Robert A. Alter, Sunstone's Chief Executive Officer, stated, "The Sutton Place represents an excellent opportunity to renovate and reposition an underperforming property back into one of Orange County's premier luxury business hotels.  The property will benefit from Fairmont's luxury brand profile, strong presence in the California market and global distribution network.  We look forward to developing this partnership with Fairmont."

Mr. Alter added, "This is our first acquisition since the October IPO.  We are pleased to be acquiring such a high quality asset and reiterate that this type of hotel is consistent with our investment objectives of acquiring high quality hotels with multiple demand generators, associated with leading brands and at a discount to replacement cost in markets with high barriers to new development."

"Fairmont is pleased about this opportunity to establish a relationship with Sunstone, a well-known hotel owner," said William R. Fatt, FHR's Chief Executive Officer.  "We look forward to working with our new partner to further strengthen the quality and performance of this property that is located in an active center for commerce and tourism."

About Sutton Place Hotel Newport Beach
Located near John Wayne Orange County Airport and five miles from the beach, the Hotel is situated in the center of Orange County's commercial business center.  A third floor outdoor sky pool, tennis courts and three restaurants cater to leisure needs while nearby South Coast Plaza, the theme parks of Anaheim and the beaches of Newport Beach provide a full range of diversions, from shopping and sunbathing to professional sports.

About Sunstone Hotel Investors, Inc.
Sunstone Hotel Investors, Inc. is a Southern California-based lodging real estate investment trust (REIT).  The Company currently owns 52 hotels primarily in the upper-upscale and upscale segments operated under franchises owned by nationally recognized brands such as Marriott, Hilton, InterContinental, Hyatt and Fairmont.  For further information, please visit the Company's website at http://www.sunstonehotels.com.

About Fairmont Hotels & Resorts Inc.
FHR is one of North America's leading owner/operators of luxury hotels and resorts.  FHR's managed portfolio consists of 83 luxury and first-class properties with more than 33,000 guestrooms in the United States, Canada, Mexico, Bermuda, Barbados, United Kingdom, Monaco and the United Arab Emirates. 

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