Sunstone updates RevPAR, plans to deed back 13 hotels

SAN CLEMENTE, CA—Hotelnewsnow.com reports Sunstone Hotel Investors, Incorporated (NYSE: SHO) said it expects big declines in revenue per available room for the fourth quarter and year, and that it will deed back 13 of its hotel to lenders.

The company said RevPAR for the quarter is expected to be US$97.9 million, down 14.1 percent, and that full-year RevPAR will decline by 18.5 percent to US$102.7 million.

In addition, the company was unable to amend loan terms on three of its hotel loans and will deed the loans back to lenders. The company will deed back 11 hotels to Massachusetts Mutual Life Insurance Company, and will also give back the Renaissance Westchester (top left photo)  and Marriott Ontario Airport. Total value of the loans is US$300.7 million.

“We are steadfast in our resolve to do what’s best for stockholders,” Arthur Buser, president and CEO, said in a statement. “Our objective is to outperform, and we believe that by being nimble, well-capitalized and decisive we will continue to create significant long-term shareholder value."

Sunstone Hotel Investors, Inc. Announces the Acquisition of Land Underlying its Renaissance Orlando Resort at SeaWorld

SAN CLEMENTE, CA/PRNewswire-FirstCall/ -- Sunstone Hotel Investors, Inc. (NYSE:SHO) has acquired 32.6 acres of land underlying its Renaissance Orlando Resort at SeaWorld, (top left photo) for a gross purchase price of $30.4 million.

Prior to the acquisition by Sunstone, the land had been leased from a third-party. Ground rent under the lease is projected to be approximately $2.8 million in 2008. Sunstone acquired the land with available cash.

Robert A. Alter, (top right photo) Chairman and Chief Executive Officer stated, "We are pleased that we were able to execute this transaction as it represents a unique opportunity to consolidate the fee interest in a core hotel. This acquisition advances our strategy of creating stockholder value by redeploying capital into our existing portfolio."

Sunstone Hotel Investors, Inc. is a lodging real estate investment trust ("REIT") that, as of the date hereof, has interests in 45 hotels comprised of 15,349 rooms primarily in the upper-upscale segment operated under nationally recognized brands, such as Marriott, Hilton, Hyatt, Fairmont and Starwood.

For further information, please visit the Company's website at http://www.sunstonehotels.com/.
CONTACT: Bryan Giglia, Vice President, Corporate Finance of SunstoneHotel Investors, Inc., +1-949-369-4236

Web site: http://www.sunstonehotels.com/

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