Sunstone Hotel Investors, Inc. Announces Resignation of Steven R. Goldman as Chief Executive Officer and the Appointment of Robert A. Alter as Interim

SAN CLEMENTE, Calif. Sunstone Hotel Investors, Inc. (NYSE:SHO) announced today that Steven R. Goldman (photo top left) has tendered his resignation as President and Chief Executive Officer of the Company, to become President of Global Real Estate and Development at Hilton Hotels Corporation. Mr. Goldman will remain at the Company until the end of March to assist in the transition of duties.

The Board of Directors has appointed Robert A. Alter (photo top right) as interim Chief Executive Officer effective March 31, 2008. Mr. Alter currently serves as the Company's Executive Chairman, and from its founding until March 2007, he served as the Company's Chief Executive Officer. Mr. Alter will remain as interim Chief Executive Officer until a permanent chief executive officer is retained.

The Board expressed regret over Mr. Goldman's decision, but wishes him well in his unique opportunity and appreciates his efforts and results during his tenure.

About Sunstone Hotel Investors, Inc.
Sunstone Hotel Investors, Inc. is a lodging real estate investment trust (REIT) that, as of the date hereof, has interests in 46 hotels with an aggregate of 16,085 rooms primarily in the upper-upscale segment operated under nationally recognized brands such as Marriott, Hyatt, Hilton, Starwood and Fairmont.

CONTACT
Bryan Giglia
Director of Finance
Phone: (949) 369-4236

ORGANIZATION
Sunstone Hotel Investors, Inc.
http://www.sunstonehotels.com/

903 Calle Amanecer, Suite 100
USA - San Clemente,, CA 92673-6212
Phone: 949-369-4100
Fax: 949-369-4110
Email: mcummins@sunstonehotels.com