Sunstone Hotel Investors, Inc. (SHO) 10-Year Financial Performance & Capital Metrics

SHO • • REIT / Real Estate

Real EstateHotel REITsLuxury & Upper Upscale HotelsPremium Full-Service Hotels

AboutSunstone Hotel Investors, Inc. is a lodging real estate investment trust (REIT) that as of the date of this release has interests in 19 hotels comprised of 9,997 rooms. Sunstone's business is to acquire, own, asset manage and renovate or reposition hotels considered to be Long-Term Relevant Real Estate®, the majority of which are operated under nationally recognized brands, such as Marriott, Hilton and Hyatt.Show more

Revenue $906M -8.2%
FFO $168M -49.7%
FFO/Share 0.83 -48.9%
FFO Payout 35.66% +98.9%
FFO per Share 0.83 -48.9%
NOI Margin 46.56% -3.7%
FFO Margin 18.52% -45.3%
ROE 2.03% -79.2%
ROA 1.38% -79.2%
Debt/Assets 27.46% +4.0%
Net Debt/EBITDA 3.67 +122.9%
Book Value/Share 10.38 -1.3%

Technical Analysis

Key Insights

Based on financial data analysis

✓Strengths

✓Sustainable FFO payout ratio of 35.7%
✓Healthy dividend yield of 3.2%
✓Trading at only 0.9x book value

✗Weaknesses

✗Profits declining 20.4% over 5 years
✗FFO declining 47.9% TTM
✗Dividend payout exceeds 100% of earnings

Price & Volume

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Growth Metrics

Revenue CAGR

10Y-2.29%

5Y-4.07%

3Y21.17%

TTM3.04%

Profit (Net Income) CAGR

10Y-6.11%

5Y-20.44%

3Y8.05%

TTM-89.26%

EPS CAGR

10Y-9.26%

5Y-23.66%

3Y-4.35%

TTM-95.91%

ROCE

10Y Avg3.84%

5Y Avg1.83%

3Y Avg3.43%

Latest2.62%

Peer Comparison

Premium Full-Service Hotels

Name	Market Cap	Current Price	P/E Ratio	Revenue Growth 1Y	Net Margin	ROE	FCF Yield	Debt/Equity
SHOSunstone Hotel Investors, Inc.	1.74B	9.17	65.50	-8.18%	1.94%	0.93%	9.78%	0.41
PKPark Hotels & Resorts Inc.	2.3B	11.49	11.38	-3.67%	2.25%	1.71%	8.79%	1.33
AHTAshford Hospitality Trust, Inc.	29.17M	4.55	-0.26	-14.26%	-20.55%
SOHOSotherly Hotels Inc.	44.26M	2.16	-6.35	4.63%	-0.17%	-0.84%	58.49%	8.18

Profit & Loss

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Revenue+	1.25B	1.19B	1.19B	1.16B	1.12B	267.91M	509.15M	912.05M	986.48M	905.81M
Revenue Growth %	0.09%	-0.05%	0%	-0.03%	-0.04%	-0.76%	0.9%	0.79%	0.08%	-0.08%
Property Operating Expenses	591.83M	560.02M	560.93M	546.38M	530.8M	251.69M	302.32M	464.39M	509.52M	484.07M
Net Operating Income (NOI)+	-	-	-	-	-	-	-	-	-	-
NOI Margin %	-	-	-	-	-	-	-	-	-	-
Operating Expenses+	476.92M	458.91M	451.65M	429.38M	422.28M	16.22M	292.27M	348.31M	358.3M	343.15M
G&A Expenses	237.56M	228.82M	225.91M	218.19M	214.95M	23.74M	31.16M	46.98M	51.96M	52.18M
EBITDA+	345.15M	1.19B	1.15B	1.28B	1.14B	-216.68M	43.24M	225.74M	245.72M	203.1M
EBITDA Margin %	-	-	-	-	-	-	-	-	-	-
Depreciation & Amortization+	164.72M	1.02B	1.01B	977.16M	958.95M	137.05M	128.68M	126.4M	127.06M	124.51M
D&A / Revenue %	-	-	-	-	-	-	-	-	-	-
Operating Income+	180.44M	170.41M	141M	298.85M	178.64M	0	-85.44M	99.34M	118.66M	78.59M
Operating Margin %	-	-	-	-	-	-	-	-	-	-
Interest Expense+	66.52M	50.28M	51.77M	47.69M	54.22M	53.31M	31.72M	32.01M	48.98M	47.62M
Interest Coverage	2.71x	3.39x	2.72x	6.27x	3.29x	-	-2.69x	3.10x	2.42x	1.65x
Non-Operating Income	-309K	-17.73M	-46.58M	-6.72M	-31.99M	353.74M	-150.26M	-23.49M	-141.59M	-11.19M
Pretax Income+	341.06M	140.06M	138.23M	260.83M	142.64M	-403.92M	33.1M	91.13M	211.27M	42.16M
Pretax Margin %	-	-	-	-	-	-	-	-	-	-
Income Tax+	1.43M	-616K	-7.78M	1.77M	-151K	6.59M	109K	359K	4.56M	-1.1M
Effective Tax Rate %	-	-	-	-	-	-	-	-	-	-
Net Income+	347.36M	134.2M	145.38M	250.44M	135.73M	-404.69M	34.3M	87.29M	206.71M	43.26M
Net Margin %	-	-	-	-	-	-	-	-	-	-
Net Income Growth %	3.27%	-0.61%	0.08%	0.72%	-0.46%	-3.98%	1.08%	1.55%	1.37%	-0.79%
Funds From Operations (FFO)+	-	-	-	-	-	-	-	-	-	-
FFO Margin %	-	-	-	-	-	-	-	-	-	-
FFO Growth %	1.16%	1.25%	0%	0.06%	-0.11%	-1.24%	1.61%	0.31%	0.56%	-0.5%
FFO per Share+	-	-	-	-	-	-	-	-	-	-
FFO Payout Ratio %	-	-	-	-	-	-	-	-	-	-
EPS (Diluted)+	1.62	0.55	0.59	1.11	0.54	-1.90	0.16	0.34	0.93	0.14
EPS Growth %	3.38%	-0.66%	0.07%	0.88%	-0.51%	-4.52%	1.08%	1.13%	1.74%	-0.85%
EPS (Basic)	1.62	0.55	0.59	1.11	0.54	-1.90	0.16	0.34	0.93	0.14
Diluted Shares Outstanding	207.35M	214.97M	221.9M	225.92M	225.68M	215.93M	216.3M	212.65M	205.87M	202.64M

Balance Sheet

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Total Assets+	3.86B	3.74B	3.86B	3.97B	3.92B	2.99B	3.04B	3.08B	3.15B	3.11B
Asset Growth %	-0.02%	-0.03%	0.03%	0.03%	-0.01%	-0.24%	0.02%	0.01%	0.02%	-0.01%
Real Estate & Other Assets+	3.24B	3.17B	23.62M	33.36M	2.88B	2.47B	2.69B	2.85B	2.59B	2.86B
PP&E (Net)	1.53M	779K	584K	8.43M	115.92M	79.04M	29.07M	18.71M	15.88M	10.73M
Investment Securities	760K	1000K	1000K	1000K	0	0	0	0	0	0
Total Current Assets+	619.54M	567.62M	728.12M	908.47M	913.73M	435.14M	282.1M	213.7M	551.29M	235.37M
Cash & Equivalents	499.07M	369.54M	488M	809.32M	816.86M	368.41M	120.48M	101.22M	426.4M	107.2M
Receivables	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K
Other Current Assets	87.06M	157.53M	204.58M	64.24M	48.12M	47.73M	118.54M	55.98M	93.68M	73.08M
Intangible Assets	37.44M	35.82M	34.14M	50.89M	0	0	42.7M	933K	930K	930K
Total Liabilities	1.51B	1.21B	1.28B	1.26B	1.3B	896.34M	801.27M	997.86M	982.68M	1B
Total Debt+	1.11B	946.88M	1.01B	1B	1.04B	790.31M	634.55M	831.69M	831.29M	853.07M
Net Debt	613.1M	577.34M	521.56M	194.76M	219.47M	421.91M	514.07M	730.47M	404.89M	745.87M
Long-Term Debt	1.01B	746.37M	977.28M	971.23M	888.95M	742.53M	588.74M	592.68M	740.51M	841.05M
Short-Term Borrowings	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	0
Capital Lease Obligations	15.57M	15.57M	26.8M	27.01M	65.26M	45.52M	25.12M	19.01M	16.73M	12.02M
Total Current Liabilities+	450.99M	408.8M	242.56M	232.72M	325.55M	90.79M	175.83M	327.71M	165.66M	94.65M
Accounts Payable	30.19M	36.11M	31.81M	30.43M	35.61M	37.33M	47.7M	73.73M	48.41M	52.72M
Deferred Revenue	12.73M	14.51M	13.45M	16.71M	18M	13.34M	33.82M	3.98M	2.71M	1.43M
Other Liabilities	36.29M	36.65M	3.56M	30.7M	4.02M	9.58M	4.91M	4.25M	11.63M	54.9M
Total Equity+	2.35B	2.53B	2.58B	2.71B	2.62B	2.09B	2.24B	2.08B	2.17B	2.1B
Equity Growth %	0.04%	0.08%	0.02%	0.05%	-0.03%	-0.2%	0.07%	-0.07%	0.04%	-0.03%
Shareholders Equity	2.3B	2.48B	2.53B	2.66B	2.57B	2.05B	2.2B	2.08B	2.17B	2.1B
Minority Interest	50.32M	49.06M	48.44M	47.69M	46.23M	40.73M	40.81M	0	0	0
Common Stock	2.08M	2.2M	2.25M	2.28M	2.25M	2.16M	2.19M	2.09M	2.04M	2.01M
Additional Paid-in Capital	2.46B	2.6B	2.68B	2.73B	2.68B	2.59B	2.63B	2.47B	2.42B	2.4B
Retained Earnings	-275.01M	786.9M	932.28M	1.18B	1.32B	913.77M	948.06M	-663.98M	-533.06M	-574.94M
Preferred Stock	115M	190M	190M	190M	190M	190M	281.25M	281.25M	281.25M	281.25M
Return on Assets (ROA)	0.09%	0.04%	0.04%	0.06%	0.03%	-0.12%	0.01%	0.03%	0.07%	0.01%
Return on Equity (ROE)	0.15%	0.05%	0.06%	0.09%	0.05%	-0.17%	0.02%	0.04%	0.1%	0.02%
Debt / Assets	0.29%	0.25%	0.26%	0.25%	0.26%	0.26%	0.21%	0.27%	0.26%	0.27%
Debt / Equity	0.47x	0.37x	0.39x	0.37x	0.40x	0.38x	0.28x	0.40x	0.38x	0.41x
Net Debt / EBITDA	1.78x	0.49x	0.45x	0.15x	0.19x	-	11.89x	3.24x	1.65x	3.67x
Book Value per Share	11.34	11.78	11.64	12.00	11.61	9.68	10.36	9.80	10.52	10.38

Cash Flow

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Cash from Operations+	300.06M	305.41M	310.79M	305.29M	290.92M	-116.7M	28.37M	209.38M	198.13M	170.38M
Operating CF Growth %	0.08%	0.02%	0.02%	-0.02%	-0.05%	-1.4%	1.24%	6.38%	-0.05%	-0.14%
Operating CF / Revenue %	-	-	-	-	-	-	-	-	-	-
Net Income	355.52M	140.68M	153M	259.06M	142.79M	-410.51M	32.99M	90.77M	206.71M	42.99M
Depreciation & Amortization	166.88M	163.66M	159.1M	146.54M	147.75M	137.05M	128.68M	126.33M	127.06M	124.51M
Stock-Based Compensation	6.54M	7.16M	8.04M	9.01M	9.31M	9.58M	12.79M	10.89M	10.78M	10.46M
Other Non-Cash Items	2.21M	2.2M	-5.42M	-113.22M	-9.02M	114.75M	-480K	-21.66M	-134.21M	2.31M
Working Capital Changes	8.25M	10.66M	5.3M	2.77M	-603K	25.01M	3.76M	3.05M	-12.2M	-9.88M
Cash from Investing+	399.35M	-152.16M	-146.12M	156.37M	-47.15M	113.79M	-239.69M	-165.72M	258.08M	-386.28M
Acquisitions (Net)	0	0	0	0	0	0	1.38M	-104.26M	0	0
Purchase of Investments	-13K	-11.81M	-125K	-15.15M	-705K	-111K	-80K	-299K	0	0
Sale of Investments	1000K	0	0	0	0	0	1000K	1000K	0	0
Other Investing	399.37M	-152.16M	-145.99M	174.91M	-46.42M	114M	-181.32M	-165.42M	258.08M	-386.28M
Cash from Financing+	-422.44M	-282.78M	-46.2M	-158.6M	-241.17M	-445.92M	-42.1M	-49.17M	-119.72M	-97.52M
Dividends Paid	-77.54M	-227.49M	-163.01M	-177.62M	-170.17M	-156.27M	-13.69M	-24.82M	-59.83M	-90.97M
Common Dividends	-77.54M	-227.49M	-163.01M	-177.62M	-170.17M	-156.27M	-13.69M	-24.82M	-59.83M	-59.83M
Debt Issuance (Net)	-1000K	-1000K	1000K	-1000K	-1000K	-1000K	-1000K	1000K	1000K	1000K
Share Repurchases	-9.26M	-2.64M	-3.79M	-4.23M	-54.52M	-107.89M	-4.88M	-111.79M	-59.75M	-31.4M
Other Financing	-17.09M	-10.44M	66.14M	-14.16M	-8.51M	-4.04M	194K	-117.26M	-3.06M	-1.1M
Net Change in Cash+	276.97M	-129.53M	118.47M	303.06M	2.6M	-448.83M	-253.42M	-5.51M	336.49M	-313.42M
Exchange Rate Effect	0	0	0	0	0	0	0	0	0	0
Cash at Beginning	222.1M	499.07M	369.54M	559.31M	862.37M	864.97M	416.14M	162.72M	157.21M	493.7M
Cash at End	499.07M	369.54M	488M	862.37M	864.97M	416.14M	162.72M	157.21M	493.7M	180.28M
Free Cash Flow+	135.83M	123.23M	195.69M	286.75M	290.89M	-116.7M	-35.29M	80.81M	198.13M	170.38M
FCF Growth %	-0.51%	-0.09%	0.59%	0.47%	0.01%	-1.4%	0.7%	3.29%	1.45%	-0.14%
FCF / Revenue %	-	-	-	-	-	-	-	-	-	-

Key Ratios

Metric	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
FFO per Share	2.47	5.36	5.21	5.43	4.85	-1.24	0.75	1	1.62	0.83
FFO Payout Ratio	15.14%	19.75%	14.1%	14.47%	15.54%	-58.39%	8.4%	11.62%	17.92%	35.66%
NOI Margin	52.62%	52.91%	53.01%	52.86%	52.4%	6.05%	40.62%	49.08%	48.35%	46.56%
Net Debt / EBITDA	1.78x	0.49x	0.45x	0.15x	0.19x	-	11.89x	3.24x	1.65x	3.67x
Debt / Assets	28.79%	25.32%	26.17%	25.27%	26.44%	26.47%	20.87%	26.98%	26.4%	27.46%
Interest Coverage	2.71x	3.39x	2.72x	6.27x	3.29x	-	-2.69x	3.10x	2.42x	1.65x
Book Value / Share	11.34	11.78	11.64	12	11.61	9.68	10.36	9.8	10.52	10.38
Revenue Growth	9.39%	-4.79%	0.36%	-2.9%	-3.79%	-75.98%	90.05%	79.13%	8.16%	-8.18%

Revenue by Segment

	2018	2019	2020	2021	2022	2023	2024
Occupancy	799.37M	767.39M	169.52M	-	-	-	559.06M
Occupancy Growth	-	-4.00%	-77.91%	-	-	-	-
Food and Beverage	-	-	-	-	-	-	256.22M
Food and Beverage Growth	-	-	-	-	-	-	-
Hotel, Other	-	-	-	-	-	-	90.53M
Hotel, Other Growth	-	-	-	-	-	-	-
Room	-	-	-	352.97M	576.17M	619.28M	-
Room Growth	-	-	-	-	63.23%	7.48%	-
Food and beverage	-	-	-	83.92M	240.56M	277.51M	-
Food and beverage Growth	-	-	-	-	186.68%	15.36%	-
Other operating	-	-	-	72.26M	95.32M	89.69M	-
Other operating Growth	-	-	-	-	31.91%	-5.91%	-
Food And Beverage	284.67M	272.87M	54.9M	-	-	-	-
Food And Beverage Growth	-	-4.14%	-79.88%	-	-	-	-
Hotel Other	-	74.91M	43.48M	-	-	-	-
Hotel Other Growth	-	-	-41.95%	-	-	-	-
Product And Service Other	75.02M	-	-	-	-	-	-
Product And Service Other Growth	-	-	-	-	-	-	-

Frequently Asked Questions

Valuation & Price

Sunstone Hotel Investors, Inc. (SHO) has a price-to-earnings (P/E) ratio of 65.5x. This suggests investors expect higher future growth.

Growth & Financials

Sunstone Hotel Investors, Inc. (SHO) reported $937.9M in revenue for fiscal year 2024. This represents a 12% increase from $834.7M in 2011.

Sunstone Hotel Investors, Inc. (SHO) saw revenue decline by 8.2% over the past year.

Yes, Sunstone Hotel Investors, Inc. (SHO) is profitable, generating $18.2M in net income for fiscal year 2024 (4.8% net margin).

Dividend & Returns

Yes, Sunstone Hotel Investors, Inc. (SHO) pays a dividend with a yield of 3.22%. This makes it attractive for income-focused investors.

Sunstone Hotel Investors, Inc. (SHO) has a return on equity (ROE) of 2.0%. This is below average, suggesting room for improvement.

Industry Metrics

Sunstone Hotel Investors, Inc. (SHO) generated Funds From Operations (FFO) of $151.2M in the trailing twelve months. FFO is the primary profitability metric for REITs.

Sunstone Hotel Investors, Inc. (SHO) offers a 3.22% dividend yield, which is attractive for income investors. REITs are required to distribute at least 90% of taxable income to shareholders.

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