Sunstone Hotel Investors
SHO on NYSE. Sunstone Hotel Investors sells hotel rooms and related services to travelers and guests. Market value $2.1bn.
Price checks use the past 12 months to June 2026. Quality checks use five annual reports, the latest for the year to December 2025.
The company doesn't report operating profit, so we work it out from pre-tax profit and interest.
Should I look at this?
Good business, but not cheap right now
Why it could be worth it
See cheaper Retail & consumer stocks on the list
This is not advice. Check the numbers below.
For every $100 of what the whole company costs, it produced $4.70 of spare cash in the past 12 months. A savings account pays about $4.
You pay 28.7 years of operating profit for the business. The average large US company costs around 18.
Each dollar kept in the business earns 3 cents a year. Above 10 is good.
Quality score: 76 of 100. Price score: 39 of 100. Our list needs 70 on quality and 60 on price.
$11.22 a share, 29% above its 1-year low
Over the past year the price has ranged from $8.69 to $12.07.
Dividend: 4.1% a year
Paid every year for at least 5 years
Payouts have jumped around in recent years, so this may not repeat.
Prices from Tuesday’s close (6 October).
Five years of cash, in billions
| Revenue | |||||
| Revenue | $509m | $912m | $986m | $906m | $960m |
| Operating margin | |||||
| Operating margin | 12.6% | 13.5% | 26.7% | 10.2% | 8.1% |
| Debt to equity | |||||
| Debt to equity | 0.29 | 0.39 | 0.38 | 0.40 | 0.48 |
| Shares outstanding | |||||
| Shares outstanding | 0.21bn | 0.21bn | 0.20bn | 0.19bn | 0.19bn |
Health checks
- Free cash flow positive4 of 5 years
- Accounting looks honest (Beneish)Not enough data
- Financial strength (Piotroski)6 of 7 checks we could run
- Profit backed by cash (accruals)Yes
- Debt0.48× equity
- Revenue growth, five yearsStrong, 29.1% a year
- Buying back its own sharesYes, 12% fewer since 2021
The quarter to June 2026
How the business did, compared with the same quarter a year earlier.
- Sales: $277 million last quarter, up 7% on a year ago.
- Profit: $26 million, up 281% on a year ago.
- Spare cash over the past 12 months: $98 million, up from $23 million.
- 5% fewer shares than a year ago. Each share owns a bit more of the company.
- Debt is $886 million more than cash, up from $798 million a year ago.
- Sales grew on a year ago in each of the last 4 quarters.
| Quarter to | Amount |
|---|---|
| September 2024 | $226m |
| December 2024 | $215m |
| March 2025 | $234m |
| June 2025 | $260m |
| September 2025 | $229m |
| December 2025 | $237m |
| March 2026 | $260m |
| June 2026 | $277m |
| Quarter to | Amount |
|---|---|
| September 2024 | -$744,000 |
| December 2024 | -$3m |
| March 2025 | $1m |
| June 2025 | $7m |
| September 2025 | -$3m |
| December 2025 | $3m |
| March 2026 | $16m |
| June 2026 | $26m |
From the company's quarterly reports to the SEC.
Dates
- Next results (estimated)
- n/a
- Last annual report (10-K)
- 27 February 2026
- Next quarterly (estimated, 10-Q)
- 5 November 2026
Who owns it
2 long-term investors we follow own it, up from 1 last quarter. 274 funds in all.
| Fund | Value | Share of that fund | Change |
|---|---|---|---|
| Davis Selected AdvisersChris Davis | $10m | <0.1% | Cut |
| GMOJeremy Grantham | $210,852 | <0.1% | New |
Largest holders overall
- BlackRock$402mAdded
- Vanguard Portfolio Management$226m
- State Street$124m
- Blackstone$98m
- Vanguard Capital Management$96mCut
- Bank of America$71mCut
- Geode Capital Management$60mAdded
- Woodline Partners LP$53mAdded
- Prudential Financial$52mCut
- Nuveen$49mAdded
From 13F filings for the quarter ended 30 June 2026.
Big holders and activists
3 investors own more than 5%.
- BlackRock, Inc.Passive investor17.0%Since 30 June 2025
- Vanguard Portfolio ManagementPassive investor10.2%Since 30 January 2026
- Vanguard Capital ManagementPassive investor5.3%Since 31 March 2026
- BANK OF AMERICA CORP /DE/Passive investorSold down below 5%Since 30 June 2026
- The Vanguard GroupPassive investorSold down below 5%Since 13 March 2026
| Holder | Stake | Since | |
|---|---|---|---|
BlackRock, Inc. Passive investor | 17.0% | 30 June 2025 | |
Vanguard Portfolio Management Passive investor | 10.2% | 30 January 2026 | |
Vanguard Capital Management Passive investor | 5.3% | 31 March 2026 | |
BANK OF AMERICA CORP /DE/ Passive investor | Sold down below 5% | 30 June 2026 | |
The Vanguard Group Passive investor | Sold down below 5% | 13 March 2026 |
From Schedule 13D and 13G filings: anyone owning more than 5% must file one.
What insiders did
No insider bought shares on the open market in the last 12 months. 1 sold $1m.
- Springer Robert CPRESIDENT AND CIOSold
- Date
- 24 June 2026
- Shares
- 89,631
- Price
- $11.62
- Value
- $1m
| Date | Who | Did | Shares | Price | Value |
|---|---|---|---|---|---|
| 24 June 2026 | Springer Robert C PRESIDENT AND CIO | Sold | 89,631 | $11.62 | $1m |
From Form 4 filings: insiders must report trades in their own company's shares within two days.
What could go wrong
- It isn't cheap on profits: 28.7× operating profit.
Whether the price already reflects the risks is what the deep dive is for.
The deep dive
Everything above is arithmetic on public filings. The deep dive reads the last ten years of annual reports, the proxy statements, and the earnings calls, then argues the case the way Buffett, Klarman, and Hohn would, and checks every claim against the source.
- What the business is worth, as a range, and the margin of safety at today’s price
- Prices to start buying, buy, and buy hard
- The three things that would make this a mistake
- Every number footnoted to the filing it came from
Your first deep dive is free.
Not advice. Numbers on this page come from SEC filings and are updated each night; prices are updated again after the US market closes. The five-year figures are rounded.