SUNSTONE HOTEL INVESTORS, INC.

SCHEDULE III—REAL ESTATE AND ACCUMULATED DEPRECIATION

DECEMBER 31, 2016

(In thousands)


								Cost Capitalized				Gross Amount at
				Initial costs				Subsequent to Acquisition				December 31, 2016 (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	$	—	(2)	$	58,527	$	170,589	$	—	$	96,236	$	58,527	$	266,825	$	325,352	$	29,482	2013	5-35
Courtyard by Marriott Los Angeles		—	(2)		—		8,446		—		13,537		—		21,983		21,983		10,770	1999	5-35
Embassy Suites Chicago		—			79		46,886		6,348		21,671		6,427		68,557		74,984		29,076	2002	5-35
Embassy Suites La Jolla		62,886			27,900		70,450		—		12,885		27,900		83,335		111,235		28,767	2006	5-35
Hilton Garden Inn Chicago Downtown/Magnificent Mile		—	(2)		14,040		66,350		—		8,632		14,040		74,982		89,022		7,143	2012	5-50
Hilton New Orleans St. Charles		—	(2)		3,698		53,578		—		7,261		3,698		60,839		64,537		4,857	2013	5-35
Hilton North Houston		—			6,184		35,628		—		24,402		6,184		60,030		66,214		24,456	2002	5-35
Hilton San Diego Bayfront		222,340			—		424,992		—		9,874		—		434,866		434,866		46,037	2011	5-57
Hilton Times Square		83,311			—		221,488		—		30,469		—		251,957		251,957		89,118	2006	5-35
Hyatt Centric Chicago Magnificent Mile		—	(2)		—		91,964		—		17,122		—		109,086		109,086		17,518	2012	5-40
Hyatt Regency Newport Beach		—	(2)		—		30,549		—		27,630		—		58,179		58,179		22,125	2002	5-35
Hyatt Regency San Francisco		—	(2)		116,140		131,430		—		36,387		116,140		167,817		283,957		23,122	2013	5-35
JW Marriott New Orleans		86,963			—		73,420		—		12,144		—		85,564		85,564		13,795	2011	5-35
Marriott Boston Long Wharf		176,000			51,598		170,238		—		38,302		51,598		208,540		260,138		68,146	2007	5-35
Marriott Houston		—			4,167		19,155		—		15,518		4,167		34,673		38,840		13,885	2002	5-35
Marriott Park City		—			2,260		17,778		—		18,217		2,260		35,995		38,255		14,614	1999	5-35
Marriott Philadelphia		—			3,297		29,710		—		14,946		3,297		44,656		47,953		17,676	2002	5-35
Marriott Portland		—	(2)		5,341		20,705		—		7,249		5,341		27,954		33,295		13,488	2000	5-35
Marriott Quincy		—	(2)		14,375		97,875		—		7,507		14,375		105,382		119,757		34,290	2007	5-35
Marriott Tysons Corner		—			3,897		43,528		(250)		16,659		3,647		60,187		63,834		26,516	2002	5-35
Wailea Beach Resort		—	(2)		119,707		194,137		—		59,394		119,707		253,531		373,238		14,308	2014	5-40
Renaissance Harborplace		—			25,085		102,707		—		25,365		25,085		128,072		153,157		47,124	2005	5-35
Renaissance Los Angeles Airport		—	(2)		7,800		52,506		—		7,823		7,800		60,329		68,129		19,823	2007	5-35
Renaissance Long Beach		—	(2)		10,437		37,300		—		20,058		10,437		57,358		67,795		19,794	2005	5-35
Renaissance Orlando at SeaWorld ®		—			—		119,733		30,716		40,077		30,716		159,810		190,526		57,792	2005	5-35
Renaissance Washington DC		119,444			14,563		132,800		—		44,884		14,563		177,684		192,247		63,937	2005	5-35
Renaissance Westchester (3)		—	(2)		5,751		17,069		—		20,546		5,751		37,615		43,366		8,748	2010	5-35
	$	750,944		$	494,846	$	2,481,011	$	36,814	$	654,795	$	531,660	$	3,135,806	$	3,667,466	$	766,407

(1)

The aggregate cost of properties for federal income tax purposes is approximately $4.1 billion (unaudited) at December 31, 2016.

(2)

Hotel is pledged as collateral by the Company’s credit facility. As of December 31, 2016, 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
	2016		2015		2014

(1) Reconciliation of land and buildings and improvements:
Balance at the beginning of the year	$	3,652,222	$	3,807,607	$	3,416,762
Additions during year:
Acquisitions		—		—		324,844
Improvements		159,786		86,615		66,001
Changes in reporting presentation		(112,023)		—		—
Dispositions		(32,519)		(242,000)		—
Balance at the end of the year	$	3,667,466	$	3,652,222	$	3,807,607
(2) Reconciliation of accumulated depreciation:
Balance at the beginning of the year	$	707,737	$	625,020	$	524,014
Depreciation		107,409		108,153		101,006
Changes in reporting presentation		(37,506)		—		—
Retirement		(11,233)		(25,436)		—
Balance at the end of the year	$	766,407	$	707,737	$	625,020