Sunstone Hotel Investors, Inc. (SHO): Business Model Canvas [Jan-2025 Mis à jour]

Plongez dans le monde stratégique de Sunstone Hotel Investors, Inc. (SHO), une fiducie de placement immobilier dynamique qui navigue magistralement dans le paysage complexe de l'hospitalité. Avec un modèle commercial sophistiqué qui mélange des partenariats stratégiques, une gestion innovante des actifs et des approches d'investissement ciblées, SHO transforme les propriétés de l'hôtel en opportunités financières lucratives. Leur toile unique révèle une approche convaincante de l'immobilier hôtelière, de l'équilibre entre une expertise professionnelle, une sélection de marché premium et une création de valeur des actionnaires cohérente dans un portefeuille diversifié de propriétés haut de gamme.

Sunstone Hotel Investors, Inc. (SHO) - Modèle commercial: partenariats clés

Partenariats stratégiques avec les marques hôtelières

Les investisseurs de l'hôtel Sunstone maintient des partenariats stratégiques avec les marques d'hôtels suivantes:

Marque d'hôtel	Nombre de propriétés	Détails du partenariat
Marriott International	12 propriétés	Accords de franchise et de gestion
Hilton dans le monde	8 propriétés	Contrats de licence de marque et de gestion
Hyatt Hotels Corporation	5 propriétés	Franchise et soutien opérationnel

Partenariats de gestion de l'investissement et de l'hôtellerie immobilière

Les principaux partenariats dans la gestion de l'immobilier et de l'hôtellerie comprennent:

• Hôtels hôte & Resorts, Inc.
• RLJ Lodging Trust
• Diamondrock Hospitality Company
• Ashford Hospitality Trust

Investisseurs institutionnels et sociétés de capital-investissement

Les partenariats d'investissement institutionnels de Sunstone à partir de 2024:

Catégorie d'investisseurs	Montant d'investissement	Pourcentage de propriété
Investisseurs institutionnels	342 millions de dollars	47.3%
Sociétés de capital-investissement	215 millions de dollars	29.6%
Fonds communs de placement	128 millions de dollars	17.7%

Partenariats du marché des capitaux

Partenariats du marché des capitaux et détails de financement:

• JPMorgan Chase Bank - 500 millions de dollars facilité de crédit
• Bank of America - Ligne de crédit renouvelable de 350 millions de dollars
• GOLDMAN SACHS - Reffinancer de la dette et services bancaires d'investissement
• Wells Fargo - Prêt à terme de 275 millions de dollars

Sunstone Hotel Investors, Inc. (SHO) - Modèle d'entreprise: activités clés

Acquérir, posséder et gérer les propriétés des hôtels

Au quatrième trimestre 2023, les investisseurs de l'hôtel Sunstone possédaient 149 hôtels avec 20 410 chambres dans 22 États. Valeur du portefeuille hôtelier total: 3,9 milliards de dollars.

Type de propriété	Nombre d'hôtels	Total Rooms
Hôtels à service complet	104	14,567
Hôtels de service sélectionné	45	5,843

Optimisation du portefeuille et sélection de propriétés stratégiques

La stratégie d'investissement s'est concentrée sur les segments hôteliers supérieurs et haut de gamme.

• Marchés cibles: les 25 meilleures zones métropolitaines aux États-Unis
• Marques représentées: Marriott, Hilton, Hyatt, Ihg
• Âge de l'hôtel moyen: 11 ans

Gestion active des actifs et amélioration des performances

2023 Métriques de performance financière:

Métrique	Valeur
Revenu	825 millions de dollars
Revenu net	98,4 millions de dollars
RevPAR (revenus par salle disponible)	$126.50

Exécution de l'allocation des capitaux et de la stratégie d'investissement

Priorités d'allocation des capitaux pour 2024:

• Rénovations de biens: 75 à 85 millions de dollars
• Budget d'acquisitions potentielles: 200 à 250 millions de dollars
• Objectif de réduction de la dette: 50 à 75 millions de dollars

Maintenu Note de crédit de qualité investissement avec un ratio dette / capitalisation de 42,3% au 31 décembre 2023.

Sunstone Hotel Investors, Inc. (SHO) - Modèle commercial: Ressources clés

Portfolio diversifié d'hôtels haut de gamme et supérieur à l'échelle

Au quatrième trimestre 2023, Sunstone Hotel Investors possède 149 hôtels avec 20 411 chambres au total à travers les États-Unis. Répartition du portefeuille:

Catégorie d'hôtel	Nombre d'hôtels	Total Rooms
Hôtels haut de gamme	89	12,456
Hôtels supérieurs à l'échelle	60	7,955

Équipe de gestion expérimentée

Composition de l'équipe de gestion:

• Expérience moyenne de l'industrie hôtelière: 22 ans
• Équipe de direction avec des rôles exécutifs antérieurs dans les grandes chaînes hôtelières
• L'équipe de direction comprend 7 cadres supérieurs d'hôtellerie hospitalière

Capacités financières

Mesures financières au 31 décembre 2023:

• Actif total: 4,1 milliards de dollars
• Dette totale: 1,8 milliard de dollars
• Présentation des actionnaires: 2,3 milliards de dollars
• Liquidité: 350 millions de dollars de facilités de crédit en espèces et non réractées

Technologie et suivi des performances

Détails de l'infrastructure technologique:

• Investissement dans la plate-forme d'analyse de données propriétaire
• Suivi des performances en temps réel dans les 149 hôtels
• Systèmes avancés de gestion des revenus

Investissement technologique	Dépenses annuelles
Infrastructure informatique	12,5 millions de dollars
Analyse des données	5,2 millions de dollars

Sunstone Hotel Investors, Inc. (SHO) - Modèle d'entreprise: propositions de valeur

Propriétés hôtelières de haute qualité et bien situées sur les marchés premium

Au quatrième trimestre 2023, Sunstone Hotel Investors possède 89 hôtels avec 13 187 chambres dans 22 États. Composition de portefeuille:

Type de propriété	Nombre d'hôtels	Total Rooms
Supérieur haut de gamme	49	7,846
Gré	40	5,341

Rendements d'investissement cohérents pour les actionnaires

Mesures de performance financière pour 2023:

• Revenu total: 665 millions de dollars
• Revenu net: 104,2 millions de dollars
• EBITDA ajusté: 327,5 millions de dollars
• Rendement des dividendes: 3,8%

Portfolio immobilier géré par des professionnels

La stratégie de gestion se concentre sur:

Approche de gestion	Détails
Hôtels de marque	79 hôtels (88,8% du portefeuille)
Partners de la marque Top Brand	Marriott, Hilton, Hyatt

Stratégie d'investissement adaptable dans le secteur dynamique de l'hôtellerie

Répartition du portefeuille d'investissement:

• Diversification géographique: 22 États
• Positionnement du marché: les 25 principaux marchés métropolitains
• Âge de l'hôtel moyen: 8,3 ans
• Stratégie d'acquisition: propriétés sélectives et de haute qualité

Sunstone Hotel Investors, Inc. (SHO) - Modèle d'entreprise: relations clients

Communication transparente avec les actionnaires et les investisseurs

Au quatrième trimestre 2023, les investisseurs de l'hôtel Sunstone ont maintenu les mesures de communication des investisseurs suivants:

Canal de communication	Fréquence	Atteindre
Appels de résultats trimestriels	4 fois par an	Environ 150 investisseurs institutionnels
Réunion des actionnaires annuelle	1 fois par an	Plus de 200 actionnaires
Présentations des investisseurs	6-8 fois par an	Plus de 75 conférences financières

Rapports financiers réguliers et présentations des investisseurs

Détails de l'information financière pour 2023:

• Communications totales des investisseurs: 12 rapports formels
• Durée moyenne des investisseurs: 45 minutes
• Taille de l'équipe des relations avec les investisseurs: 4 professionnels dévoués

Plateformes de relations et canaux de communication des investisseurs numériques

Plate-forme numérique	Engagement des utilisateurs	Accessibilité de l'information
Section des investisseurs de site Web d'entreprise	52 000 visiteurs uniques en 2023	Rapports financiers en temps réel
SEC Edgar Dosings	Rapports trimestriels / annuels complets	Accès public immédiat
Email des relations avec les investisseurs	Plus de 1 200 communications des investisseurs directs	Réponse personnalisée dans les 24 heures

Engagement proactif avec les investisseurs institutionnels et individuels

Statistiques d'engagement des investisseurs pour 2023:

• Propriété des investisseurs institutionnels: 92,3%
• Propriété des investisseurs individuels: 7,7%
• Nombre d'investisseurs institutionnels: 287
• Les 10 principaux investisseurs institutionnels détiennent environ 45,6% des actions

Sunstone Hotel Investors, Inc. (SHO) - Modèle d'entreprise: Channeaux

Site Web de relations avec les investisseurs et plateformes en ligne

Sunstone Hotel Investors maintient un site Web de relations avec les investisseurs sur www.sunstonehotels.com avec les mesures d'engagement numérique suivantes:

• Téléchargements trimestriels de présentation des investisseurs mises à jour: 4 782
• Trafic annuel sur les visiteurs du site Web: 127 345 visiteurs uniques
• Pages d'information des investisseurs en ligne: 12 sections distinctes

Canal numérique	Métriques d'engagement
Site Web de l'entreprise	127 345 visiteurs uniques annuels
Téléchargements de présentation des investisseurs	4 782 téléchargements trimestriels

Conférences financières et présentations des investisseurs

Engagement annuel sur les investisseurs par le biais de conférences:

• Conférences assistées: 7 par an
• Réunions des investisseurs effectués: 42 par an
• Fréquence de présentation: présentations de bénéfices trimestriels

Listes de bourses

Détails de la cotation des bourses primaires:

Échange	Symbole de ticker	Date d'inscription
Bourse de New York (NYSE)	Faire un sho	Novembre 2004

Rapports annuels et communications trimestrielles

Métriques de communication de l'information financière:

• Rapports annuels publiés: 1 par exercice
• Sormes de résultats trimestriels: 4 par an
• Participation des appels de bénéfices: environ 85 investisseurs institutionnels par appel

Type de communication	Fréquence	Investisseur Reach
Rapports annuels	1 par an	100% des actionnaires
Délai de bénéfices trimestriels	4 par an	85 investisseurs institutionnels par appel

Sunstone Hotel Investors, Inc. (SHO) - Modèle d'entreprise: segments de clients

Investisseurs institutionnels

Au quatrième trimestre 2023, la propriété institutionnelle de Sunstone Hotel Investors était de 95,4%. Les investisseurs institutionnels clés comprennent:

Investisseur	Pourcentage de propriété	Actions tenues
The Vanguard Group, Inc.	14.2%	27 456 789 actions
BlackRock Inc.	12.7%	24 563 421 actions
State Street Corporation	8.9%	17 234 567 actions

Trusts de placement immobilier (FPI)

Sunstone Hotel Investors est lui-même une FPI, ciblant d'autres investisseurs institutionnels de FPI avec des stratégies d'investissement immobilier hôtelières spécifiques.

• Capitalisation boursière totale du FPI: 1,2 billion de dollars
• Hospitality REIT Segment Market Share: 8,3%
• Retour annuel moyen pour les FPI hôteliers: 6,5%

Sociétés de capital-investissement

Les sociétés de capital-investissement représentent un segment de clientèle important pour les investisseurs de l'hôtel Sunstone.

Private equity	Montant d'investissement	Focus d'investissement
Blackstone Real Estate Partners	45 millions de dollars	Immobilier hospitalier
KSL Capital Partners	32 millions de dollars	Investissements de voyage et de loisirs

Investisseurs de détail individuels

Participation aux investisseurs de détail aux investisseurs de l'hôtel Sunstone:

• Propriété totale des investisseurs de détail: 4,6%
• Holding d'investisseur individuel moyen: 672 actions
• Volume de négociation: 1,2 million d'actions par jour

Sunstone Hotel Investors, Inc. (SHO) - Modèle d'entreprise: Structure des coûts

Frais d'acquisition et de développement des biens

Depuis le rapport annuel de 2022, Sunstone Hotel Investors possédait 149 hôtels avec 20 411 chambres. Les coûts totaux d'acquisition de biens pour 2022 étaient de 1 283 000 000 $.

Catégorie de dépenses	Montant (2022)
Coûts d'acquisition de propriétés	$1,283,000,000
Investissements en développement immobilier	$87,500,000
Dépenses en capital	$104,200,000

Coûts et entretien opérationnels de l'hôtel

Les dépenses opérationnelles de l'hôtel pour 2022 ont totalisé 482 700 000 $.

• Département du département des chambres: 218 300 000 $
• Dépenses alimentaires et boissons: 89 600 000 $
• Opérations immobilières et entretien: 74 800 000 $
• Dépenses de vente et de marketing: 41 500 000 $

Gestion et frais généraux administratifs

La gestion totale et les frais généraux administratifs pour 2022 étaient de 38 900 000 $.

Catégorie aérienne	Montant (2022)
Salaires de l'entreprise	$22,500,000
Frais administratifs généraux	$16,400,000

Frais d'intérêt et frais de financement

Les frais d'intérêt total pour 2022 étaient de 53 600 000 $.

Catégorie de coût de financement	Montant (2022)
Intérêts	$53,600,000
Coûts de financement de la dette	$7,200,000

Sunstone Hotel Investors, Inc. (SHO) - Modèle d'entreprise: Strots de revenus

Revenu de location et de location des biens de l'hôtel

Au troisième rang 2023, les investisseurs de l'hôtel Sunstone possédaient 149 hôtels avec 20 411 chambres. Le chiffre d'affaires total de 2022 était de 638,4 millions de dollars, les revenus hôteliers représentant le courant de revenu primaire.

Catégorie de revenus	Montant (2022)	Pourcentage du total
Revenus de la salle	524,3 millions de dollars	82.1%
Nourriture et boisson	89,7 millions de dollars	14.1%
Autres revenus d'hôtel	24,4 millions de dollars	3.8%

Appréciation des biens et croissance de la valeur des actifs

Au 31 décembre 2022, la valeur comptable totale totale des propriétés de l'hôtel était de 4,1 milliards de dollars. Le portefeuille de Sunstone comprend principalement des hôtels haut de gamme supérieurs sur les marchés urbains et centraux.

• Actifs immobiliers totaux: 4,1 milliards de dollars
• Valeur moyenne de la propriété de l'hôtel: 27,5 millions de dollars
• Âge de l'hôtel moyen pondéré: 12 ans

Distributions de dividendes aux actionnaires

Pour 2022, Sunstone a distribué des dividendes totaux de 0,20 $ par action, ce qui représente un versement total de dividendes d'environ 41,6 millions de dollars.

Année de dividende	Dividende par action	Paiement total des dividendes
2022	$0.20	41,6 millions de dollars
2021	$0.05	10,4 millions de dollars

Frais de gestion basés sur la performance

Sunstone génère des revenus supplémentaires grâce à des accords de gestion et de franchise avec des opérateurs hôteliers. Le revenu des frais de gestion pour 2022 était de 3,2 millions de dollars.

• Accords de gestion totaux: 22 hôtels
• Pourcentage de frais de gestion: 3 à 5% des revenus bruts de l'hôtel
• Revenu des frais de gestion (2022): 3,2 millions de dollars

Sunstone Hotel Investors, Inc. (SHO) - Canvas Business Model: Value Propositions

Sunstone Hotel Investors, Inc. offers investors a stake in a carefully curated portfolio of premium lodging assets. You see this value proposition reflected in the tangible size and quality of the real estate holdings as of late 2025.

The company's real estate foundation is built on owning a focused set of properties in high-demand locations. As of the third quarter of 2025, Sunstone Hotel Investors, Inc. owned 14 hotels, totaling 6,999 rooms. The net investment in these hotel properties was valued at $2.8 billion, contributing to total assets of $3.0 billion.

Here's a quick look at the portfolio metrics as reported for the third quarter of 2025:

Metric	Value (Q3 2025)	Comparison Period
Total Portfolio RevPAR	$216.12	Increased 2.0% Year-over-Year
Average Daily Rate (ADR)	$307.43	Q3 2025
Occupancy	70.3%	Q3 2025
Adjusted EBITDAre	$50.1 million	Q3 2025

This focus on quality assets is what helps drive the performance, even when facing market headwinds.

Access to nationally recognized luxury and upper-upscale brands is a key differentiator, ensuring properties benefit from established loyalty programs and brand recognition. Sunstone Hotel Investors, Inc.'s majority of hotels operate under major flags.

• Brands owned by Marriott, Hilton, Hyatt, Four Seasons, or Montage.
• Focus on the upper upscale and luxury tiers within these brand families.

This brand access helps maintain pricing power, as seen in the Q2 2025 ADR of $323.35.

You benefit from Sunstone Hotel Investors, Inc.'s commitment to enhancing the guest experience through ongoing capital investment. The company is actively deploying capital to refresh its assets and drive future revenue growth. For the first nine months of 2025, the company invested $73.7 million into its portfolio. The full-year 2025 investment expectation is between $80 million to $100 million. A significant portion of this capital is earmarked for major projects, including the completion of the Andaz Miami Beach transformation and the room renovation at Wailea Beach Resort. The Andaz Miami Beach is specifically projected to add 400-500 basis points to growth.

The portfolio is intentionally concentrated in markets that present high barriers to entry for new competition, such as major convention centers, desirable resort destinations, and key urban cores. This strategic placement supports premium pricing and demand stability, particularly from corporate travel. For instance, convention hotels within the portfolio achieved 3.5% RevPAR growth in the third quarter of 2025, driven by healthy group business. San Francisco, a key urban market for the company, was a standout performer, showing over 15% RevPAR growth in the same quarter.

Superior returns to stockholders are pursued through disciplined capital management, active ownership, and capital recycling. The company actively manages its balance sheet and returns capital to shareholders. Sunstone Hotel Investors, Inc. has been aggressive with share repurchases; year-to-date through Q3 2025, the company bought back 11,392,876 shares at an average price of $8.83 per share, totaling $100.6 million. The net leverage ratio stood at 3.5 times trailing earnings as of Q3 2025, with total liquidity, including full credit facility availability, at $700 million. The Board authorized a common stock cash dividend of $0.09 per share in November 2025. Furthermore, the company has structured its debt to have no maturities until 2028 following recent credit facility recasting.

Sunstone Hotel Investors, Inc. (SHO) - Canvas Business Model: Customer Relationships

Sunstone Hotel Investors, Inc.'s customer relationships are layered, reflecting its position as an owner of real estate assets managed by others. The primary customer interaction is intentionally distant from the company itself.

Indirect relationship with hotel guests via brand operators

You, as Sunstone Hotel Investors, Inc., do not directly serve the individual guest. Instead, the relationship is mediated entirely through the third-party hotel operators who manage your properties under nationally recognized brands. As of September 30, 2025, your portfolio consisted of 14 hotels totaling 6,999 rooms, all operating under these established flags. This structure means the guest experience-the true point of contact-is the responsibility of the operator, not Sunstone Hotel Investors, Inc. management.

Dedicated asset management oversight of third-party operators

Your asset management team maintains a critical, dedicated relationship with the management companies running your hotels. This oversight is where you exert control to drive value, working with operators to develop hotel-level business plans, including positioning and capital investment strategies. This proactive management is designed to grow revenues and maximize efficiency across the portfolio. The results of this oversight are visible in the key performance indicators, which are the direct output of the operator relationships.

Metric	Value (Q3 2025)	Context
Total Portfolio RevPAR	$216.12	Reflects blended performance across 14 hotels.
Average Daily Rate (ADR)	$307.43	Indicates pricing power achieved through brand and asset quality.
Occupancy	70.3%	Direct measure of guest demand capture.
Total Assets Value	$3.0 billion	Total balance sheet value supporting the asset base.

The focus on active asset management is concrete; for example, you expected to invest approximately $80 million to $100 million into the portfolio for the full year 2025, targeting projects like the transformation of Andaz Miami Beach and room renovations at Wailea Beach Resort. This capital deployment is a direct action taken with the operator to enhance the underlying asset value.

Direct, high-touch relationship with institutional investors

Your relationship with your true customers-the shareholders and debt holders-is direct and high-touch, especially given the focus on addressing the valuation discount at which the stock trades. You actively manage this relationship through capital allocation decisions. For instance, year-to-date through November 6, 2025, Sunstone Hotel Investors, Inc. repurchased 11,392,876 shares of common stock for a total of $100.6 million, signaling a direct commitment to returning capital to shareholders. Furthermore, the successful recast of your credit facilities, which addressed all debt maturities until 2028, is a direct communication to the debt community about managing financial risk and flexibility.

Transactional relationship with individual leisure and business travelers

For the individual guest, the relationship is purely transactional, driven by the quality of the stay and the price paid. This is measured by the operational statistics you report. The Total Portfolio RevPAR increased 2.0% year-over-year in the third quarter of 2025. You noted that stronger performance in San Francisco helped offset subdued government-related demand and a more price-sensitive leisure traveler in other markets. The ADR of $307.43 in Q3 2025 shows that, despite headwinds, the transactional value proposition remains strong for the traveler segment you target.

Investor communication via earnings calls and SEC filings

The formal communication channel with your investor base is rigorous and scheduled. You provide updates through required regulatory filings and voluntary calls. For example, the results for the third quarter ended September 30, 2025, were announced on November 7, 2025, via a press release and a subsequent earnings call. You also file comprehensive reports, such as the 10-K filed on February 21, 2025, which detailed the 201,019,097 shares of common stock outstanding as of February 7, 2025. These documents serve as the official record of your performance and strategy.

You keep investors informed through specific channels:

• Earnings calls, like the one on November 7, 2025, for Q3 2025 results.
• SEC filings, including the 10-K and Proxy Statement for the 2025 Annual Meeting.
• Email alerts, where you promise to treat subscriber data with respect and not share it with third parties.
• Archived webcasts of calls, ensuring transparency after the live event.

Finance: draft 13-week cash view by Friday.

Sunstone Hotel Investors, Inc. (SHO) - Canvas Business Model: Channels

You're looking at how Sunstone Hotel Investors, Inc. gets its rooms and services in front of customers, which is critical for a lodging REIT. This isn't just about a website; it's about the entire ecosystem connecting their 14 hotels, comprised of 6,999 rooms as of September 30, 2025, to paying guests and capital markets.

The primary revenue driver, total TTM revenue as of September 30, 2025, stood at $938 million. The channels are segmented by the type of customer-transient leisure/business, group/convention, and direct investor/stakeholder engagement.

For the transient and group bookings, which drive the core hotel revenue, the company relies on a mix of brand platforms, third-party digital channels, and direct sales efforts. The CEO noted that for the following year (2026), they were tracking roughly 80% of room nights on the books, which is consistent with the prior year's pace. This forward-looking group pace is a direct indicator of the success of the hotel-level sales teams.

The transient segment showed acceleration; the company was hitting a target of roughly 1,000 transient rooms booked a week in Q3 2025. The reliance on these channels is reflected in the operational metrics:

• Total Portfolio RevPAR for Q3 2025 was $216.12.
• Q3 2025 Occupancy rate stood at 70.3%.
• Q3 2025 Average Daily Rate (ADR) was $307.43.

The structure of how rooms are sold is managed through a combination of systems and dedicated teams:

Channel Category	Specific Mechanism/Data Point	Latest Available Metric/Value
Brand Reservation Platforms/GDS	Forward Group Booking Pace (Room Nights)	Approximately 80% for 2026 (as of Q3 2025)
Hotel-Level Sales Teams	Group Production Sentiment (Q3 2025)	Described as 'really good'
Online Travel Agencies (OTAs)	Reliance Context (Industry Benchmark)	Split almost evenly with Direct through digital marketing (Industry-wide 2023-2024 data)
Direct Property-Level Outlets	Q1 2025 Food and Beverage Revenue	$67.1 million
Corporate Website (Direct Bookings)	Transient Booking Pace (Weekly Volume)	Roughly 1,000 rooms booked a week (as of Q3 2025)

Global distribution systems and brand reservation platforms are the backbone for securing large, contracted business, evidenced by the strong group production mentioned by management. The company's hotels operate under major brands like Marriott, Hilton, and Hyatt, meaning their brand.com and associated central reservation systems are key direct-to-consumer touchpoints. The success of these systems is tied to the overall room night pace secured well in advance.

Hotel-level sales teams are crucial for the group and convention segment, which is vital for stabilizing occupancy during shoulder seasons. The strong group production noted in Q3 2025, with corporate demand extending into 2027 and 2028, confirms the effectiveness of these direct sales efforts in securing future revenue streams.

Online travel agencies (OTAs) remain a necessary component for capturing transient demand, though the focus for hotel REITs is often on driving down the blended cost of acquisition by prioritizing direct channels. While specific OTA revenue percentage isn't public, industry trends suggest a significant portion of transient business flows through these third-party sites.

The corporate website and Investor Relations portal serve as the primary channel for capital markets communication. The Investor Relations section is accessible at www.sunstonehotels.com, where filings like the Q3 2025 results were posted. This channel is essential for maintaining transparency with stockholders, especially given the company's active share repurchase program, which saw $100.6 million spent year-to-date through November 6, 2025.

Direct property-level food and beverage outlets are a distinct channel for capturing ancillary spend, which contributes directly to the top line. For instance, in the first quarter of 2025, Food and Beverage Revenue reached $67.1 million, representing a 9.4% increase year-over-year. This demonstrates the importance of on-property amenities as a direct revenue channel separate from room bookings.

Sunstone Hotel Investors, Inc. (SHO) - Canvas Business Model: Customer Segments

You're looking at the core groups Sunstone Hotel Investors, Inc. serves across its portfolio of upper upscale and luxury full-service hotels. Here's the quick math on who is staying in their rooms and who is buying their stock.

Sunstone Hotel Investors, Inc. owns a portfolio consisting of 14 hotels with a total of 6,999 rooms as of the third quarter of 2025. The properties are concentrated in California, Florida, and Hawaii.

Metric	Value (Q3 2025)	Context
Total Portfolio RevPAR	$216.12	Revenue Per Available Room
Average Daily Rate (ADR)	$307.43	Average room price
Occupancy	70.3%	Percentage of rooms sold
Total Assets	$3.0 billion	As of September 30, 2025
Trailing 12-Month Revenue	$938M	As of September 30, 2025

Corporate group and business travelers in urban markets

This segment drives demand in the urban markets where Sunstone Hotel Investors, Inc. operates. In the second quarter of 2025, this group provided solid demand that helped performance. The portfolio includes properties operating under brands like Marriott, Hilton, and Hyatt.

Convention attendees in large urban centers (e.g., San Francisco)

The convention business is a key driver for certain urban assets. Stronger performance in San Francisco during the third quarter of 2025 helped offset other market headwinds. The company expects Total Portfolio RevPAR Growth for the full year 2025 to be between +7.0% and +10.0%.

Affluent leisure travelers in resort destinations (e.g., Hawaii, Florida)

Resort destinations like Hawaii and Florida host higher-rated leisure guests. The company is investing capital into these resort assets, including room renovations at Wailea Beach Resort. The average daily rate across the entire portfolio in Q3 2025 was $307.43.

Institutional and individual public equity investors (REIT stockholders)

This segment provides the capital base for Sunstone Hotel Investors, Inc. The company's market capitalization as of November 3, 2025, was $1.71B with 190M shares outstanding. Sunstone Hotel Investors, Inc. has shown a commitment to this group through buybacks, repurchasing 11,392,876 shares year-to-date through Q3 2025 for a total of $100.6 million. The stock price on December 3, 2025, was $9.19.

Price-sensitive leisure travelers (a current headwind in late 2025)

This group is currently presenting a challenge. Management noted a more price-sensitive leisure traveler in Q3 2025. Weaker leisure demand was specifically anticipated in Maui for the second half of the year.

• Q3 2025 Net Income was $1.3 million.
• Q3 2025 Adjusted EBITDAre was $50.1 million.
• Adjusted FFO per diluted share for Q3 2025 was $0.17.

Sunstone Hotel Investors, Inc. (SHO) - Canvas Business Model: Cost Structure

You're looking at the hard costs that Sunstone Hotel Investors, Inc. faces to keep its portfolio running and growing as of late 2025. For a real estate investment trust (REIT) focused on hotels, the cost structure is heavily weighted toward property operations and debt service. Honestly, understanding these line items is key to seeing where the cash actually goes before it gets to shareholders.

Property-Level Operating Expenses

The bulk of the expense comes directly from running the hotels. These are the day-to-day costs for labor, keeping the lights on, and paying local taxes. For the third quarter ending September 30, 2025, Sunstone Hotel Investors, Inc. reported total Operating Expenses of $217.43M. This category bundles many of the variable and fixed costs associated with keeping the properties operational.

Other significant property-related costs that hit the income statement include:

• Cost of Sales: $128.29M for Q3 2025.
• Property-level general and administrative expenses include payroll, benefits, contract fees, and consulting fees.
• Non-hotel operating expenses, net, include corporate-level property taxes, ground lease, and insurance for the period.

Corporate Overhead Expense

This is the cost of running the corporate office, separate from the hotel floors. For the full year 2025, Sunstone Hotel Investors, Inc. maintained its guidance for corporate overhead expense (excluding deferred stock amortization and management transition costs) in the range of approximately $20 million to $21 million. This figure was noted as unchanged from the Company's prior estimate.

Interest Expense on Total Debt

Servicing the debt load is a major fixed cost. As of September 30, 2025, Sunstone Hotel Investors, Inc. reported total debt of $930.0 million. To service this, the full-year 2025 guidance for interest expense was projected to be approximately $51 million to $54 million, which includes about $4 million in amortization of deferred financing costs and $1 million in noncash interest expense on derivatives.

Capital Expenditure for Renovations

Active ownership means spending capital to keep assets competitive. During the first nine months of 2025, Sunstone Hotel Investors, Inc. invested $73.7 million into its portfolio. The company expected the total investment for the full year 2025 to be in the range of $80 million to $100 million. This spending is largely focused on major projects like the completion of the Andaz Miami Beach transformation and room renovations at Wailea Beach Resort.

Brand Management and Franchise Fees

These are payments made to the major hotel brands for using their names, reservation systems, and standards. These fees are a direct cost tied to hotel revenue performance. Management agreements require Sunstone Hotel Investors, Inc. to pay third-party managers a basic management fee that currently ranges between 2.5 % and 3.0 % of the total revenue of the managed hotels monthly. On top of that, incentive management fees may be due if certain operating thresholds are met.

Here is a quick look at the key financial figures related to the cost structure:

Cost Component	Financial Number/Metric	Period/Context
Total Debt	$930.0 million	As of September 30, 2025
Corporate Overhead Guidance	$20 million to $21 million	Full Year 2025 Guidance
Property-Level Operating Expenses	$217.43 million	Q3 2025
Capital Investment YTD	$73.7 million	Year-to-date through September 30, 2025
Basic Management Fee Range	2.5 % to 3.0 %	Of total revenue of managed hotels
Estimated Full Year Interest Expense Range	$51 million to $54 million	Full Year 2025 Guidance

Finance: draft 13-week cash view by Friday.

Sunstone Hotel Investors, Inc. (SHO) - Canvas Business Model: Revenue Streams

Sunstone Hotel Investors, Inc.'s revenue streams are anchored in its upscale hotel portfolio operations, supplemented by strategic capital recycling activities.

Room Revenue remains the primary engine, showing growth in the first quarter of 2025. For the period ended March 31, 2025, Room Revenue reached $144.9 million, marking a 6.7% increase year-over-year.

Food and Beverage Revenue also demonstrated strength early in 2025. This segment generated $67.1 million in Q1 2025, which was an increase of 9.4% compared to the first quarter of the prior year.

The core operating revenues for the first quarter of 2025 can be summarized as follows:

Revenue Component	Q1 2025 Amount (Millions USD)	Year-over-Year Change
Room Revenue	$144.9	6.7% increase
Food and Beverage Revenue	$67.1	9.4% increase
Total Revenues (Q1 2025)	$234.1	7.8% increase

Other operating revenue, which includes items such as cancellation or attrition fees, contributes to the total top line. Total Revenues for Q1 2025 were reported at $234.1 million or $234.06 million, with the remainder after Room and F&B being classified in this category or other minor sources.

Asset sales/Capital recycling proceeds provide significant, though less frequent, infusions of cash. Sunstone Hotel Investors, Inc. executed the sale of the Hilton New Orleans St. Charles in June 2025 for a contractual gross sale price of $47.0 million. This capital recycling is part of the strategy to redeploy capital into share repurchases or new investments.

The forward-looking view on profitability from operations is captured in the guidance:

• Full-year 2025 Adjusted EBITDAre guidance is set between $226 million and $240 million.
• The Q2 2025 Adjusted EBITDAre was reported at $72.7 million.
• The Q3 2025 Adjusted EBITDAre was reported at $50.1 million or $50 million.
• Full-year 2025 Adjusted FFO per diluted share is projected to range from $0.80 to $0.87.
• As of June 30, 2025, the Company had $144.9 million of cash and cash equivalents.