# Sunstone Hotel Investors, Inc. (SHO)

> Source: Nexqual · https://nexqual.com/SHO · data as of 2026-10-22 20:00 UTC · cite as "Nexqual, Sunstone Hotel Investors, Inc. (SHO), nexqual.com/SHO" · informational, not investment advice.

**Price:** USD 12.6 (-0.08% on the day) · last close of Oct 22, 2026; US market pre market, not a live price. Prev close 12.61 · day 12.45–12.75 · 52w 8.69–12.78 · market cap $2.34B · NYQ

## Key facts
- Last four reported quarters (through Jun 30, 2026): revenue $1.00B, net income $53.1M (5.3% margin), free cash flow $98.1M (SEC filings).
- Valuation: P/E 44.1x (avg 45.6x at the last 3 fiscal year-ends), net debt $874M.
- 1 of 80 tracked superinvestors hold SHO (13F, Q2 2026): 0 new, 0 added, 1 reduced, 0 unchanged.
- Insider open-market sales, last ~7 months: 1 Form 4 filings, $1.0M; 1 not under a Rule 10b5-1 plan ($1.0M); 0 by opportunistic insiders, 0 by routine insiders (three-year test, Cohen, Malloy & Pomorski 2012).
- Analysts: Hold (mean 2.83 on a 1–5 scale) (12 analysts), mean target USD 12.04 (range 10–13).
- Total return with dividends: 1Y +42.9% vs S&P 500 +14.9%; 5Y +18.2% vs S&P 500 +80.3%.
- Next earnings: 2026-11-06, EPS estimate USD -0.02, revenue estimate $225M.

## Financials (SEC 10-K; TTM = last four 10-Q/10-K quarters)
| USD | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | TTM |
|---|---|---|---|---|---|---|
| Revenue | $509M | $912M | $986M | $906M | $960M | $1.00B |
| Net income | $33.0M | $90.8M | $207M | $43.3M | $24.6M | $53.1M |
| EPS (diluted) | $0.06 | $0.34 | $0.93 | $0.14 | $0.04 | — |
| Free cash flow | -$35.3M | $80.8M | $88.0M | $13.0M | $78.7M | $98.1M |
| Net margin | 6.5% | 10.0% | 21.0% | 4.8% | 2.6% | 5.3% |
| Revenue growth | +90.0% | +79.1% | +8.2% | -8.2% | +6.0% | — |
| Cash + short-term investments | $120M | $101M | $426M | $107M | $109M | — |
| Total debt | $611M | $813M | $815M | $841M | $918M | — |
Fiscal years end Dec. EPS is split-adjusted.

## Valuation (price ÷ last four quarters, through Jun 30, 2026)
P/E 44.1x · P/S 2.3x · EV/Sales 3.2x · P/FCF 23.9x · P/B 1.3x · FCF yield 4.19% · Earnings yield 2.27% · Dividend yield (paid, TTM) 3.61% · Buyback yield (TTM) 1.91% · Net debt $874M · EV $3.22B
P/E at fiscal year-ends: Dec 2025 70.7x, Dec 2024 55.5x, Dec 2023 10.7x.

## Superinvestors (SEC 13F-HR, Q2 2026)
1 of 80 tracked investors hold SHO. Each row is the investor's latest 13F; change is vs their prior-quarter share count.
| Investor | Firm | % of portfolio | Value | Change |
|---|---|---|---|---|
| Christopher Davis | Davis Advisors | 0.04% | $10.0M | Reduced -2.2% |

## Insider sales (SEC Form 4, open-market, last ~7 months)
0 of 1 under a Rule 10b5-1 trading plan (scheduled in advance). Unplanned sales were timed by the insider.
| Trade date | Insider | Role | Shares | Value | % of holdings sold | 10b5-1 plan | Insider type |
|---|---|---|---|---|---|---|---|
| 2026-06-24 | Springer Robert C | PRESIDENT AND CIO | 89,631 | $1.0M | 13.5% | No | Too little history (no open-market trades in 2023–2025) |
% of holdings sold = shares sold ÷ (shares sold + all holdings the insider reported on that Form 4, direct and through trusts).
Insider type follows Cohen, Malloy & Pomorski (Journal of Finance, 2012). An insider who traded the stock in the same calendar month in each of the past three years is a routine trader; one who traded in each of those years without such a pattern is an opportunistic trader. In their study, trades by opportunistic insiders predicted future returns and trades by routine insiders did not. Counts open-market purchases and sales only (SEC Form 4 codes P and S) by that insider in that company. Not investment advice.

## Analysts
Consensus Hold (mean 2.83 on a 1–5 scale), 12 analysts; mean target USD 12.04 (low 10, high 13).
Rating changes, last 120 days:
| Date | Firm | Action | Rating | Price target |
|---|---|---|---|---|
| 2026-10-21 | JP Morgan | Target raised | Underweight | $10 → $11 |
| 2026-09-10 | Truist Securities | Target raised | Hold | $11 → $13 |
| 2026-07-28 | Evercore ISI Group | Target raised | Outperform | $12 → $13 |
| 2026-07-21 | JP Morgan | Target raised | Underweight | $9 → $10 |

## Total return (dividends reinvested)
|  | 1Y (from 2025-10-23) | 5Y (from 2021-10-18) |
|---|---|---|
| Total return | +42.9% | +18.2% |
| S&P 500 (SPY) | +14.9% | +80.3% |
| Per year | +43.0% | +3.4% |
| Volatility (annualized) | 22.7% | 28.0% |
| Max drawdown | -10.6% (Nov 2025→Feb 2026) | -33.1% (Nov 2021→Aug 2023) |

## Peers (REIT - Hotel & Motel)
PEB (Pebblebrook Hotel Trust) USD 20.67 -2.04% · XHR (Xenia Hotels & Resorts, Inc.) USD 19.5 -0.66% · DRH (Diamondrock Hospitality Company) USD 13.89 -0.39% · RLJ (RLJ Lodging Trust) USD 12.14 -1.30% · PK (Park Hotels & Resorts Inc.) USD 16.66 -1.94% · APLE (Apple Hospitality REIT, Inc.) USD 18.16 +0.06%

## More
Full page: https://nexqual.com/SHO · Free keyless MCP server with the same data and citations: https://mcp.nexqual.com/mcp · Guide for agents: https://nexqual.com/agents · https://nexqual.com/llms.txt

## Supply chain and relationships (SEC annual reports)

Named in SHO's own 10-K filed 2026-02-27 (https://www.sec.gov/Archives/edgar/data/1295810/000110465926021440/sho-20251231x10k.htm):

| Relationship | Company | Sentence in the filing |
|---|---|---|
| Partner | Sunstone Hotel Partnership | "We own, directly or indirectly, 100% of the interests of Sunstone Hotel Partnership, LLC, (the "Operating Partnership"), which is the entity that directly or indirectly owns our hotels." |
| Competitor | Airbnb (ABNB) | "Our hotels compete with other hotels and alternative lodging options such as timeshares, vacation rentals or sharing services such as Airbnb based on location, price, physical attributes, service levels, brand affiliatio…" |

## Revenue by product line (quarter ended 2026-06-30)

| Line | Revenue | Share | YoY |
|---|---|---|---|
| Occupancy | $168.3M | 60.7% | +7.8% |
| Food & Beverage | $78.9M | 28.5% | +1.1% |
| Hotel Other | $29.9M | 10.8% | +16.5% |
| Total revenue | $277.1M | 100% | — |

## Company outlook (8-K filed 2026-08-06)

- "Full Year Outlook ​ ​ ALISO VIEJO, CA – August 6, 2026 – Sunstone Hotel Investors, Inc."

## Analyst estimates and revisions

| Period | EPS est. | 90d ago | Change | Revenue est. | Analysts |
|---|---|---|---|---|---|
| Current quarter (ends 2026-09-30) | $-0.01 | $-0.04 | -62.5% | $224.6M | 2 |
| Next quarter (ends 2026-12-31) | $0.01 | $-0.01 | -150.0% | $224.1M | 2 |
| Current fiscal year (ends 2026-12-31) | $0.22 | $0.09 | +144.4% | $986.7M | 2 |
| Next fiscal year (ends 2027-12-31) | $0.17 | $0.10 | +75.0% | $966.6M | 2 |