IRVINE, Calif.June 1, 2022 — Sunstone Hotel Investors, Inc. (the “Company” or “Sunstone”) (NYSE: SHO), the owner of Long-Term Relevant Real Estate® in the lodging industry, announced that it has entered into a definitive agreement with an affiliate of Park Hotels & Resorts Inc. (“Park”) to acquire Park’s 25% interest in the joint venture that owns the leasehold interest in the 1,190-room Hilton San Diego Bayfront (the “Hotel”). As part of the transaction, Sunstone will pay Park $102 million in cash and will effectively assume Park’s $55 million share of the existing mortgage loan on the Hotel, which is already fully consolidated as part of Sunstone’s financial statements. Following the acquisition, Sunstone will own 100% of the venture’s interests in the Hotel.

The purchase price, including the in-place debt, implies a $628 million value for the Hotel, or $527,700 per key, and represents a 13.2x multiple on the Hotel’s 2022 forecasted EBITDA and a 6.6% capitalization rate on 2022 forecasted net operating income. The Company currently anticipates closing the transaction by the end of the second quarter 2022 and expects to fund the acquisition primarily from borrowing on the Company’s revolving credit facility.

Bryan Giglia, Chief Executive Officer, stated, “We are pleased to announce our acquisition of the remaining 25% joint venture interest in the Hilton San Diego Bayfront. This is a very well-located, high-quality asset in a premier convention and leisure market. The hotel is in excellent physical condition, and with the recent addition of new meeting space, a refreshed lobby, and enhanced food & beverage offerings, the hotel is well positioned to benefit from strong leisure travel and recovering business transient and corporate group demand. We thank our partners at Park for their collaboration over the years and believe this transaction, which consolidates ownership for Sunstone and provides Park with a fair valuation for their ownership interest, is a mutually beneficial outcome for both parties.”

The acquisition is subject to the satisfaction of customary closing conditions, and the Company can give no assurance that the transaction will close. The forecast amounts referenced in this release are based on the Company’s assumptions of operating performance and the Company cannot assure you that the forecasts will be achieved.