Sunstone Hotel Investors, Inc. Announces Public Offering of 18 Million Common Shares
	The underwriters will be granted a 30-day option to purchase up to an additional 2,700,000 shares of common stock to cover over-allotments, if any.
Sunstone Hotel Investors, Inc. (NYSE:SHO) announced that it intends to issue 18,000,000 shares of its common stock. The underwriters will be granted a 30-day option to purchase up to an additional 2,700,000 shares of common stock to cover over-allotments, if any. The joint book runners for this offering are Citi, J.P. Morgan and Merrill Lynch & Co. The Company expects to contribute the net proceeds from this offering to Sunstone Hotel Partnership, LLC, its wholly owned subsidiary (the "Operating Partnership"), in exchange for additional membership interests in the Operating Partnership. The Operating Partnership will subsequently use those net proceeds from this offering for working capital and other general corporate purposes, including potentially the repayment of any amounts drawn on the Company's revolving credit facility, and/or the repurchase of the $123.5 million principal amount of 4.60% Exchangeable Senior Notes due 2027 of the Operating Partnership tendered pursuant to the Company's tender offer that expired on May 19, 2009, which repurchase will be consummated using approximately $86.5 million in cash. The shares of common stock are being offered pursuant to an effective registration statement filed with the Securities and Exchange Commission and may be made only by means of a prospectus. A copy of the prospectus relating to the offering will be filed with the Securities and Exchange Commission and, when available, can be obtained from the offices of Citi at Attn: Prospectus Department, Brooklyn Army Terminal, 140 58th Street, 8th Floor, Brooklyn, NY 11220, telephone: (800) 831-9146; from the offices of J.P. Morgan Securities Inc. at Prospectus Library, 4 Chase Metrotech Center, CS Level, Brooklyn, NY 11245, telephone: (718) 242-8002; and from the offices of Merrill Lynch, Pierce, Fenner & Smith Incorporated at Attn: Prospectus Department, 4 World Financial Center, New York, NY 10080.