SUNSTONE HOTEL INVESTORS, INC.

SCHEDULE III—REAL ESTATE AND ACCUMULATED DEPRECIATION

DECEMBER 31, 2015

(In thousands)


								Cost Capitalized				Gross Amount at
				Initial costs				Subsequent to Acquisition				December 31, 2015 (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	$	114,215		$	58,527	$	170,589	$	—	$	51,424	$	58,527	$	222,013	$	280,540	$	18,681	2013	5-35
Courtyard by Marriott Los Angeles		—	(2)		—		8,446		—		13,185		—		21,631		21,631		10,016	1999	5-35
Embassy Suites Chicago		67,818			79		46,886		6,348		21,470		6,427		68,356		74,783		26,568	2002	5-35
Embassy Suites La Jolla		64,004			27,900		70,450		—		9,900		27,900		80,350		108,250		25,917	2006	5-35
Fairmont Newport Beach		—	(2)		—		65,769		11,000		34,442		11,000		100,211		111,211		34,087	2005	5-35
Hilton New Orleans St. Charles		—	(2)		3,698		53,578		—		6,841		3,698		60,419		64,117		3,294	2013	5-35
Hilton North Houston		—			6,184		35,628		—		23,898		6,184		59,526		65,710		22,279	2002	5-35
Hilton San Diego Bayfront		225,407			—		424,992		—		9,591		—		434,583		434,583		37,731	2011	5-57
Hilton Times Square		84,994			—		221,488		—		25,131		—		246,619		246,619		80,578	2006	5-35
Hilton Garden Inn Chicago Downtown/Magnificent Mile		—	(2)		14,040		66,350		—		7,997		14,040		74,347		88,387		5,353	2012	5-50
Hyatt Chicago Magnificent Mile		—	(2)		—		91,964		—		16,942		—		108,906		108,906		13,471	2012	5-40
Hyatt Regency Newport Beach		—	(2)		—		30,549		—		26,743		—		57,292		57,292		19,875	2002	5-35
Hyatt Regency San Francisco		—	(2)		116,140		131,430		—		19,313		116,140		150,743		266,883		14,749	2013	5-35
JW Marriott New Orleans		88,508			—		73,420		—		8,480		—		81,900		81,900		11,088	2011	5-35
Marriott Boston Long Wharf		176,000			51,598		170,238		—		37,718		51,598		207,956		259,554		60,889	2007	5-35
Marriott Houston		—			4,167		19,155		—		15,171		4,167		34,326		38,493		12,501	2002	5-35
Marriott Park City		—			2,260		17,778		—		15,331		2,260		33,109		35,369		13,278	1999	5-35
Marriott Philadelphia		—			3,297		29,710		—		10,566		3,297		40,276		43,573		16,042	2002	5-35
Marriott Portland		—	(2)		5,341		20,705		—		7,047		5,341		27,752		33,093		12,575	2000	5-35
Marriott Quincy		—	(2)		14,375		97,875		—		6,099		14,375		103,974		118,349		30,735	2007	5-35
Marriott Tysons Corner		—			3,897		43,528		(250)		16,336		3,647		59,864		63,511		24,363	2002	5-35
Wailea Beach Marriott Resort & Spa		—	(2)		119,707		194,137		—		140		119,707		194,277		313,984		8,345	2014	5-40
Renaissance Harborplace		—			25,085		102,707		—		22,689		25,085		125,396		150,481		42,779	2005	5-35
Renaissance Los Angeles Airport		—	(2)		7,800		52,506		—		7,029		7,800		59,535		67,335		17,663	2007	5-35
Renaissance Long Beach		—	(2)		10,437		37,300		—		18,902		10,437		56,202		66,639		17,750	2005	5-35
Renaissance Orlando at SeaWorld ®		73,615			—		119,733		30,716		35,735		30,716		155,468		186,184		52,219	2005	5-35
Renaissance Washington DC		121,919			14,563		132,800		—		43,062		14,563		175,862		190,425		57,211	2005	5-35
Renaissance Westchester (3)		—	(2)		5,751		17,069		—		19,100		5,751		36,169		41,920		6,851	2010	5-35
Sheraton Cerritos		—	(2)		—		24,737		—		7,763		—		32,500		32,500		10,849	2005	5-35
	$	1,016,480		$	494,846	$	2,571,517	$	47,814	$	538,045	$	542,660	$	3,109,562	$	3,652,222	$	707,737

SUNSTONE HOTEL INVESTORS, INC.

SCHEDULE III—REAL ESTATE AND ACCUMULATED DEPRECIATION

DECEMBER 31, 2015

(In thousands)


							Cost Capitalized				Gross Amount at
			Initial costs				Subsequent to Acquisition				December 31, 2015 (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 $4.0 billion (unaudited) at December 31, 2015.

(2)

Hotel is pledged as collateral by the credit facility entered into in April 2015. As of December 31, 2015, 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
	2015		2014		2013		2015		2014		2013

(1) Reconciliation of land and buildings and improvements:
Balance at the beginning of the year	$	3,807,607	$	3,416,762	$	2,801,963	$	188	$	188	$	188
Additions during year:
Acquisitions		—		324,844		533,962		—		—		—
Improvements		86,615		66,001		80,923		—		—		—
Dispositions		(242,000)		—		(86)		—		—		—
Balance at the end of the year	$	3,652,222	$	3,807,607	$	3,416,762	$	188	$	188	$	188
(2) Reconciliation of accumulated depreciation:
Balance at the beginning of the year	$	625,020	$	524,014	$	439,446	$	—	$	—	$	—
Depreciation		108,153		101,006		84,568		—		—		—
Retirement		(25,436)		—		—		—		—		—
Balance at the end of the year	$	707,737	$	625,020	$	524,014	$	—	$	—	$	—