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Sunstone Hotel Investors (Sunstone Hotel Investors) Debt-to-EBITDA : 1.21 (As of Dec. 2023)


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What is Sunstone Hotel Investors Debt-to-EBITDA?

Debt-to-EBITDA measures a company's ability to pay off its debt.

Sunstone Hotel Investors's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $74.1 Mil. Sunstone Hotel Investors's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $757.2 Mil. Sunstone Hotel Investors's annualized EBITDA for the quarter that ended in Dec. 2023 was $686.4 Mil. Sunstone Hotel Investors's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2023 was 1.21.

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.

The historical rank and industry rank for Sunstone Hotel Investors's Debt-to-EBITDA or its related term are showing as below:

SHO' s Debt-to-EBITDA Range Over the Past 10 Years
Min: -3.65   Med: 2.8   Max: 4.59
Current: 2.14

During the past 13 years, the highest Debt-to-EBITDA Ratio of Sunstone Hotel Investors was 4.59. The lowest was -3.65. And the median was 2.80.

SHO's Debt-to-EBITDA is ranked better than
88.06% of 511 companies
in the REITs industry
Industry Median: 7.15 vs SHO: 2.14

Sunstone Hotel Investors Debt-to-EBITDA Historical Data

The historical data trend for Sunstone Hotel Investors's Debt-to-EBITDA can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Sunstone Hotel Investors Debt-to-EBITDA Chart

Sunstone Hotel Investors Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Debt-to-EBITDA
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.03 -3.65 3.28 3.34 2.15

Sunstone Hotel Investors Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Debt-to-EBITDA Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.42 3.09 2.34 3.36 1.21

Competitive Comparison of Sunstone Hotel Investors's Debt-to-EBITDA

For the REIT - Hotel & Motel subindustry, Sunstone Hotel Investors's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Sunstone Hotel Investors's Debt-to-EBITDA Distribution in the REITs Industry

For the REITs industry and Real Estate sector, Sunstone Hotel Investors's Debt-to-EBITDA distribution charts can be found below:

* The bar in red indicates where Sunstone Hotel Investors's Debt-to-EBITDA falls into.



Sunstone Hotel Investors Debt-to-EBITDA Calculation

Debt-to-EBITDA measures a company's ability to pay off its debt.

Sunstone Hotel Investors's Debt-to-EBITDA for the fiscal year that ended in Dec. 2023 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(74.05 + 757.244) / 387.311
=2.15

Sunstone Hotel Investors's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2023 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(74.05 + 757.244) / 686.396
=1.21

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data, the EBITDA data used here is four times the quarterly (Dec. 2023) EBITDA data.


Sunstone Hotel Investors  (NYSE:SHO) Debt-to-EBITDA Explanation

In the calculation of Debt-to-EBITDA, we use the total of Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation divided by EBITDA. In some calculations, Total Liabilities is used to for calculation.


Be Aware

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.

According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.


Sunstone Hotel Investors Debt-to-EBITDA Related Terms

Thank you for viewing the detailed overview of Sunstone Hotel Investors's Debt-to-EBITDA provided by GuruFocus.com. Please click on the following links to see related term pages.


Sunstone Hotel Investors (Sunstone Hotel Investors) Business Description

Traded in Other Exchanges
Address
15 Enterprise, Suite 200, Aliso Viejo, CA, USA, 92656
Sunstone Hotel Investors Inc is a real estate investment trust that acquires, owns, manages, and renovates the full-service hotel and select-service hotel properties across various states in the United States. The firm's portfolio consists primarily of urban, upper-upscale hotels. The vast majority of these hotels are managed under Marriott, Hilton, Fairmont, and Sheraton brands. Regionally, the company's assets are located in its California, Other West, Midwest, and East geographical segments within the U.S. The majority of the company's revenue is derived from its Eastern operations, closely followed by its Californian operations. Sunstone's sole source of income is hotel revenue from its hotel ownership segment.
Executives
Robert C Springer officer: SVP - Acquisitions 200 SPECTRUM CENTER DRIVE, SUITE 2100, IRVINE CA 92618
Aaron Robert Reyes officer: Chief Financial Officer 200 SPECTRUM CENTER DRIVE, 21ST FLOOR, IRVINE CA 92618
Douglas M Pasquale director 245 FICHER AVE STE D-1, COSTA MESA CA 92626
David M Klein officer: SVP - General Counsel 200 SPECTRUM CENTER DRIVE, SUITE 2100, IRVINE CA 92618
Verett Ann Mims director 15 ENTERPRISE, SUITE 200, ALISO VIEJO CA 92656
Kristina M Leslie director DREAMWORKS ANIMATION SKG, INC., 1000 FLOWER STREET, GLENDALE CA 91201
Keith P Russell director 200 SPECTRUM CENTER DRIVE, SUITE 2100, IRVINE CA 92618
Christopher Gerard Ostapovicz officer: Chief Operating Officer 200 SPECTRUM CENTER DRIVE, 21ST FLOOR, IRVINE CA 92618
Marc Andrew Hoffman officer: EVP - Chief Operating Officer 200 SPECTRUM CENTER DRIVE, SUITE 2100, IRVINE CA 92618
W Blake Baird director 1411 SAND ISLAND PARKWAY, HONOLULU HI 96819
Monica S Digilio director ONE CAESARS PALACE DRIVE, LAS VEGAS NV 89109
Murray J. Mccabe director 1170 PEACHTREE STREET NE, SUITE 600, ATLANTA GA 30309
John V Arabia officer: Executive Vice President - CFO 200 SPECTRUM CENTER DRIVE, SUITE 2100, IRVINE CA 92618
Bryan Albert Giglia officer: SVP - Chief Financial Officer 200 SPECTRUM CENTER DRIVE, 21ST FLOOR, IRVINE CA 92618
Thomas A Lewis director 200 SPECTRUM CENTER DRIVE, SUITE 2100, IRVINE CA 92618