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Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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MIC-Info: RSA-MD5,RSA,
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<SEC-DOCUMENT>0001181431-05-011201.txt : 20050218
<SEC-HEADER>0001181431-05-011201.hdr.sgml : 20050218
<ACCEPTANCE-DATETIME>20050218102749
ACCESSION NUMBER:		0001181431-05-011201
CONFORMED SUBMISSION TYPE:	4
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20050216
FILED AS OF DATE:		20050218
DATE AS OF CHANGE:		20050218

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			Sunstone Hotel Investors, Inc.
		CENTRAL INDEX KEY:			0001295810
		STANDARD INDUSTRIAL CLASSIFICATION:	HOTELS & MOTELS [7011]
		IRS NUMBER:				201296886
		STATE OF INCORPORATION:			MD
		FISCAL YEAR END:			1231

	BUSINESS ADDRESS:	
		STREET 1:		903 CALLE AMANECER, SUITE 100
		CITY:			SAN CLEMENTE
		STATE:			CA
		ZIP:			92673
		BUSINESS PHONE:		949-369-4000

	MAIL ADDRESS:	
		STREET 1:		903 CALLE AMANECER, SUITE 100
		CITY:			SAN CLEMENTE
		STATE:			CA
		ZIP:			92673

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			Stougaard Gary A
		CENTRAL INDEX KEY:			0001306264

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-32319
		FILM NUMBER:		05626039

	BUSINESS ADDRESS:	
		BUSINESS PHONE:		949-369-4000

	MAIL ADDRESS:	
		STREET 1:		903 CALLE AMANECER
		STREET 2:		SUITE 100
		CITY:			SAN CLEMENTE
		STATE:			CA
		ZIP:			92673
</SEC-HEADER>
<DOCUMENT>
<TYPE>4
<SEQUENCE>1
<FILENAME>rrd69579.xml
<DESCRIPTION>STOUGAARD 2/16/05 FORM 4
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0202</schemaVersion>

    <documentType>4</documentType>

    <periodOfReport>2005-02-16</periodOfReport>

    <notSubjectToSection16>0</notSubjectToSection16>

    <issuer>
        <issuerCik>0001295810</issuerCik>
        <issuerName>Sunstone Hotel Investors, Inc.</issuerName>
        <issuerTradingSymbol>SHO</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001306264</rptOwnerCik>
            <rptOwnerName>Stougaard Gary A</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>903 CALLE AMANECER</rptOwnerStreet1>
            <rptOwnerStreet2>SUITE 100</rptOwnerStreet2>
            <rptOwnerCity>SAN CLEMENTE</rptOwnerCity>
            <rptOwnerState>CA</rptOwnerState>
            <rptOwnerZipCode>92673</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>1</isOfficer>
            <isTenPercentOwner>0</isTenPercentOwner>
            <isOther>0</isOther>
            <officerTitle>Exec VP and CIO</officerTitle>
        </reportingOwnerRelationship>
    </reportingOwner>

    <nonDerivativeTable>
        <nonDerivativeTransaction>
            <securityTitle>
                <value>Common Stock</value>
            </securityTitle>
            <transactionDate>
                <value>2005-02-16</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>A</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>69079</value>
                </transactionShares>
                <transactionPricePerShare>
                    <footnoteId id="F1"/>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>A</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>83942</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </nonDerivativeTransaction>
    </nonDerivativeTable>

    <derivativeTable>
        <derivativeTransaction>
            <securityTitle>
                <value>Restricted Stock Units</value>
            </securityTitle>
            <conversionOrExercisePrice>
                <footnoteId id="F1"/>
            </conversionOrExercisePrice>
            <transactionDate>
                <value>2005-02-16</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>D</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>69079</value>
                </transactionShares>
                <transactionPricePerShare>
                    <footnoteId id="F1"/>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>D</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <exerciseDate>
                <footnoteId id="F1"/>
            </exerciseDate>
            <expirationDate>
                <footnoteId id="F1"/>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>Common Stock</value>
                </underlyingSecurityTitle>
                <underlyingSecurityShares>
                    <value>69079</value>
                </underlyingSecurityShares>
            </underlyingSecurity>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>0</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </derivativeTransaction>
    </derivativeTable>

    <footnotes>
        <footnote id="F1">On October 26, 2004, Mr. Stougaard was granted an aggregate of 92,105 restricted stock units, subject to the satisfaction of vesting requirements over a five-year period.  On October 26, 2004, 23,026 restricted stock units vested, and 8,163 shares of Common Stock were withheld to satisfy tax withholding obligations.  On February 16, 2004, Mr. Stougaard executed the Restricted Stock Unit Cancellation and Termination Agreement, in which Sunstone Hotel Investors, Inc. agreed to grant to Mr. Stougaard 69,079 shares of restricted stock in consideration for the termination of the unvested restricted stock units.</footnote>
    </footnotes>

    <ownerSignature>
        <signatureName>/s/ Gary A. Stougaard</signatureName>
        <signatureDate>2005-02-18</signatureDate>
    </ownerSignature>
</ownershipDocument>
</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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