14 | 0.04 | 0.12 |
| Owner EPS | 0.58 | 0.60 | 0.55 | 0.64 | 0.67 | 0.59 | -1.22 | -0.50 | 0.34 | 0.29 | 0.18 | 0.19 | 0.27 |
| Book Value | 11.39 | 10.48 | 11.62 | 11.54 | 11.83 | 11.40 | 9.47 | 9.72 | 9.77 | 10.51 | 10.61 | 9.47 | 10.19 |
| Cash Flow/Share | 1.43 | 1.41 | 1.35 | 1.40 | 1.36 | 1.29 | -0.54 | 0.13 | 0.98 | 0.96 | 0.86 | 0.89 | 0.85 |
| Dividends/Share | 0.51 | 1.41 | 1.07 | 0.73 | 0.69 | 0.74 | 0.72 | 0.06 | 0.10 | 0.30 | 0.34 | 0.36 | 0.46 |
| Shares Out. | 194.7M | 219.5M | 213.6M | 219.5M | 225.1M | 225.9M | 216.4M | 226.1M | 213.5M | 206.2M | 198.3M | 205.3M | 187.0M |
| Valuation | |||||||||||||
| P/E Ratio | 29.9 | 5.7 | 21.2 | 22.8 | 10.5 | 22.7 | N/A | 174.4 | 25.2 | 10.9 | 81.7 | 225.7 | 96.6 |
| P/FCF | 14.1 | 13.9 | 23.6 | 15.4 | 16.9 | 14.2 | N/A | N/A | 22.6 | 23.7 | 174.4 | 23.5 | 12.4 |
| EV/EBIT | 20.8 | 12.2 | 19.7 | 18.8 | 6.7 | 160.6 | N/A | 40.1 | 595.0 | 209.7 | 315.6 | 219.9 | N/A |
| Price/Book | 1.0 | 0.9 | 1.2 | 1.4 | 1.0 | 1.3 | 1.1 | 1.0 | 1.1 | 1.0 | 1.7 | 0.9 | 1.2 |
| Price/Sales | 2.2 | 2.6 | 3.0 | 2.6 | 2.7 | 2.8 | 6.7 | 4.4 | 2.9 | 2.0 | 3.4 | 1.8 | 2.2 |
| FCF Yield | 7.1% | 7.2% | 3.5% | 5.5% | 5.4% | 6.0% | -7.7% | -1.6% | 3.5% | 3.9% | 0.4% | 4.6% | 8.1% |
| Market Cap | 2.2B | 2.0B | 3.0B | 3.5B | 2.7B | 3.2B | 2.2B | 2.2B | 2.3B | 2.2B | 3.5B | 1.7B | 2.2B |
| Avg. Price | 9.24 | 10.19 | 9.56 | 12.17 | 12.75 | 11.84 | 8.45 | 10.80 | 9.86 | 8.98 | 9.98 | 9.23 | 11.74 |
| Year-End Price | 11.07 | 9.19 | 11.64 | 13.44 | 10.98 | 12.25 | 10.22 | 10.47 | 8.57 | 10.11 | 11.43 | 9.03 | 11.74 |
Sunstone Hotel Investors, Inc. passes 1 of 9 quality checks, indicating weak fundamentals.
Sunstone Hotel Investors, Inc. trades at 293.5x trailing earnings, compared to its 15-year median P/E of 22.7x, suggesting it is currently Expensive relative to its historical range. On a free-cash-flow basis, the stock trades at 14.1x vs a median of 22.6x. The company's 5-year average ROIC is 3.9%. Total shareholder yield (dividends + buybacks) is 9.6%. At current prices, the estimated annualized return to fair value is +3.3%.
Sunstone Hotel Investors, Inc. (SHO) reported annual revenue of $960 million in its most recent fiscal year, based on SEC EDGAR filings.
Sunstone Hotel Investors, Inc. (SHO) has a net profit margin of 0.9%. This is a modest margin.
Sunstone Hotel Investors, Inc. (SHO) generated $79 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
Sunstone Hotel Investors, Inc. (SHO) has a debt-to-equity ratio of 0.48. This indicates a conservatively financed balance sheet.
Sunstone Hotel Investors, Inc. (SHO) reported earnings per share (EPS) of $0.04 in its most recent fiscal year.
Sunstone Hotel Investors, Inc. (SHO) has a return on equity (ROE) of 0.4%. This indicates moderate shareholder returns.
The Ledger Terminal provides 16 years of financial data for Sunstone Hotel Investors, Inc. (SHO), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
Sunstone Hotel Investors, Inc. (SHO) has a book value per share of $9.47, based on its most recent annual SEC filing.