Sunstone Hotel (SHO) AI Stock Analysis

• Market Cap: $1.75B
• Dividend Yield: 3.91%
• Average Volume (3M): 1.25M
• Price to Earnings (P/E): 1001.1
• Beta (1Y): 0.93
• Revenue Growth: 3.04%
• EPS Growth: -98.77%
• Country: US
• Employees: 36
• Sector: N/A
• Sector Strength: N/A
• Industry: REIT - Hotel & Motel
• EPS (TTM): -0.02
• Shares Outstanding: 189,903,150
• 10 Day Avg. Volume: 1,268,210
• 30 Day Avg. Volume: 1,253,936
• PEG Ratio: -0.65
• Price to Book (P/B): 1.14
• Price to Sales (P/S): 2.64
• P/FCF Ratio: 14.02
• Enterprise Value/Market Cap: 1.59
• Enterprise Value/Revenue: 2.97
• Enterprise Value/Gross Profit: 6.39
• Enterprise Value/Ebitda: 14.02
• 1Y Price Target: $9.83
• Price Target Upside: 8.14% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 57 Neutral
• Price Target: $9.00 ▼(-0.99% Downside)

Sunstone Hotel's overall stock score is primarily influenced by its financial performance and technical analysis. The company shows strong revenue growth and a stable balance sheet, but faces challenges in profitability and cash flow. Technical indicators suggest bearish momentum, contributing to a lower score. Valuation concerns due to a high P/E ratio further impact the score negatively. However, positive corporate events and a mixed but optimistic earnings call provide some support.

Sunstone Hotel Business Overview & Revenue Model

Company Description

Sunstone Hotel (SHO) is a hospitality investment company that focuses on acquiring and developing premium hotels in key urban and resort markets across the United States. The company operates a diversified portfolio of properties, which includes both luxury and select-service hotels, catering to a variety of travelers. Sunstone Hotel aims to enhance guest experiences through strategic property upgrades and exceptional customer service, positioning itself as a leader in the hospitality sector.

How the Company Makes Money

Sunstone Hotel generates revenue primarily through the leasing and management of its hotel properties. The company earns income from room bookings, food and beverage sales, and ancillary services like event hosting and catering. Key revenue streams include direct sales from guest accommodations, which constitute the largest portion of revenue, as well as revenue from partnerships with travel agencies and online booking platforms. Additionally, Sunstone may benefit from management fees by operating hotels on behalf of third-party owners. The company also focuses on maximizing asset value through strategic renovations and operational efficiencies, contributing to increased revenue over time.

Sunstone Hotel Financial Statement Overview

Summary

Income Statement

Balance Sheet

Cash Flow

Breakdown
Income Statement
Total Revenue
Gross Profit
EBITDA
Net Income
Balance Sheet
Total Assets
Cash, Cash Equivalents and Short-Term Investments
Total Debt
Total Liabilities
Stockholders Equity
Cash Flow
Free Cash Flow
Operating Cash Flow
Investing Cash Flow
Financing Cash Flow

Sunstone Hotel Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 9.09
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SHO, the sentiment is Positive. The current price of 9.09 is below the 20-day moving average (MA) of 9.15, below the 50-day MA of 9.18, and above the 200-day MA of 8.97, indicating a bullish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 51.67 is Neutral, neither overbought nor oversold. The STOCH value of 80.95 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SHO.

Sunstone Hotel Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	―	―	―	―	―	―	―
DRH	65 Neutral	$1.89B	35.40	3.98%	5.05%	0.95%	-8.40%
XHR	64 Neutral	$1.41B	26.64	4.58%	3.62%	4.29%	141.01%
RLJ	58 Neutral	$1.17B	159.21	1.49%	7.76%	-0.58%	-83.32%
SHO	57 Neutral	$1.75B	1,001.09	0.88%	3.91%	3.04%	-98.77%
PK	56 Neutral	$2.16B	-145.81	-0.36%	12.95%	-3.57%	-104.55%
PEB	54 Neutral	$1.29B	-9.70	-3.74%	0.34%	0.99%	-360.58%

Sunstone Hotel Corporate Events

Sunstone Hotel Secures $1.35 Billion Credit Agreement

On September 24, 2025, Sunstone Hotel Investors, Inc. entered into a Third Amended and Restated Credit Agreement with a total borrowing capacity of $1.35 billion. This agreement, which includes a $500 million revolving credit facility and three term loans totaling $850 million, aims to address near-term maturities, extend loan durations, and strengthen the company’s balance sheet. The credit facilities, led by major financial institutions, are designed to enhance Sunstone’s financial flexibility and lower borrowing costs through interest rate swaps, with over 75% of its debt now subject to fixed rates. The company plans to use the proceeds to consolidate its prior loans and repay its revolving credit facility, delaying the draw of $90 million until January 2026 to repay Series A Senior Notes, ensuring no debt maturities until 2028.