Sunstone Hotel Investors Inc (SHO) Fair Value & Analysis
Real Estate · US · Market cap $2.2B · ISIN US8678921011
What is Sunstone Hotel Investors Inc really worth?
Sunstone Hotel Investors Inc
SHO · US
A solid business, but trading 377% above our fair value of $2.31.
Strengths
Risks
For context
Fair value as of: Sep 5, 2026
From 16 valuation models · updated today
Share price −5.2% over the past month.
What runs behind every stock
69 individual criteria per stock, every one traceable See the method →
What matters now
- The price sits above even our optimistic bull case ($4.85). The favourable scenario is already priced in.
- Solid but not exceptional quality (53/100) and above fair value, neither a clear bargain nor a standout compounder.
- A fairly wide model range ($2.31 to $4.85) leaves room in how you read the outcome.
- As a real-estate business, asset- and dividend-based methods carry more weight here than a standard DCF.
Price vs Fair Value (5 years)
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 5, 2026.
How to read this chart
60‑month range $7.42 – $11.92 · fair‑value band $2.31 – $4.85 · the $11.01 price screens above the $2.31 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Sep 5, 2026.
Analysis
Sunstone Hotel Investors Inc (SHO) currently trades at $11.01, while our model-based Fair Value estimate is $2.31, implying the stock looks roughly 376.6% overvalued today. The Quality Score stands at 53/100 (solid quality), in the Real Estate sector. Bull case: the Asset-Based group reads highest at a median of $6.99 per share, and 2 of the 16 models we run sit above the $11.01 price. Bear case: the Growth DCF group reads lowest at $1.64, and 14 of the 16 models stay below the price. Evidence for this calculation is high.
Over the trailing twelve months, Sunstone Hotel Investors Inc generated revenue of $986M at a net margin of 3.8%. Revenue grew 11.0% year over year. It earns a return on equity of 1.9%. Net debt stands at $816M. Fundamentals as of Sep 5, 2026
Our scenario range runs from $2.31 (bear case) to $4.85 (bull case); at $11.01, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 9% below its 52-week high and 34% above its 52-week low, currently above its 200-day average. For context, the median of 10 Real Estate peers we cover trades at −28% fair-value upside, at −79%, SHO screens richer than that median.
Fair Value models
Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.
All 16 models by family
Widest divergence: Asset-Based ($6.99) versus Growth DCF ($1.64). Highest evidence: Residual Income (76).
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Key figures & financial health
More key figures
Figures from reported company fundamentals · as of Sep 5, 2026. TTM = trailing twelve months.
Quality Score breakdown
Of which business quality 53 · Market factors (momentum, volatility) 62
Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.
All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.
About the company
Sunstone Hotel Investors, Inc. is a lodging real estate investment trust that, as of date of this release, owns 14 hotels comprised of 7,000 rooms. The majority of which are operated under nationally recognized brands.
Full company description
Sunstone Hotel Investors, Inc. is a lodging real estate investment trust that, as of date of this release, owns 14 hotels comprised of 7,000 rooms. The majority of which are operated under nationally recognized brands. Sunstone's strategy is to create long-term stakeholder value through the acquisition, active ownership, and disposition of well-located hotel and resort real estate. Sunstone Hotel Investors, Inc. was incorporated in 1995 and is based in Aliso Viejo, United States.
Company description, as reported by the company or data provider.
Revenue & earnings trend
FY2021 – FY2025 · reported fiscal years
Sunstone Hotel Investors Inc reported revenue of $960M in FY2025 versus $509M in FY2021, a compound +17.2%/yr. Reported net income was $24.6M in FY2025, compounding −8.0%/yr from FY2021.
of which total revenue −2.5 % · buybacks/dilution +0.2 %
Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).
SHO screens 377% overvalued. Compare with Host Hotels & Resorts, Inc →
Peer Group
REIT - Hotel & Motel · 35 stocks
How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.
Valuation Multiples vs REIT - Hotel & Motel median · lower = cheaper
Strength profile in five axes (Snowflake)
Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.
VALUE 0: the price sits above our fair-value range.
Values & ESG
Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.
Similar stocks
10 more REIT - Hotel & Motel stocks, each showing price versus our Fair Value estimate (as of Sep 5, 2026).
| Stock | Price | Fair Value | vs Fair Value |
|---|---|---|---|
| Host Hotels & Resorts, Inc HST | $22.81 | $15.81 | −31% |
| Ryman Hospitality Properties, Inc RHP | $129.33 | $47.68 | −63% |
| COVH COVH | €22.50 | €21.42 | −5% |
| Apple Hospitality REIT, Inc APLE | $16.36 | $12.63 | −23% |
| Park Hotels & Resorts inc. PK | $14.85 | $19.87 | +34% |
| DiamondRock Hospitality Company DRH | $12.36 | $8.43 | −32% |
| Pebblebrook Hotel Trust PEB | $18.48 | $25.37 | +37% |
| Xenia Hotels & Resorts, Inc XHR | $19.05 | $11.54 | −39% |
| RLJ Lodging Trust (RLJ) RLJ | $11.46 | $8.20 | −28% |
| Service Properties Trust SVC | $7.61 | $2.44 | −68% |
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