(SHO) Sunstone Hotel Investors - Ratings and Ratios

Exchange: NYSE • Country: United States • Currency: USD • Type: Common Stock • ISIN: US8678921011

SHO: Hotels, Resorts, Lodging, Accommodations, Real Estate

Sunstone Hotel Investors, Inc. (NYSE: SHO) is a lodging-focused real estate investment trust (REIT) that owns a portfolio of 15 hotels totaling 7,255 rooms. These properties are primarily operated under well-known, nationally recognized hospitality brands, which helps maintain occupancy rates and revenue stability. Sunstones core strategy revolves around acquiring, actively managing, and strategically disposing of high-quality hotel and resort assets in desirable locations. Their approach is designed to deliver long-term value to stakeholders by capitalizing on the upside potential of their properties while mitigating risks inherent in the lodging sector.

The companys portfolio is concentrated in major markets with strong demand drivers, such as urban centers and resort destinations, which positions them to benefit from both leisure and business travel trends. Sunstones management team employs an active ownership strategy, which includes renovating and repositioning properties to enhance their competitive positioning and profitability. This hands-on approach allows them to optimize operational efficiency and capitalize on market opportunities as they arise.

From a financial perspective, Sunstone Hotel Investors operates with a market capitalization of approximately $2.276 billion, placing it in the mid-cap category. The stock currently trades at a price-to-earnings (P/E) ratio of 15.11, which is relatively in line with industry averages, though the forward P/E of 98.04 suggests that investors are pricing in significant future growth. The price-to-book (P/B) ratio of 1.23 indicates that the market values the company slightly above its book value, while the price-to-sales (P/S) ratio of 2.50 reflects a reasonable valuation relative to its revenue generation.

For investors and fund managers, Sunstones focus on branded, upper-upscale to luxury hotels in high-barrier-to-entry markets presents a compelling investment thesis. The companys ability to navigate cyclical market conditions, coupled with its disciplined approach to capital allocation, makes it a notable player in the Hotel & Resort REITs sub-industry. However, like all lodging REITs, Sunstone remains sensitive to broader economic trends, consumer discretionary spending, and the competitive dynamics of the hospitality industry.

Additional Sources for SHO Stock

SHO Stock Overview

Market Cap in USD 2,109m
Sector Real Estate
Industry REIT - Hotel & Motel
GiC Sub-Industry Hotel & Resort REITs
IPO / Inception 1995-08-10

SHO Stock Ratings

Growth 5y 25.8%
Fundamental -3.76%
Dividend 58.8%
Rel. Strength Industry -17.1
Analysts 3.25/5
Fair Price Momentum 9.06 USD
Fair Price DCF 16.36 USD

SHO Dividends

Dividend Yield 12m 3.39%
Yield on Cost 5y 4.77%
Annual Growth 5y 46.72%
Payout Consistency 58.5%

SHO Growth Ratios

Growth Correlation 3m -95.8%
Growth Correlation 12m 44.1%
Growth Correlation 5y 14.8%
CAGR 5y 6.50%
CAGR/Max DD 5y 0.19
Sharpe Ratio 12m -0.16
Alpha -19.67
Beta 1.01
Volatility 30.67%
Current Volume 1418.8k
Average Volume 20d 2026.2k
What is the price of SHO stocks?
As of March 16, 2025, the stock is trading at USD 9.77 with a total of 1,418,829 shares traded.
Over the past week, the price has changed by -7.48%, over one month by -12.77%, over three months by -20.22% and over the past year by -8.93%.
Is Sunstone Hotel Investors a good stock to buy?
Neither. Based on ValueRay Fundamental Analyses, Sunstone Hotel Investors is currently (March 2025) neither a good nor a bad stock to buy. It has a ValueRay Fundamental Rating of -3.76 and therefor a neutral outlook according to the companies health.
Based on ValueRays Analyses, Dividends and Discounted-Cash-Flow, the Fair Value of SHO as of March 2025 is 9.06. This means that SHO is currently overvalued and has a potential downside of -7.27%.
Is SHO a buy, sell or hold?
Sunstone Hotel Investors has received a consensus analysts rating of 3.25. Therefor, it is recommend to hold SHO.
  • Strong Buy: 2
  • Buy: 0
  • Hold: 9
  • Sell: 1
  • Strong Sell: 0
What are the forecast for SHO stock price target?
According to ValueRays Forecast Model, SHO Sunstone Hotel Investors will be worth about 9.9 in March 2026. The stock is currently trading at 9.77. This means that the stock has a potential upside of +1.33%.
Issuer Forecast Upside
Wallstreet Target Price 11.5 17.3%
Analysts Target Price 11.5 18.1%
ValueRay Target Price 9.9 1.3%