Sunstone Hotel Investors Amends Credit Facility

Materially Reduces Financial Covenants

Improves Access to Liquidity

SAN CLEMENTE, Calif., June 29 /PRNewswire-FirstCall/ -- Sunstone Hotel
Investors, Inc. (NYSE: SHO) announced today that it has amended its revolving
credit facility. The amendment reduces the facility's minimum fixed charge
coverage covenant from 1.50:1.00 to 1.00:1.00, with added flexibility to drop
to 0.90:1.00 for up to four quarters. Additionally, the amendment eliminates
the facility's 65% maximum total leverage covenant and replaces it with a
9.50:1.00 maximum net debt to EBITDA covenant, which may be increased to
10.50:1.00 for up to four quarters. The facility's size was reduced from $200
million to $85 million. There are currently no borrowings outstanding on the
facility, and $3.5 million of secured letters of credit associated with the
facility.

The facility, subject to certain terms and conditions, is secured by five of
the company's hotels: the Fairmont Newport Beach, Hyatt Regency Newport Beach,
Renaissance LAX, Residence Inn Rochester Mayo Clinic and the Sheraton
Cerritos. The facility matures in 2012, assuming the exercise of a one-year
extension option. The interest rate on the facility is based on grid pricing
ranging from 375 - 525 basis points over LIBOR.

The facility is led by Citicorp North America, Inc. and Wachovia Bank, NA as
Joint Lead Arrangers and Joint Book Running Managers. Other lenders in the
facility include Calyon, Keybank NA, Bank of America, JP Morgan, Deutsche
Bank, Merrill Lynch, and UBS AG.

"Our ability to materially improve the terms of our credit facility in the
context of a very challenging credit environment speaks to the quality of
Sunstone's lender relationships. We believe that the completion of this
amendment, combined with our recent exchangeable notes repurchases, common
stock offering, non-core asset sales and secured debt management initiatives
will enable Sunstone to emerge from the current down cycle in a position of
strength," said Ken Cruse, Chief Financial Officer.

About Sunstone Hotel Investors, Inc.
Sunstone Hotel Investors, Inc. is a lodging real estate investment trust
("REIT") that, as of the date hereof, has interests in 42 hotels comprised of
14,463 rooms primarily in the upper-upscale segment operated under nationally
recognized brands, such as Marriott, Hilton, Hyatt, Fairmont and Starwood. For
further information, please visit Sunstone's website at
www.sunstonehotels.com.

This press release contains forward-looking statements within the meaning of
federal securities laws and regulations. These forward-looking statements are
identified by their use of terms and phrases such as "anticipate," "believe,"
"continue," "could," "estimate," "expect," "intend," "may," "plan," "predict,"
"project," "should," "will" and other similar terms and phrases, including
references to assumptions and forecasts of future results. Forward-looking
statements are not guarantees of future performance and involve known and
unknown risks, uncertainties and other factors that may cause the actual
results to differ materially from those anticipated at the time the
forward-looking statements are made. These risks include, but are not limited
to: general economic and business conditions affecting the lodging and travel
industry, both nationally and locally, including a prolonged U.S. recession;
our need to operate as a REIT and comply with other applicable laws and
regulations; rising operating expenses; relationships with and requirements of
franchisors and hotel brands; relationships with and the performance of the
managers of our hotels; the ground or air leases for eight of our hotels;
performance of hotels after they are acquired; competition for the acquisition
of hotels; competition in the operation of our hotels; our ability to complete
acquisitions and dispositions; the need for renovations and other capital
expenditures for our hotels; the impact of renovations on hotel operations and
delays in renovations or other developments; changes in business strategy or
acquisition or disposition plans; our level of outstanding debt, including
secured, unsecured, fixed and variable rate debt; financial and other
covenants in our debt and preferred stock; our ability to successfully
complete an amendment to our credit facility; volatility in the credit or
equity markets and the effect on lodging demand or our ability to obtain
financing on favorable terms or at all; and other events beyond our control.
Although Sunstone believes the expectations reflected in such forward-looking
statements are based upon reasonable assumptions, it can give no assurance
that the expectations will be attained or that any deviation will not be
material. All forward-looking information in this release is as of the date
hereof, and Sunstone undertakes no obligation to update any forward-looking
statement to conform the statement to actual results or changes in Sunstone's
expectations.

For Additional Information:

Bryan Giglia
Vice President - Corporate Finance
Sunstone Hotel Investors, Inc.
(949) 369-4236

SOURCE Sunstone Hotel Investors, Inc.

Bryan Giglia, Vice President - Corporate Finance, of Sunstone Hotel Investors,
Inc., +1-949-369-4236