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SUNSTONE HOTEL INVESTORS For Additional Information : Bryan Giglia Sunstone Hotel Investors , Inc. ( 949 ) 382-3036 Aaron Reyes Sunstone Hotel Investors , Inc. ( 949 ) 382-3018 ● SUNSTONE HOTEL INVESTORS REPORTS RESULTS FOR THIRD QUARTER 2021 Under Contract to Acquire the 85 - Room Four Seasons Resort Napa Valley for $ 177.5 Million Under Contract to Sell the 340 - Room Embassy Suites La Jolla for $ 226.7 Million Sold the 348 - Room Renaissance Westchester for $ 18.8 Million IRVINE , CA - November 4 , 2021 - Sunstone Hotel Investors , Inc. ( the " Company " or " Sunstone " ) ( NYSE : SHO ) , the owner of Long - Term Relevant Real Estate® in the hospitality sector , today announced results for the third quarter ended September 30 , 2021 . Third Quarter 2021 Operational Results ( as compared to Third Quarter 2020 ) : Net Loss : Net loss was $ 22.1 million as compared to $ 91.1 million . 16 Hotel Portfolio RevPAR : RevPAR at the comparable 16 hotels the Company owned during both 2021 and 2020 , except the Renaissance Westchester which was sold in October 2021 ( the " 16 Hotel Portfolio " ) , increased 633.4 % to $ 136.12 . The average daily rate was $ 248.40 and occupancy was 54.8 % . 17 Hotel Portfolio RevPAR : RevPAR at the 17 Hotels , which includes the 16 Hotel Portfolio and the Montage Healdsburg was $ 145.79 , comprised of an average daily rate of $ 265.56 and occupancy of 54.9 % . Adjusted EBITDAre : Adjusted EBITDAre , excluding noncontrolling interest increased 197.7 % to $ 35.4 million . Adjusted FFO : Adjusted FFO attributable to common stockholders per diluted share increased 138.5 % to $ 0.10 . Information regarding the non - GAAP financial measures disclosed in this release is provided below in " Non - GAAP Financial Measures . " Reconciliations of non - GAAP financial measures to the most comparable GAAP measure for each of the periods presented are included later in this release . Douglas M. Pasquale , Interim Chief Executive Officer , stated , " We are pleased with our third quarter and year to date results , which meaningfully exceeded our revenue and profitability expectations despite some headwinds from the Delta variant . While leisure demand over the summer travel season was the strongest since the onset of the pandemic , our portfolio saw continued demand growth from all primary segments which added significantly to the quarter's successes . While concerns related to the Delta variant have impacted short - term group demand , we are seeing a re - acceleration of both business transient and group bookings for the fourth quarter and into 2022. ' Mr. Pasquale continued , “ During the quarter , we accelerated capital recycling initiatives and have recently completed or are under contract to complete several transactions that will better position the Company for future value creation . The disposition of the Renaissance Westchester is consistent with our strategy of divesting non - Long - Term Relevant Real Estate , while the sale of the Embassy Suites La Jolla is a great example of capitalizing on an opportunity to realize the value of well - located real estate at a sale price far in excess of the hotel's value . The opportunistic sale of the Embassy Suites La Jolla for $ 226.7 million , or approximately $ 667,000 per key , will further strengthen our balance sheet and provide capacity for future growth . The acquisition of Four Seasons Resort Napa Valley will increase our exposure to one of the strongest leisure and group markets , which , combined with Montage Healdsburg , will increase our ownership in the wine country to approximately 10 % of our portfolio . Upon completion , we will own the two premiere hotels in the market and control approximately 32 % of the luxury meeting space . I am very pleased with the progress and execution the team has achieved during my tenure as Interim CEO . " 1