Sunstone Hotel Investors Announces Public Follow-On Offering of 17,250,000 Shares of Primary Common Stock

  Sunstone Hotel Investors Announces Public Follow-On Offering of 17,250,000
                        Shares of Primary Common Stock

PR Newswire

ALISO VIEJO, Calif., Jan. 28, 2013

ALISO VIEJO, Calif., Jan. 28, 2013 /PRNewswire/ -- Sunstone Hotel Investors,
Inc. (the "Company") (NYSE: SHO) announced today that it has agreed to sell
17,250,000 shares of its common stock in an underwritten public offering. The
underwriter may offer shares of common stock in transactions of the NYSE, in
the over-the-counter market or through negotiated transactions at market
prices or at negotiated prices. The underwriter will be granted a30-day
option to purchase up to an additional 2,587,500 shares of common stock.The
offering is expected to close on February 1, 2013, subject to customary
closing conditions.

The Company intends to use the net proceeds from the offering after deducting
the underwriting discount and estimated offering expenses, to repurchase or
redeem all issued and outstanding 8.0% Series A Cumulative Redeemable
Preferred Stock (CUSIP: 867892200) and, to the extent any excess proceeds are
available, for potential future acquisitions and for other general corporate
purposes, including working capital and capital investments in our portfolio.

Citigroupis serving as the sole book-running manager for the offering. A copy
of the prospectus supplement and prospectus relating to these securities may
be obtained, when available, by contacting Citigroup, c/o Broadridge Financial
Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, telephone: (800)
831-9146. This press release shall not constitute an offer to sell or the
solicitation of an offer to buy, nor shall there be any sale of these
securities in any state in which such offer, solicitation or sale would be
unlawful prior to registration or qualification under the securities laws of
any such state. Any offer or sale will be made only by means of the written
prospectus forming part of the effective registration statement.

About Sunstone Hotel Investors:
Sunstone Hotel Investors, Inc. ("Sunstone") is a lodging real estate
investment trust ("REIT") that has interests in 26 hotels comprised of 11,632
rooms. Sunstone's hotels are primarily in the upper upscale segment and are
generally operated under nationally recognized brands, such as Marriott,
Hilton, Hyatt, Fairmont, and Sheraton.

Sunstone's mission is to create meaningful value for our stockholders by
becoming the premier hotel investment company. Our values include
transparency, trust, ethical conduct, communication and discipline. We seek to
employ a balanced, cycle-appropriate corporate strategy that encompasses the

  oProactive portfolio management;
  oIntensive asset management;
  oDisciplined external growth; and
  oMeasured balance sheet improvement.

This press release contains forward-looking statements within the meaning of
federal securities laws and regulations. These forward-looking statements are
identified by their use of terms and phrases such as "anticipate," "believe,"
"continue," "could," "estimate," "expect," "intend," "may," "plan," "predict,"
"project," "should," "will" and other similar terms and phrases, including
references to assumptions and forecasts of future results. Forward-looking
statements are not guarantees of future performance and involve known and
unknown risks, uncertainties and other factors that may cause the actual
results to differ materially from those anticipated at the time the
forward-looking statements are made. These risks include, but are not limited
to: volatility in the debt or equity markets affecting our ability to acquire
or sell hotel assets; international, national, and local economic and business
conditions, including the likelihood of a prolonged U.S. recessionor global
economic slowdown; the ability to maintain sufficient liquidity and our access
to capital markets; potential terrorist attacks, which would affect occupancy
rates at our hotels and the demand for hotel products and services; operating
risks associated with the hotel business; risks associated with the level of
our indebtedness and our ability to meet covenants in our debt and equity
agreements; relationships with property managers and franchisors; the ground,
air or building leases for 10 of our 26 hotels held for investment as of
January 28, 2013; our ability to maintain our properties in a first-class
manner, including meeting capital expenditure requirements; our ability to
compete effectively in areas such as access, location, quality of
accommodations and room rate structures; changes in travel patterns, taxes and
government regulations, which influence or determine wages, prices,
construction procedures and costs; our ability to identify, successfully
compete for and complete acquisitions; the performance of hotels after they
are acquired; necessary capital expenditures and our ability to fund them and
complete them with minimum disruption; the impact of renovations on hotel
operations and delays in renovations or other developments; our ability to
continue to satisfy complex rules in order for us to qualify as a REIT for
federal income tax purposes; our hotels and related goodwill may become
impaired, or our hotels and related goodwill which have previously become
impaired may become further impaired, in the future, which may adversely
affect our financial condition and results of operations; potential adverse
tax consequences in the event that our operating leases with our taxable REIT
subsidiaries are held not to have been made on an arm's-length basis; and
other risks and uncertainties associated with our business described in the
Company's filings with the Securities and Exchange Commission. Although the
Company believes the expectations reflected in such forward-looking statements
are based upon reasonable assumptions, it can give no assurance that the
expectations will be attained or that any deviation will not be material. All
forward-looking information in this release is as of January 28, 2013, and the
Company undertakes no obligation to update any forward-looking statement to
conform the statement to actual results or changes in the Company's

For Additional Information:
Bryan Giglia
Senior Vice President – Corporate Finance
Sunstone Hotel Investors, Inc.
(949) 382-3036

SOURCE Sunstone Hotel Investors, Inc.

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