Sunstone Hotel Investors, Inc. · NYSE:SHO

Sunstone Hotel Investors — Corporate Update (June 2015)

112 slides from Sunstone Hotel Investors's corporate update, Jun 24, 2015

  1. Slide 1: Boston Park Plaza Property Tour June 2015

    Boston Park Plaza Property Tour Property Tour June 2015

  2. Slide 2: Forward-looking statements

    This presentation 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,”

  3. Slide 3: Agenda

    June 24, 2015 [Agenda] PROPERTY TOUR PRESENTATION JUNE 2015 SUNSTONE HOTEL INVESTORS, INC. 3 Introductions Boston Park Plaza Repositioning & Investment Thesis Boston Park Plaza Property Tour Wailea Beach Resort & Spa, a Marriott Resort Repositioning & Investment Thesis Questions

  4. Slide 4: Boston Park Plaza Summary

    Boston Park Plaza Summary [Property Overview] PROPERTY TOUR PRESENTATION JUNE 2015 SUNSTONE HOTEL INVESTORS, INC. 4 Property Highlights: Prime, independent, fee-simple location in Boston’s Back Bay 1,054 guestrooms with 50K of meeting space and 50K sq. ft. of retail space Attractive in-place cash fl

  5. Slide 5: Asset Management Initiatives – Driving Profitability

    Asset Management Initiatives – Driving Profitability [Property Overview] PROPERTY TOUR PRESENTATION JUNE 2015 SUNSTONE HOTEL INVESTORS, INC. 5 Converted 150 full size rooms to queen rooms changing room type from petite to queen Renegotiated crew contracts and increased rates by over 37% during the l

  6. Slide 6: Investment Plan – Podium & Infrastructure Largely Completed

    Investment Plan – Podium & Infrastructure Largely Completed [Property Overview] PROPERTY TOUR PRESENTATION JUNE 2015 SUNSTONE HOTEL INVESTORS, INC. 6 Positioning Statement: Capitalize on an exceptionally located, large, unencumbered urban asset and redefine its long-term earnings potential through a

  7. Slide 7: Projected Displacement – Manageable & In-Line with Expectations

    Projected Displacement – Manageable & In-Line with Expectations [Property Overview] PROPERTY TOUR PRESENTATION JUNE 2015 SUNSTONE HOTEL INVESTORS, INC. 7 The hotel continues to operate with limited guest impact throughout the repositioning. Actual RevPAR growth of 8.7% in 2014. Expected to generate

  8. Slide 8: Group Business Overview – Positioned For A Higher Paying Customer

    Group Business Overview – Positioned For A Higher Paying Customer [Property Overview] PROPERTY TOUR PRESENTATION JUNE 2015 SUNSTONE HOTEL INVESTORS, INC. 8 Prior to the repositioning, the hotel had to rely on low rated group during peak demand time to fill rooms. Following the completion of the meet

  9. Slide 9: Retail Overview – Maximizing Rent & Guest Experience

    Retail Overview – Maximizing Rent & Guest Experience [Property Overview] PROPERTY TOUR PRESENTATION JUNE 2015 SUNSTONE HOTEL INVESTORS, INC. 9 Open Space Anticipated to be restaurant concept Sq Ft: 11,584 Hermes Space Available Q3 2015 Anticipated to be dry retail Sq Ft: 5,556 Open Space Anticipated

  10. Slide 10: Post-Repositioning Projections – Stronger Than Expected Performance

    Post-Repositioning Projections – Stronger Than Expected Performance [Property Overview] PROPERTY TOUR PRESENTATION JUNE 2015 SUNSTONE HOTEL INVESTORS, INC. 10 The hotel is performing in-line or above our initial expectations. We expect growth in the 2H 2016 and 2017 to exceed our previous expectatio

  11. Slide 11: Investment Thesis – An Attractive All-In Basis & Strong Yield

    Investment Thesis – An Attractive “All-In” Basis & Strong Yield [Property Overview] PROPERTY TOUR PRESENTATION JUNE 2015 SUNSTONE HOTEL INVESTORS, INC. 11 (1) Purchase price reflects the Net Purchase Price as presented in the Company’s Form 10-Q as filed November 12, 2013. (2) EBITDA Multiple calcul

  12. Slide 12: Hyatt Regency San Francisco – Excellent To-Date Performance

    Hyatt Regency San Francisco – Excellent To-Date Performance . With More To Come [Property Overview] SUNSTONE HOTEL INVESTORS, INC. 12 Property Highlights: Prime, fee-simple location in San Francisco’s Financial District 3 million sq. ft. of new office construction within five blocks Favorable supply

  13. Slide 13: Post-Renovation Projections – Exceeding Expectations

    Post-Renovation Projections – Exceeding Expectations [Property Overview] PROPERTY TOUR PRESENTATION JUNE 2015 SUNSTONE HOTEL INVESTORS, INC. 13 The hotel continues to perform above our initial expectations. 2016 is projected to be a strong year with Super Bowl 50. Current group pace is +11.4% for 20

  14. Slide 14: [Property Overview] PROPERTY TOUR PRESENTATION JUNE 2015 SUNSTONE HOTEL INVESTORS, INC. 14 Purchase price

    [Property Overview] PROPERTY TOUR PRESENTATION JUNE 2015 SUNSTONE HOTEL INVESTORS, INC. 14 Purchase price reflects the Net Purchase Price as presented in the Company’s Form 10-K as filed February 20, 2014. Per Key calculation is based on 804 keys as provided in supplemental financial information rep

  15. Slide 15: Property Tour

    Property Tour PROPERTY TOUR PRESENTATION JUNE 2015 SUNSTONE HOTEL INVESTORS, INC. 15

  16. Slide 16: Lobby – Pre-Repositioning

    Lobby – Pre-Repositioning [Boston Park Plaza] PROPERTY TOUR PRESENTATION JUNE 2015 SUNSTONE HOTEL INVESTORS, INC. 16

  17. Slide 17: Lobby – Pre-Repositioning

    Lobby – Pre-Repositioning [Boston Park Plaza] PROPERTY TOUR PRESENTATION JUNE 2015 SUNSTONE HOTEL INVESTORS, INC. 17

  18. Slide 18: Front Desk – Pre-Repositioning

    Front Desk – Pre-Repositioning [Boston Park Plaza] PROPERTY TOUR PRESENTATION JUNE 2015 SUNSTONE HOTEL INVESTORS, INC. 18

  19. Slide 19: Lobby – Current

    Lobby – Current [Boston Park Plaza] PROPERTY TOUR PRESENTATION JUNE 2015 SUNSTONE HOTEL INVESTORS, INC. 19

  20. Slide 20: Lobby – Current

    Lobby – Current [Boston Park Plaza] PROPERTY TOUR PRESENTATION JUNE 2015 SUNSTONE HOTEL INVESTORS, INC. 20

  21. Slide 21: Lobby – Current

    Lobby – Current [Boston Park Plaza] PROPERTY TOUR PRESENTATION JUNE 2015 SUNSTONE HOTEL INVESTORS, INC. 21

  22. Slide 22: Lobby – Current

    Lobby – Current [Boston Park Plaza] PROPERTY TOUR PRESENTATION JUNE 2015 SUNSTONE HOTEL INVESTORS, INC. 22

  23. Slide 23: Restaurant – Pre-Repositioning

    Restaurant – Pre-Repositioning [Boston Park Plaza] PROPERTY TOUR PRESENTATION JUNE 2015 SUNSTONE HOTEL INVESTORS, INC. 23

  24. Slide 24: Restaurant – Current

    Restaurant – Current [Boston Park Plaza] PROPERTY TOUR PRESENTATION JUNE 2015 SUNSTONE HOTEL INVESTORS, INC. 24

  25. Slide 25: Restaurant – Current

    Restaurant – Current [Boston Park Plaza] PROPERTY TOUR PRESENTATION JUNE 2015 SUNSTONE HOTEL INVESTORS, INC. 25

  26. Slide 26: Restaurant – Current

    Restaurant – Current [Boston Park Plaza] PROPERTY TOUR PRESENTATION JUNE 2015 SUNSTONE HOTEL INVESTORS, INC. 26

  27. Slide 27: Imperial Ballroom – Pre-Repositioning

    Imperial Ballroom – Pre-Repositioning [Boston Park Plaza] PROPERTY TOUR PRESENTATION JUNE 2015 SUNSTONE HOTEL INVESTORS, INC. 27

  28. Slide 28: Imperial Ballroom – Current

    Imperial Ballroom – Current [Boston Park Plaza] PROPERTY TOUR PRESENTATION JUNE 2015 SUNSTONE HOTEL INVESTORS, INC. 28

  29. Slide 29: Imperial Ballroom – Pre-Repositioning

    Imperial Ballroom – Pre-Repositioning [Boston Park Plaza] PROPERTY TOUR PRESENTATION JUNE 2015 SUNSTONE HOTEL INVESTORS, INC. 29

  30. Slide 30: Imperial Ballroom – Current

    Imperial Ballroom – Current [Boston Park Plaza] PROPERTY TOUR PRESENTATION JUNE 2015 SUNSTONE HOTEL INVESTORS, INC. 30

  31. Slide 31: David Barton Gym – Pre-Repositioning

    David Barton Gym – Pre-Repositioning [Boston Park Plaza] PROPERTY TOUR PRESENTATION JUNE 2015 SUNSTONE HOTEL INVESTORS, INC. 31

  32. Slide 32: David Barton Gym – Current

    David Barton Gym – Current [Boston Park Plaza] PROPERTY TOUR PRESENTATION JUNE 2015 SUNSTONE HOTEL INVESTORS, INC. 32

  33. Slide 33: David Barton Gym – Current

    David Barton Gym – Current [Boston Park Plaza] PROPERTY TOUR PRESENTATION JUNE 2015 SUNSTONE HOTEL INVESTORS, INC. 33

  34. Slide 34: STRIP by Strega – Pre-Repositioning

    “STRIP by Strega” – Pre-Repositioning [Boston Park Plaza] PROPERTY TOUR PRESENTATION JUNE 2015 SUNSTONE HOTEL INVESTORS, INC. 34

  35. Slide 35: STRIP by Strega – Current

    “STRIP by Strega”– Current [Boston Park Plaza] PROPERTY TOUR PRESENTATION JUNE 2015 SUNSTONE HOTEL INVESTORS, INC. 35

  36. Slide 36: Questions & Answers – Thank You

    [Questions & Answers] PROPERTY TOUR PRESENTATION JUNE 2015 SUNSTONE HOTEL INVESTORS, INC. 36 Thank You.

  37. Slide 37: Boston Park Plaza EBITDA Reconciliation

    Boston Park Plaza [EBITDA Reconciliation] PROPERTY TOUR PRESENTATION JUNE 2015 SUNSTONE HOTEL INVESTORS, INC. 37 Plus: Plus: Plus: Equals: Hotel Adjusted Less: Equals: Total Other Hotel Adjusted EBITDA Hotel Net FFO Revenues Net Income Depreciation Adjustments Interest Expense EBITDA (1) Margin FF&E

  38. Slide 38: Hyatt Regency San Francisco EBITDA Reconciliation

    Hyatt Regency San Francisco [EBITDA Reconciliation] PROPERTY TOUR PRESENTATION JUNE 2015 SUNSTONE HOTEL INVESTORS, INC. 38 Plus: Equals: Hotel Less: Equals: Total Hotel EBITDA Hotel Net FFO Revenues Net Income Depreciation EBITDA Margin FF&E Reserve Operating Income Contribution Full Year 2013 (1) (

  39. Slide 39: Wailea Beach Resort & Spa, a Marriott Resort Property Tour June 2015

    Wailea Beach Resort & Spa, a Marriott Resort Property Tour June 2015

  40. Slide 40: Forward-looking statements

    This presentation 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,”

  41. Slide 41: Hawaiian Islands – Different Islands, Different Experiences

    Hawaiian Islands – Different Islands ..Different Experiences [Market Overview] PROPERTY TOUR PRESENTATION JUNE 2015 SUNSTONE HOTEL INVESTORS, INC. 3 Hawaii Maui Oahu Kauai Niihau Molokai Kahoolawe Lanai Honolulu Wailea (1) Data presented in Hotel News Now “Hawaii achieved record revenue in 2014” rel

  42. Slide 42: Hawaiian Islands – Visitation Varies by Island

    Hawaiian Islands – Visitation Varies by Island [Market Overview] PROPERTY TOUR PRESENTATION JUNE 2015 SUNSTONE HOTEL INVESTORS, INC. 4 Hawaii Maui Oahu Kauai Niihau Kahoolawe Lanai Honolulu Wailea The majority of the travel to Maui comes from the domestic U.S., particularly the west coast. Oahu has

  43. Slide 43: Hawaiian Islands – Maui Continues to Strengthen

    Hawaiian Islands – Maui Continues to Strengthen [Market Overview] PROPERTY TOUR PRESENTATION JUNE 2015 SUNSTONE HOTEL INVESTORS, INC. 5 Hawaii Maui Oahu Kauai Niihau Molokai Kahoolawe Lanai Honolulu Wailea YTD April 2015, Maui has had a +5.2% increase in visitors by air vs +2.0% increase in Oahu. In

  44. Slide 44: Hawaiian Islands – Cheaper Airfare and More Flights

    Hawaiian Islands – Cheaper Airfare and More Flights [Market Overview] PROPERTY TOUR PRESENTATION JUNE 2015 SUNSTONE HOTEL INVESTORS, INC. 6 Hawaii Maui Oahu Kauai Niihau Kahoolawe Lanai Honolulu Wailea YTD April 2015, Maui has had an +18.6% increase in seat capacity compared to a +2.8% increase in O

  45. Slide 45: Maui Island – Wailea is Maui’s Premier Destination

    Maui Island – Wailea is Maui’s Premier Destination [Market Overview] PROPERTY TOUR PRESENTATION JUNE 2015 SUNSTONE HOTEL INVESTORS, INC. 7 Wailea Lahaina Kaanapali Kapalua = 0” – 10” = 10” – 20” = 20” – 30” = 30” – 40” Maui Markets(1): Kapalua – master planned community including the Ritz-Carlton Re

  46. Slide 46: Wailea – Maui’s Premier Resort Destination

    Wailea – Maui’s Premier Resort Destination [Market Overview] PROPERTY TOUR PRESENTATION JUNE 2015 SUNSTONE HOTEL INVESTORS, INC. 8 Wailea 2014 Market RevPAR(2): $422 Wailea Beach Resort & Spa 2014 RevPAR: $220 (1) Key count is based on expected final key count post-repositioning. (2) Competitive Set

  47. Slide 47: Wailea Beach Resort & Spa Summary

    Wailea Beach Resort & Spa Summary [Property Overview] PROPERTY TOUR PRESENTATION JUNE 2015 SUNSTONE HOTEL INVESTORS, INC. 9 Property Highlights: Acquired the 547-room Wailea Beach Resort & Spa for $325.6 million ($595,000 per key) in July 2014 Oceanfront, fee-simple 22 acres in Maui, Hawaii Located

  48. Slide 48: Initial Asset Management Initiatives – Driving Profitability

    Initial Asset Management Initiatives – Driving Profitability [Property Overview] PROPERTY TOUR PRESENTATION JUNE 2015 SUNSTONE HOTEL INVESTORS, INC. 10 Increase number of room types particularly focusing on increasing premium room types to maximize ADR strategies Added a dedicated revenue manager on

  49. Slide 49: Opportunity – Attract Higher Paying Guests

    Opportunity – Attract Higher Paying Guests [Property Overview] PROPERTY TOUR PRESENTATION JUNE 2015 SUNSTONE HOTEL INVESTORS, INC. 11 (1) Contains estimated FY data for Hyatt Regency Maui Resort and the Westin Maui Resort & Spa. (2) Represents expected post-repositioning performance, excluding marke

  50. Slide 50: Repositioning Plan - Capital Investment Plus Asset Management

    Repositioning Plan - Capital Investment Plus Asset Management Equals Greater Revenues & Profits [Property Overview] PROPERTY TOUR PRESENTATION JUNE 2015 SUNSTONE HOTEL INVESTORS, INC. 12 Revenues: Focus on growing RevPAR index. Implemented strategies that adjusted the overall segmentation and rate o

  51. Slide 51: Investment Plan – Investing in the Future

    Investment Plan – Investing in the Future [Property Overview] PROPERTY TOUR PRESENTATION JUNE 2015 SUNSTONE HOTEL INVESTORS, INC. 13 Positioning Statement: Capitalize on our property’s unique oceanfront Wailea location by creating a well-defined, cohesive destination experience complete with a physi

  52. Slide 52: Projected Displacement – Work Will Accelerate into 2016

    Projected Displacement – Work Will Accelerate into 2016 [Property Overview] PROPERTY TOUR PRESENTATION JUNE 2015 SUNSTONE HOTEL INVESTORS, INC. 14 2015 displacement, which includes the disruption from the repositioning of the meeting space, guestrooms, family pool and pool restaurant, is expected to

  53. Slide 53: Post-Repositioning Projections – Exceeding Expectations

    Post-Repositioning Projections – Exceeding Expectations [Property Overview] PROPERTY TOUR PRESENTATION JUNE 2015 SUNSTONE HOTEL INVESTORS, INC. 15 We expect displacement to be heavily weighted to 2016 with significant ramp-up in 2017. $2 million Marriott guaranty shifted from 2015 to 2016 ($5 millio

  54. Slide 54: Investment Thesis – Coveted Real Estate at an Attractive Yield

    Investment Thesis – Coveted Real Estate at an Attractive Yield [Property Overview] PROPERTY TOUR PRESENTATION JUNE 2015 SUNSTONE HOTEL INVESTORS, INC. 16 Purchase price reflects the Net Purchase Price as presented in the Company’s Form 10-Q as filed November 3, 2014. Per Key calculation is based on

  55. Slide 55: Questions & Answers – Mahalo

    [Questions & Answers] PROPERTY TOUR PRESENTATION JUNE 2015 SUNSTONE HOTEL INVESTORS, INC. 17 Mahalo.

  56. Slide 56: Repositioning Plan Photo Tour

    [Wailea Beach Resort & Spa, a Marriott Resort: Repositioning Plan Photo Tour] PROPERTY TOUR PRESENTATION JUNE 2015 SUNSTONE HOTEL INVESTORS, INC. 18

  57. Slide 57: Resort Overview

    Resort Overview [Wailea Beach Resort & Spa] PROPERTY TOUR PRESENTATION JUNE 2015 SUNSTONE HOTEL INVESTORS, INC. 19

  58. Slide 58: Front Drive and Grand Lanai

    Front Drive and Grand Lanai [Wailea Beach Resort & Spa] PROPERTY TOUR PRESENTATION JUNE 2015 SUNSTONE HOTEL INVESTORS, INC. 20

  59. Slide 59: Front Drive – Enhance Sense of Arrival

    Front Drive – Enhance Sense of Arrival [Wailea Beach Resort & Spa] PROPERTY TOUR PRESENTATION JUNE 2015 SUNSTONE HOTEL INVESTORS, INC. 21

  60. Slide 60: Grand Lanai – Current

    Grand Lanai – Current [Wailea Beach Resort & Spa] PROPERTY TOUR PRESENTATION JUNE 2015 SUNSTONE HOTEL INVESTORS, INC. 22

  61. Slide 61: Grand Lanai – Renderings

    Grand Lanai – Renderings [Wailea Beach Resort & Spa] PROPERTY TOUR PRESENTATION JUNE 2015 SUNSTONE HOTEL INVESTORS, INC. 23

  62. Slide 62: Grand Lanai – Renderings

    Grand Lanai – Renderings [Wailea Beach Resort & Spa] PROPERTY TOUR PRESENTATION JUNE 2015 SUNSTONE HOTEL INVESTORS, INC. 24

  63. Slide 63: Lokelani – Current

    Lokelani – Current [Wailea Beach Resort & Spa] PROPERTY TOUR PRESENTATION JUNE 2015 SUNSTONE HOTEL INVESTORS, INC. 25

  64. Slide 64: Aulani – Current

    Aulani – Current [Wailea Beach Resort & Spa] PROPERTY TOUR PRESENTATION JUNE 2015 SUNSTONE HOTEL INVESTORS, INC. 26

  65. Slide 65: Pre-function Concept – Renderings

    Pre-function Concept – Renderings [Wailea Beach Resort & Spa] PROPERTY TOUR PRESENTATION JUNE 2015 SUNSTONE HOTEL INVESTORS, INC. 27

  66. Slide 66: Family Pool and Kapa Bar & Grill

    Family Pool and Kapa Bar & Grill [Wailea Beach Resort & Spa] PROPERTY TOUR PRESENTATION JUNE 2015 SUNSTONE HOTEL INVESTORS, INC. 28

  67. Slide 67: Family Pool – Current

    Family Pool – Current [Wailea Beach Resort & Spa] PROPERTY TOUR PRESENTATION JUNE 2015 SUNSTONE HOTEL INVESTORS, INC. 29

  68. Slide 68: Family Pool – Current

    Family Pool – Current [Wailea Beach Resort & Spa] PROPERTY TOUR PRESENTATION JUNE 2015 SUNSTONE HOTEL INVESTORS, INC. 30

  69. Slide 69: Family Pool – Renderings

    Family Pool – Renderings [Wailea Beach Resort & Spa] PROPERTY TOUR PRESENTATION JUNE 2015 SUNSTONE HOTEL INVESTORS, INC. 31

  70. Slide 70: Kapa Bar & Grill – Current

    Kapa Bar & Grill – Current [Wailea Beach Resort & Spa] PROPERTY TOUR PRESENTATION JUNE 2015 SUNSTONE HOTEL INVESTORS, INC. 32

  71. Slide 71: Kapa Bar & Grill – Renderings

    Kapa Bar & Grill – Renderings [Wailea Beach Resort & Spa] PROPERTY TOUR PRESENTATION JUNE 2015 SUNSTONE HOTEL INVESTORS, INC. 33

  72. Slide 72: Kapa Bar & Grill – Renderings

    Kapa Bar & Grill – Renderings [Wailea Beach Resort & Spa] PROPERTY TOUR PRESENTATION JUNE 2015 SUNSTONE HOTEL INVESTORS, INC. 34

  73. Slide 73: Kapa Bar & Grill – Renderings

    Kapa Bar & Grill – Renderings [Wailea Beach Resort & Spa] PROPERTY TOUR PRESENTATION JUNE 2015 SUNSTONE HOTEL INVESTORS, INC. 35

  74. Slide 74: Serenity Pool & Serenity Bar

    Serenity Pool & Serenity Bar [Wailea Beach Resort & Spa] PROPERTY TOUR PRESENTATION JUNE 2015 SUNSTONE HOTEL INVESTORS, INC. 36

  75. Slide 75: Serenity Pool – Current

    Serenity Pool – Current [Wailea Beach Resort & Spa] PROPERTY TOUR PRESENTATION JUNE 2015 SUNSTONE HOTEL INVESTORS, INC. 37

  76. Slide 76: Serenity Pool – Current

    Serenity Pool – Current [Wailea Beach Resort & Spa] PROPERTY TOUR PRESENTATION JUNE 2015 SUNSTONE HOTEL INVESTORS, INC. 38

  77. Slide 77: Serenity Pool – Renderings

    Serenity Pool – Renderings [Wailea Beach Resort & Spa] PROPERTY TOUR PRESENTATION JUNE 2015 SUNSTONE HOTEL INVESTORS, INC. 39

  78. Slide 78: Newly Created Serenity Bar – Renderings

    Newly Created Serenity Bar – Renderings [Wailea Beach Resort & Spa] PROPERTY TOUR PRESENTATION JUNE 2015 SUNSTONE HOTEL INVESTORS, INC. 40

  79. Slide 79: Newly Created Serenity Bar – Renderings

    Newly Created Serenity Bar – Renderings [Wailea Beach Resort & Spa] PROPERTY TOUR PRESENTATION JUNE 2015 SUNSTONE HOTEL INVESTORS, INC. 41

  80. Slide 80: Kid’s Pool

    Kid’s Pool [Wailea Beach Resort & Spa] PROPERTY TOUR PRESENTATION JUNE 2015 SUNSTONE HOTEL INVESTORS, INC. 42

  81. Slide 81: Kid’s Pool – Current

    Kid’s Pool – Current [Wailea Beach Resort & Spa] PROPERTY TOUR PRESENTATION JUNE 2015 SUNSTONE HOTEL INVESTORS, INC. 43

  82. Slide 82: Kid’s Pool – Current

    Kid’s Pool – Current [Wailea Beach Resort & Spa] PROPERTY TOUR PRESENTATION JUNE 2015 SUNSTONE HOTEL INVESTORS, INC. 44

  83. Slide 83: Kid’s Pool – Renderings

    Kid’s Pool – Renderings [Wailea Beach Resort & Spa] PROPERTY TOUR PRESENTATION JUNE 2015 SUNSTONE HOTEL INVESTORS, INC. 45

  84. Slide 84: Kid’s Pool – Renderings

    Kid’s Pool – Renderings [Wailea Beach Resort & Spa] PROPERTY TOUR PRESENTATION JUNE 2015 SUNSTONE HOTEL INVESTORS, INC. 46

  85. Slide 85: Kid’s Pool – Renderings

    Kid’s Pool – Renderings [Wailea Beach Resort & Spa] PROPERTY TOUR PRESENTATION JUNE 2015 SUNSTONE HOTEL INVESTORS, INC. 47

  86. Slide 86: Luau

    Luau [Wailea Beach Resort & Spa] PROPERTY TOUR PRESENTATION JUNE 2015 SUNSTONE HOTEL INVESTORS, INC. 48

  87. Slide 87: Luau – Current

    Luau – Current [Wailea Beach Resort & Spa] PROPERTY TOUR PRESENTATION JUNE 2015 SUNSTONE HOTEL INVESTORS, INC. 49

  88. Slide 88: Luau – Current

    Luau – Current [Wailea Beach Resort & Spa] PROPERTY TOUR PRESENTATION JUNE 2015 SUNSTONE HOTEL INVESTORS, INC. 50

  89. Slide 89: Luau – Renderings

    Luau – Renderings [Wailea Beach Resort & Spa] PROPERTY TOUR PRESENTATION JUNE 2015 SUNSTONE HOTEL INVESTORS, INC. 51

  90. Slide 90: Luau – Renderings

    Luau – Renderings [Wailea Beach Resort & Spa] PROPERTY TOUR PRESENTATION JUNE 2015 SUNSTONE HOTEL INVESTORS, INC. 52

  91. Slide 91: Whale’s Tale

    Whale’s Tale [Wailea Beach Resort & Spa] PROPERTY TOUR PRESENTATION JUNE 2015 SUNSTONE HOTEL INVESTORS, INC. 53

  92. Slide 92: Whale’s Tale – Current

    Whale’s Tale – Current [Wailea Beach Resort & Spa] PROPERTY TOUR PRESENTATION JUNE 2015 SUNSTONE HOTEL INVESTORS, INC. 54

  93. Slide 93: Whale’s Tale – Renderings

    Whale’s Tale – Renderings [Wailea Beach Resort & Spa] PROPERTY TOUR PRESENTATION JUNE 2015 SUNSTONE HOTEL INVESTORS, INC. 55

  94. Slide 94: Whale’s Tale – Renderings

    Whale’s Tale – Renderings [Wailea Beach Resort & Spa] PROPERTY TOUR PRESENTATION JUNE 2015 SUNSTONE HOTEL INVESTORS, INC. 56

  95. Slide 95: Whale’s Tale – Renderings

    Whale’s Tale – Renderings [Wailea Beach Resort & Spa] PROPERTY TOUR PRESENTATION JUNE 2015 SUNSTONE HOTEL INVESTORS, INC. 57

  96. Slide 96: Leased Restaurant & New Resort Features

    Leased Restaurant & New Resort Features [Wailea Beach Resort & Spa] PROPERTY TOUR PRESENTATION JUNE 2015 SUNSTONE HOTEL INVESTORS, INC. 58

  97. Slide 97: Main Restaurant – Renderings

    Main Restaurant – Renderings [Wailea Beach Resort & Spa] PROPERTY TOUR PRESENTATION JUNE 2015 SUNSTONE HOTEL INVESTORS, INC. 59

  98. Slide 98: Main Restaurant – Renderings

    Main Restaurant – Renderings [Wailea Beach Resort & Spa] PROPERTY TOUR PRESENTATION JUNE 2015 SUNSTONE HOTEL INVESTORS, INC. 60

  99. Slide 99: Main Restaurant – Renderings

    Main Restaurant – Renderings [Wailea Beach Resort & Spa] PROPERTY TOUR PRESENTATION JUNE 2015 SUNSTONE HOTEL INVESTORS, INC. 61

  100. Slide 100: Kid’s Center – Renderings

    Kid’s Center – Renderings [Wailea Beach Resort & Spa] PROPERTY TOUR PRESENTATION JUNE 2015 SUNSTONE HOTEL INVESTORS, INC. 62

  101. Slide 101: Kid’s Center – Renderings

    Kid’s Center – Renderings [Wailea Beach Resort & Spa] PROPERTY TOUR PRESENTATION JUNE 2015 SUNSTONE HOTEL INVESTORS, INC. 63

  102. Slide 102: Kid’s Center – Renderings

    Kid’s Center – Renderings [Wailea Beach Resort & Spa] PROPERTY TOUR PRESENTATION JUNE 2015 SUNSTONE HOTEL INVESTORS, INC. 64

  103. Slide 103: Family & Teen Center – Renderings

    Family & Teen Center – Renderings [Wailea Beach Resort & Spa] PROPERTY TOUR PRESENTATION JUNE 2015 SUNSTONE HOTEL INVESTORS, INC. 65

  104. Slide 104: Movie House – Renderings

    Movie House – Renderings [Wailea Beach Resort & Spa] PROPERTY TOUR PRESENTATION JUNE 2015 SUNSTONE HOTEL INVESTORS, INC. 66

  105. Slide 105: Fitness Center – Renderings including 40% expansion

    Fitness Center – Renderings including 40% expansion [Wailea Beach Resort & Spa] PROPERTY TOUR PRESENTATION JUNE 2015 SUNSTONE HOTEL INVESTORS, INC. 67

  106. Slide 106: Arrival / Departure Lounge – Renderings

    Arrival / Departure Lounge – Renderings [Wailea Beach Resort & Spa] PROPERTY TOUR PRESENTATION JUNE 2015 SUNSTONE HOTEL INVESTORS, INC. 68

  107. Slide 107: Guest Rooms

    Guest Rooms [Wailea Beach Resort & Spa] PROPERTY TOUR PRESENTATION JUNE 2015 SUNSTONE HOTEL INVESTORS, INC. 69

  108. Slide 108: Guest Room – Current

    Guest Room – Current [Wailea Beach Resort & Spa] SUNSTONE HOTEL INVESTORS, INC. 70 PROPERTY TOUR PRESENTATION JUNE 2015

  109. Slide 109: Guest Room – Model Room

    Guest Room – Model Room [Wailea Beach Resort & Spa] SUNSTONE HOTEL INVESTORS, INC. 72 PROPERTY TOUR PRESENTATION JUNE 2015

  110. Slide 110: Guest Room – Model Room

    Guest Room – Model Room [Wailea Beach Resort & Spa] SUNSTONE HOTEL INVESTORS, INC. 73 PROPERTY TOUR PRESENTATION JUNE 2015

  111. Slide 111: Guest Room Walk Out – Model Room

    Guest Room Walk Out – Model Room [Wailea Beach Resort & Spa] SUNSTONE HOTEL INVESTORS, INC. 74 PROPERTY TOUR PRESENTATION JUNE 2015

  112. Slide 112: Wailea Beach Resort & Spa EBITDA Reconciliation

    Wailea Beach Resort & Spa [EBITDA Reconciliation] PROPERTY TOUR PRESENTATION JUNE 2015 SUNSTONE HOTEL INVESTORS, INC. 75 Plus: Equals: Hotel Less: Equals: Total Hotel EBITDA Hotel Net FFO Revenues Net Income Depreciation EBITDA Margin FF&E Reserve Operating Income Contribution Full Year 2013 (1) (2)

Sunstone Hotel Investors — Corporate Update (June 2015) on 6ix