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Sunstone Hotel Investors (Sunstone Hotel Investors) Gross Margin %

: 46.07% (As of Dec. 2023)
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Gross Margin % is calculated as gross profit divided by its revenue. Sunstone Hotel Investors's Gross Profit for the three months ended in Dec. 2023 was $101.0 Mil. Sunstone Hotel Investors's Revenue for the three months ended in Dec. 2023 was $219.2 Mil. Therefore, Sunstone Hotel Investors's Gross Margin % for the quarter that ended in Dec. 2023 was 46.07%.


The historical rank and industry rank for Sunstone Hotel Investors's Gross Margin % or its related term are showing as below:

SHO' s Gross Margin % Range Over the Past 10 Years
Min: 6.05   Med: 52.27   Max: 53.01
Current: 48.81


During the past 13 years, the highest Gross Margin % of Sunstone Hotel Investors was 53.01%. The lowest was 6.05%. And the median was 52.27%.

SHO's Gross Margin % is ranked worse than
86.44% of 634 companies
in the REITs industry
Industry Median: 68.745 vs SHO: 48.81

Sunstone Hotel Investors had a gross margin of 46.07% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Sunstone Hotel Investors was 3.70% per year.


Sunstone Hotel Investors Gross Margin % Historical Data

The historical data trend for Sunstone Hotel Investors's Gross Margin % 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 Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 52.40 6.05 40.62 49.08 48.35

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
Gross Margin % 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 Premium Member Only Premium Member Only Premium Member Only 50.06 48.26 53.00 47.12 46.07

Competitive Comparison

For the REIT - Hotel & Motel subindustry, Sunstone Hotel Investors's Gross Margin %, along with its competitors' market caps and Gross Margin % 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 Gross Margin % Distribution

For the REITs industry and Real Estate sector, Sunstone Hotel Investors's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Sunstone Hotel Investors's Gross Margin % falls into.



Sunstone Hotel Investors Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Sunstone Hotel Investors's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )=Gross Profit (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=477 / 986.48
=(Revenue - Cost of Goods Sold) / Revenue
=(986.48 - 509.523) / 986.48
=48.35 %

Sunstone Hotel Investors's Gross Margin for the quarter that ended in Dec. 2023 is calculated as


Gross Margin % (Q: Dec. 2023 )=Gross Profit (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=101 / 219.225
=(Revenue - Cost of Goods Sold) / Revenue
=(219.225 - 118.239) / 219.225
=46.07 %

* 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.

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.


Sunstone Hotel Investors  (NYSE:SHO) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Sunstone Hotel Investors had a gross margin of 46.07% for the quarter that ended in Dec. 2023 => Durable competitive advantage


Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.


Sunstone Hotel Investors Gross Margin % Related Terms

Thank you for viewing the detailed overview of Sunstone Hotel Investors's Gross Margin % 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