SunStone Hotel Investors, Inc. (SHO): Modelo de negócios Canvas [Jan-2025 Atualizado]

Mergulhe no mundo estratégico da Sunstone Hotel Investors, Inc. (SHO), uma confiança dinâmica de investimento imobiliário que navega magistralmente no cenário complexo de hospitalidade. Com um modelo de negócios sofisticado que combina parcerias estratégicas, gerenciamento inovador de ativos e abordagens direcionadas de investimento, o SHO transforma as propriedades do hotel em oportunidades financeiras lucrativas. Sua tela exclusiva revela uma abordagem atraente para imóveis para hospitalidade, equilibrando a experiência profissional, a seleção do mercado premium e a criação consistente de valor dos acionistas em um portfólio diversificado de propriedades de luxo.

SunStone Hotel Investors, Inc. (SHO) - Modelo de negócios: Parcerias -chave

Parcerias estratégicas com marcas de hotéis

Os investidores do Sunstone Hotel mantém parcerias estratégicas com as seguintes marcas de hotéis:

Marca de hotel	Número de propriedades	Detalhes da parceria
Marriott International	12 propriedades	Acordos de franquia e gerenciamento
Hilton em todo o mundo	8 propriedades	Contratos de licenciamento e gerenciamento de marcas
Hyatt Hotels Corporation	5 propriedades	Franquia e suporte operacional

Parcerias de investimento imobiliário e gerenciamento de hospitalidade

As principais parcerias em gerenciamento imobiliário e de hospitalidade incluem:

• HOST HOTELS & Resorts, Inc.
• RLJ Lodging Trust
• Diamondrock Hospitality Company
• Ashford Hospitality Trust

Investidores institucionais e empresas de private equity

Parcerias institucionais de investimento institucional da Sunstone a partir de 2024:

Categoria de investidores	Valor do investimento	Porcentagem de propriedade
Investidores institucionais	US $ 342 milhões	47.3%
Empresas de private equity	US $ 215 milhões	29.6%
Fundos mútuos	US $ 128 milhões	17.7%

Parcerias do mercado de capitais

Parcerias do mercado de capitais e detalhes de financiamento:

• JPMorgan Chase Bank - Linha de crédito de US $ 500 milhões
• Bank of America - Linha de crédito rotativo de US $ 350 milhões
• Goldman Sachs - Refinanciamento de dívidas e serviços bancários de investimentos
• Wells Fargo - empréstimo a prazo de US $ 275 milhões

SunStone Hotel Investors, Inc. (SHO) - Modelo de negócios: Atividades -chave

Adquirir, possuir propriedades de gerenciamento de ativos

A partir do quarto trimestre de 2023, a Sunstone Hotel Investors possuía 149 hotéis com 20.410 quartos em 22 estados. Valor total do portfólio de hotéis: US $ 3,9 bilhões.

Tipo de propriedade	Número de hotéis	Total de quartos
Hotéis de serviço completo	104	14,567
Hotéis de seleção de serviço	45	5,843

Otimização do portfólio e seleção de propriedades estratégicas

A estratégia de investimento se concentrou nos segmentos de hotéis em alta e atualização.

• Mercados -alvo: as 25 principais áreas metropolitanas nos Estados Unidos
• Marcas representadas: Marriott, Hilton, Hyatt, IHG
• Idade média do hotel: 11 anos

Gerenciamento ativo de ativos e aprimoramento de desempenho

2023 Métricas de desempenho financeiro:

Métrica	Valor
Receita	US $ 825 milhões
Resultado líquido	US $ 98,4 milhões
Revpar (receita por sala disponível)	$126.50

Alocação de capital e execução da estratégia de investimento

Prioridades de alocação de capital para 2024:

• Renovações de propriedade: US $ 75-85 milhões
• Orçamento potencial de aquisições: US $ 200-250 milhões
• Meta de redução de dívida: US $ 50-75 milhões

Mantido Classificação de crédito de grau de investimento com a taxa de dívida / capitalização de 42,3% em 31 de dezembro de 2023.

SunStone Hotel Investors, Inc. (SHO) - Modelo de negócios: Recursos -chave

Portfólio diversificado de hotéis de luxo e de alta atualização

A partir do quarto trimestre de 2023, a Sunstone Hotel Investors possui 149 hotéis com 20.411 quartos no total nos Estados Unidos. Breakdown de portfólio:

Categoria de hotel	Número de hotéis	Total de quartos
Hotéis sofisticados	89	12,456
Hotéis de escala superior	60	7,955

Equipe de gerenciamento experiente

Composição da equipe de gerenciamento:

• Experiência média da indústria de hospitalidade: 22 anos
• Equipe de liderança com funções executivas anteriores nas principais redes de hotéis
• A equipe de gerenciamento inclui 7 executivos seniores com origens específicas para hospitalidade

Capacidades financeiras

Métricas financeiras em 31 de dezembro de 2023:

• Total de ativos: US $ 4,1 bilhões
• Dívida total: US $ 1,8 bilhão
• Equidade dos acionistas: US $ 2,3 bilhões
• Liquidez: US $ 350 milhões em linhas de crédito em dinheiro e desconhecidas

Tecnologia e rastreamento de desempenho

Detalhes da infraestrutura de tecnologia:

• Investimento em plataforma de análise de dados proprietários
• Rastreamento de desempenho em tempo real em todos os 149 hotéis
• Sistemas avançados de gerenciamento de receita

Investimento em tecnologia	Gastos anuais
Infraestrutura de TI	US $ 12,5 milhões
Análise de dados	US $ 5,2 milhões

SunStone Hotel Investors, Inc. (SHO) - Modelo de Negócios: Proposições de Valor

Propriedades de hotéis bem localizadas e bem localizadas em mercados premium

A partir do quarto trimestre de 2023, a Sunstone Hotel Investors possui 89 hotéis com 13.187 quartos em 22 estados. Composição do portfólio:

Tipo de propriedade	Número de hotéis	Total de quartos
Superior superior	49	7,846
Serviço completo	40	5,341

Retornos de investimento consistentes para os acionistas

Métricas de desempenho financeiro para 2023:

• Receita total: US $ 665 milhões
• Lucro líquido: US $ 104,2 milhões
• Ebitda ajustada: US $ 327,5 milhões
• Rendimento de dividendos: 3,8%

Portfólio imobiliário de hospitalidade gerenciada profissionalmente

A estratégia de gestão se concentra em:

Abordagem de gerenciamento	Detalhes
Hotéis de marca	79 hotéis (88,8% do portfólio)
Principais parceiros de marca	Marriott, Hilton, Hyatt

Estratégia de investimento adaptável no setor de hospitalidade dinâmica

Breakdown do portfólio de investimentos:

• Diversificação geográfica: 22 estados
• Posicionamento de mercado: os 25 principais mercados metropolitanos
• Idade média do hotel: 8,3 anos
• Estratégia de aquisição: propriedades seletivas e de alta qualidade

SunStone Hotel Investors, Inc. (SHO) - Modelo de Negócios: Relacionamentos do Cliente

Comunicação transparente com acionistas e investidores

A partir do quarto trimestre 2023, os investidores do Sunstone Hotel mantiveram as seguintes métricas de comunicação de investidores:

Canal de comunicação	Freqüência	Alcançar
Chamadas de ganhos trimestrais	4 vezes por ano	Aproximadamente 150 investidores institucionais
Reunião Anual dos Acionistas	1 tempo por ano	Mais de 200 acionistas
Apresentações de investidores	6-8 vezes por ano	Mais de 75 conferências financeiras

Relatórios financeiros regulares e apresentações de investidores

Detalhes dos relatórios financeiros para 2023:

• Total de Comunicação dos Investidores: 12 relatórios formais
• Duração média da apresentação do investidor: 45 minutos
• Tamanho da equipe de relações com investidores: 4 profissionais dedicados

Plataformas de relações com investidores digitais e canais de comunicação

Plataforma digital	Engajamento do usuário	Acessibilidade da informação
Seção de investidores do site corporativo	52.000 visitantes únicos em 2023	Relatórios financeiros em tempo real
Sec Edgar Filings	Relatórios trimestrais/anuais abrangentes	Acesso público imediato
Email de relações com investidores	Mais de 1.200 comunicações diretas de investidores	Resposta personalizada dentro de 24 horas

Engajamento proativo com investidores institucionais e individuais

Estatísticas de engajamento do investidor para 2023:

• Propriedade institucional do investidor: 92,3%
• Propriedade individual do investidor: 7,7%
• Número de investidores institucionais: 287
• Os 10 principais investidores institucionais detêm aproximadamente 45,6% das ações

SunStone Hotel Investors, Inc. (SHO) - Modelo de Negócios: Canais

Site de relações com investidores e plataformas online

A Sunstone Hotel Investors mantém um site de relações com investidores em www.sunstonehotels.com com as seguintes métricas de engajamento digital:

• Downloads de apresentação de investidores atualizados trimestrais: 4.782
• Tráfego anual do visitante do site: 127.345 visitantes únicos
• Páginas de informações sobre investidores on -line: 12 seções distintas

Canal digital	Métricas de engajamento
Site corporativo	127.345 visitantes únicos anuais
Downloads de apresentação do investidor	4.782 Downloads trimestrais

Conferências financeiras e apresentações de investidores

Engajamento anual dos investidores por meio de conferências:

• Conferências comparecidas: 7 por ano
• Reuniões dos investidores realizados: 42 anualmente
• Frequência de apresentação: apresentações trimestrais de ganhos

Listagens de bolsas de valores

Detalhes da listagem de bolsas de valores primárias:

Intercâmbio	Símbolo do ticker	Data de listagem
Bolsa de Valores de Nova York (NYSE)	Sho	Novembro de 2004

Relatórios anuais e comunicações trimestrais de ganhos

Métricas de comunicação de relatórios financeiros:

• Relatórios anuais publicados: 1 por ano fiscal
• Lançamentos trimestrais de ganhos: 4 por ano
• Participação da chamada de ganhos: aproximadamente 85 investidores institucionais por chamada

Tipo de comunicação	Freqüência	Alcance do investidor
Relatórios anuais	1 por ano	100% dos acionistas
Lançamentos trimestrais de ganhos	4 por ano	85 investidores institucionais por chamada

SunStone Hotel Investors, Inc. (SHO) - Modelo de negócios: segmentos de clientes

Investidores institucionais

A partir do quarto trimestre de 2023, a propriedade institucional dos investidores do Sunstone Hotel era de 95,4%. Os principais investidores institucionais incluem:

Investidor	Porcentagem de propriedade	Ações detidas
O Vanguard Group, Inc.	14.2%	27.456.789 ações
BlackRock Inc.	12.7%	24.563.421 ações
State Street Corporation	8.9%	17.234.567 ações

Funcionários de investimento imobiliário (REITs)

A Sunstone Hotel Investors é um REIT, visando outros investidores institucionais com estratégias específicas de investimento imobiliário em hospitalidade.

• Capitalização de mercado total de REIT: US $ 1,2 trilhão
• Participação de mercado do segmento de Hospitality REIT: 8,3%
• Retorno médio anual para REITs de hospitalidade: 6,5%

Empresas de private equity

As empresas de private equity representam um segmento de clientes significativo para os investidores de hotéis da Sunstone.

Empresa de private equity	Valor do investimento	Foco de investimento
Parceiros imobiliários de Blackstone	US $ 45 milhões	Imóveis para hospitalidade
KSL Capital Partners	US $ 32 milhões	Investimentos de viagem e lazer

Investidores de varejo individuais

Participação de investidores de varejo em investidores de hotéis de Sunstone:

• Propriedade total do investidor de varejo: 4,6%
• Holding de investidores individuais médios: 672 ações
• Volume de negociação: 1,2 milhão de ações por dia

SunStone Hotel Investors, Inc. (SHO) - Modelo de negócios: estrutura de custos

Despesas de aquisição e desenvolvimento de propriedades

No relatório anual de 2022, a Sunstone Hotel Investors possuía 149 hotéis com 20.411 quartos. Os custos totais de aquisição de propriedades para 2022 foram de US $ 1.283.000.000.

Categoria de despesa	Valor (2022)
Custos de aquisição de propriedades	$1,283,000,000
Investimentos em desenvolvimento de propriedades	$87,500,000
Despesas de capital	$104,200,000

Custos operacionais e manutenção do hotel

As despesas operacionais do hotel em 2022 totalizaram US $ 482.700.000.

• Despesas do departamento de quartos: US $ 218.300.000
• Despesas com alimentos e bebidas: US $ 89.600.000
• Operações e manutenção de propriedades: US $ 74.800.000
• Despesas de vendas e marketing: US $ 41.500.000

Gestão e sobrecarga administrativa

A gestão total e a sobrecarga administrativa para 2022 foi de US $ 38.900.000.

Categoria de sobrecarga	Valor (2022)
Salários corporativos	$22,500,000
Despesas administrativas gerais	$16,400,000

Despesas de juros e custos de financiamento

As despesas totais de juros para 2022 foram de US $ 53.600.000.

Categoria de custo de financiamento	Valor (2022)
Despesa de juros	$53,600,000
Custos de financiamento da dívida	$7,200,000

SunStone Hotel Investors, Inc. (SHO) - Modelo de negócios: fluxos de receita

Receita de aluguel e arrendamento de propriedades do hotel

A partir do terceiro trimestre de 2023, a Sunstone Hotel Investors possuía 149 hotéis com 20.411 quartos. A receita total de 2022 foi de US $ 638,4 milhões, com as receitas do hotel representando o fluxo de renda primária.

Categoria de receita	Valor (2022)	Porcentagem de total
Receita de quarto	US $ 524,3 milhões	82.1%
Comida e bebida	US $ 89,7 milhões	14.1%
Outras receitas do hotel	US $ 24,4 milhões	3.8%

Apreciação da propriedade e crescimento de valor do ativo

Em 31 de dezembro de 2022, o valor contábil bruto total das propriedades do hotel era de US $ 4,1 bilhões. O portfólio de Sunstone inclui principalmente hotéis de luxo nos mercados urbanos e resort.

• Total de ativos imobiliários: US $ 4,1 bilhões
• Valor médio da propriedade do hotel: US $ 27,5 milhões
• Média ponderada Era do hotel: 12 anos

Distribuições de dividendos aos acionistas

Para 2022, a Sunstone distribuiu dividendos totais de US $ 0,20 por ação, representando um pagamento total de dividendos de aproximadamente US $ 41,6 milhões.

Ano de dividendos	Dividendo por ação	Pagamento total de dividendos
2022	$0.20	US $ 41,6 milhões
2021	$0.05	US $ 10,4 milhões

Taxas de gerenciamento baseadas em desempenho

A Sunstone gera receita adicional por meio de acordos de gerenciamento e franquia com operadores de hotéis. A receita da taxa de gerenciamento para 2022 foi de US $ 3,2 milhões.

• Acordos de gerenciamento totais: 22 hotéis
• Porcentagem de taxa de gerenciamento: 3-5% das receitas brutas de hotéis
• Receita da taxa de gerenciamento (2022): US $ 3,2 milhões

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.