Profile: Sunstone Hotel Investors Inc (SHO.N)

SHO.N on New York Stock Exchange

12.98USD
2 Aug 2013
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Sunstone Hotel Investors, Inc., incorporated on June 28, 2004, is a real estate investment trust (REIT). The Company's primary business is to acquire, own, asset manage and renovate full-service hotel properties in the United States. As of December 31, 2012, it owned 30 hotels, including four hotels that is classified as held for sale and included in discontinued operations due to their sale in January 2013, leaving 26 hotels held for investment (the 26 hotels). The 26 hotels are comprised of 11,632 rooms, located in 12 states and in Washington, D.C. The Company’s hotels are operated under brand names, such as Marriott, Fairmont, Hilton, Hyatt and Sheraton. Portfolio primarily consists of upper upscale hotels in the United States. It also owns luxury, upscale and upper midscale hotels. As of December 31, 2012, its 26 hotels include two luxury hotels, 22 upper upscale hotels and two upscale hotels. The classifications luxury, upper upscale and upscale is defined by Smith Travel Research, an independent provider of lodging industry statistical data. Smith Travel Research classifies hotel chains into the following segments: luxury; upper upscale; upscale; upper midscale; midscale; economy; and independent. In May 2013, Sunstone Hotel Investors Inc acquired Royal St Charles Hotel from St Charles Hotel Investors LLC. In July 2013, Sunstone Hotel Investors Inc announced that it has completed the acquisition of the 1,053-room Boston Park Plaza hotel located in Boston, Massachusetts.

The Company owns, directly or indirectly, 100% of the interests of Sunstone Hotel Partnership, LLC (the Operating Partnership), which is the entity that directly or indirectly owns its hotel properties. It also owns 100% of the interests of its taxable REIT subsidiary, Sunstone Hotel TRS Lessee, Inc., which leases all of its hotels from the Operating Partnership, and engages independent third parties to manage its hotels. In addition, the Company also owns 100% of BuyEfficient, LLC (BuyEfficient), an electronic purchasing platform that allows members to procure food, operating supplies, furniture, fixtures and equipment. As of December 31, 2012, it also owned 100% of a commercial laundry facility located in Rochester, Minnesota, which it has classified as held for sale as of December 31, 2012 and included in discontinued operations due to its sale in January 2013.

During 2012, approximately 91% of the revenues generated by the 26 hotels were earned by hotels located in key gateway markets, such as Boston, New York, Washington, District of Columbia/Baltimore, Chicago, Orlando, New Orleans, Los Angeles, Orange County and San Diego.

The Company's hotels are operated by third-party managers pursuant to long-term management agreements with its TRS Lessee or its subsidiaries. As of December 31, 2012, the Company’s third-party managers i0of the Company’s 26 hotels; a subsidiary of Interstate Hotels & Resorts, Inc. (IHR), manager of six of the Company’s 26 hotels; Highgate Hotels (Highgate), manager of three of the Company’s 26 hotels; Hilton Worldwide (Hilton), manager of two of the Company’s 26 hotels; and Crestline Hotels & Resorts (Crestline), Fairmont Hotels & Resorts (U.S.) (Fairmont) and Hyatt Corporation (Hyatt), each a manager of one of the Company’s 26 hotels. In addition, it owns BuyEfficient, LLC (BuyEfficient), an electronic purchasing platform that allows members to procure food, operating supplies, furniture, fixtures and equipment. As of December 31, 2012, it also owned a commercial laundry facility located in Rochester, Minnesota, which we have classified as held for sale as of December 31, 2012 and included in discontinued operations due to its sale in January 2013.

Company Address

Sunstone Hotel Investors Inc

Suite 350, 120 Vantis
ALISO VIEJO   CA   92656
P: +1949.3304000
F: +1949.3693179

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