SUNSTONE HOTEL INVESTORS, INC.

SCHEDULE III—REAL ESTATE AND ACCUMULATED DEPRECIATION

DECEMBER 31, 2014

(In thousands)


								Cost Capitalized				Gross Amount at
				Initial costs				Subsequent to Acquisition				December 31, 2014 (1)
						Bldg. and				Bldg. and				Bldg. and				Accum.		Date	Depr.
	Encmbr			Land		Impr		Land		Impr.		Land		Impr.		Totals		Depr.		Acq./Constr.	Life
Boston Park Plaza	$	116,281		$	58,527	$	170,589	$	—	$	13,105	$	58,527	$	183,694	$	242,221	$	10,042	2013	5-35
Courtyard by Marriott Los Angeles			(2)		—		8,446		—		12,870		—		21,316		21,316		9,248	1999	5-35
Doubletree Guest Suites Times Square		177,216			27,351		201,660		—		11,718		27,351		213,378		240,729		19,788	2011	5-35
Embassy Suites Chicago		69,370			79		46,886		6,348		20,703		6,427		67,589		74,016		24,078	2002	5-35
Embassy Suites La Jolla		65,000			27,900		70,450		—		8,959		27,900		79,409		107,309		23,182	2006	5-35
Fairmont Newport Beach			(2)		—		65,769		11,000		33,848		11,000		99,617		110,617		30,703	2005	5-35
Hilton New Orleans St. Charles		—			3,698		53,578		—		1,124		3,698		54,702		58,400		1,946	2013	5-35
Hilton North Houston		31,253			6,184		35,628		—		23,512		6,184		59,140		65,324		20,125	2002	5-35
Hilton San Diego Bayfront		228,296			—		424,992		—		8,912		—		433,904		433,904		29,463	2011	5-57
Hilton Times Square		86,606			—		221,488		—		24,768		—		246,256		246,256		72,049	2006	5-35
Hilton Garden Inn Chicago Downtown/Magnificent Mile		—			14,040		66,350		—		7,086		14,040		73,436		87,476		3,609	2012	5-50
Hyatt Chicago Magnificent Mile		—			—		91,964		—		16,512		—		108,476		108,476		9,436	2012	5-40
Hyatt Regency Newport Beach			(2)		—		30,549		—		25,801		—		56,350		56,350		17,690	2002	5-35
Hyatt Regency San Francisco		—			116,140		131,430		—		8,027		116,140		139,457		255,597		7,387	2013	5-35
JW Marriott New Orleans		90,000			—		73,420		—		4,324		—		77,744		77,744		8,643	2011	5-35
Marriott Boston Long Wharf		176,000			51,598		170,238		—		37,002		51,598		207,240		258,838		53,672	2007	5-35
Marriott Houston		20,943			4,167		19,155		—		13,921		4,167		33,076		37,243		11,141	2002	5-35
Marriott Park City		13,652			2,260		17,778		—		12,749		2,260		30,527		32,787		12,116	1999	5-35
Marriott Philadelphia		24,737			3,297		29,710		—		9,629		3,297		39,339		42,636		14,597	2002	5-35
Marriott Portland			(2)		5,341		20,705		—		6,863		5,341		27,568		32,909		11,598	2000	5-35
Marriott Quincy			(2)		14,375		97,875		—		4,651		14,375		102,526		116,901		27,284	2007	5-35
Marriott Tysons Corner		40,866			3,897		43,528		(250)		16,191		3,647		59,719		63,366		22,222	2002	5-35
Marriott Wailea		—			119,707		194,137		—		—		119,707		194,137		313,844		2,782	2014	5-40
Renaissance Harborplace		88,901			25,085		102,707		—		21,889		25,085		124,596		149,681		38,504	2005	5-35
Renaissance Los Angeles Airport			(2)		7,800		52,506		—		4,435		7,800		56,941		64,741		15,595	2007	5-35
Renaissance Long Beach			(2)		10,437		37,300		—		18,526		10,437		55,826		66,263		15,758	2005	5-35
Renaissance Orlando at Sea World ®		75,923			—		119,733		30,716		34,704		30,716		154,437		185,153		46,812	2005	5-35
Renaissance Washington DC		124,248			14,563		132,800		—		37,178		14,563		169,978		184,541		50,797	2005	5-35
Renaissance Westchester (3)			(2)		5,751		17,069		—		17,811		5,751		34,880		40,631		5,045	2010	5-35
Sheraton Cerritos			(2)		—		24,737		—		7,601		—		32,338		32,338		9,708	2005	5-35
	$	1,429,292		$	522,197	$	2,773,177	$	47,814	$	464,419	$	570,011	$	3,237,596	$	3,807,607	$	625,020

SUNSTONE HOTEL INVESTORS, INC.

SCHEDULE III—REAL ESTATE AND ACCUMULATED DEPRECIATION

DECEMBER 31, 2014

(In thousands)


							Cost Capitalized				Gross Amount at
			Initial costs				Subsequent to Acquisition				December 31, 2014 (1)
					Bldg. and				Bldg. and				Bldg. and				Accum.		Date	Depr.
	Encmbr.		Land		Impr.		Land		Impr		Land		Impr.		Totals		Depr.		Acq./Constr.	Life
Investments in Other Real Estate
Land held for future development or sale	$	—	$	4,500	$	—	$	(4,312)	$	—	$	188	$	—	$	188	$	—	1999	NA
	$	—	$	4,500	$	—	$	(4,312)	$	—	$	188	$	—	$	188	$	—

(1)

The aggregate cost of properties for federal income tax purposes is approximately $3.7 billion (unaudited) at December 31, 2014.

(2)

Hotel is pledged as collateral by the credit facility entered into in November 2010. As of December 31, 2014, the Company has no outstanding indebtedness under its credit facility.

(3)

Hotel originally acquired in 2005. Possession and control of the hotel transferred to a receiver in December 2009, and the Company reacquired the hotel in June 2010.


	Hotel Properties						Other Real Estate Investments
	2014		2013		2012		2014		2013		2012

(1) Reconciliation of land and buildings and improvements:
Balance at the beginning of the year	$	3,416,762	$	2,801,963	$	2,904,975	$	188	$	188	$	12,437
Additions during year:
Acquisitions		324,844		533,962		172,354		—		—		—
Improvements		66,001		80,923		46,831		—		—		50
Changes in reporting presentation (a)		—		—		(163,455)		—		—		(9,793)
Disposals during the year (a)		—		(86)		(158,742)		—		—		(2,506)
Balance at the end of the year	$	3,807,607	$	3,416,762	$	2,801,963	$	188	$	188	$	188
(2) Reconciliation of accumulated depreciation:
Balance at the beginning of the year	$	524,014	$	439,446	$	457,431	$	—	$	—	$	2,865
Depreciation for the year		101,006		84,568		82,871		—		—		301
Changes in reporting presentation		—		—		(58,364)		—		—		(2,740)
Retirement		—		—		(42,492)		—		—		(426)
Balance at the end of the year	$	625,020	$	524,014	$	439,446	$	—	$	—	$	—

(a)

2012 changes in reporting presentation and 2013 disposals during the year represent the Rochester Portfolio classified as held for sale as of December 31, 2012 due to its sale in January 2013.