Sunstone Hotel Investors (NYSE:SHO) (NYSE:SHO) is a publicly traded real estate investment trust (REIT) specializing in the ownership and operation of upper-upscale hotel properties. Headquartered in Irvine, California, Sunstone focuses on investing in premium-branded assets managed by leading hospitality companies. The company pursues a strategy of acquiring, developing and occasionally disposing of hotel properties to optimize its portfolio, seeking high-quality cash flow and long-term capital appreciation for its shareholders.
The company’s portfolio encompasses a diverse mix of upper-upscale brands, including Marriott, Hilton, Hyatt and other leading chains. These properties span major U.S. markets such as New York, Boston, Washington, D.C., Los Angeles, Chicago and Miami, as well as key resort destinations. Sunstone’s investments range from full-service city hotels to resort properties, with revenue streams generated through room rentals, food and beverage outlets, meeting and event spaces, and other ancillary services like spas and parking.
Sunstone employs a proactive asset management approach, combining disciplined acquisitions with selective dispositions to recycle capital into higher-return opportunities. The company maintains close relationships with third-party hotel operators under long-term management agreements, while leveraging its in-house team to oversee property performance and execute value-enhancing initiatives. Its strategic focus on upper-upscale, fee-simple ownership seeks to mitigate volatility and deliver stable distributions.
Founded in the early 1990s, Sunstone Hotel Investors has grown through steady portfolio expansion and a history of targeted transactions. The company completed an internalization of its management platform to gain greater operational control and align incentives with its stakeholders. Under the leadership of President and Chief Executive Officer Scott H. Sturm, Sunstone emphasizes disciplined capital allocation, portfolio diversification and strong governance. The firm’s board and management team bring extensive experience in hospitality real estate, supporting its objective to build a high-quality, resilient hotel REIT.
