SAN CLEMENTE, Calif., Nov. 20 /PRNewswire-FirstCall/ -- Sunstone Hotel Investors, Inc. (NYSE: SHO) announced today that it has designated the new shelf registration statement that it filed on November 6, 2008 with the Securities and Exchange Commission (the "Commission") to replace the existing shelf registration statement that was previously designated on October 12, 2007 pursuant to the terms of the Registration Rights Agreement among it, Sunstone Hotel Partnership, LLC (the "Operating Partnership"), Bear Stearns & Co. Inc., Citigroup Global Markets Inc. and Wachovia Capital Markets, LLC, dated June 18, 2007, and the Registration Rights Agreement among it, the Operating Partnership and Bear Stearns & Co, Inc., dated June 27, 2007, both relating to Sunstone Hotel Partnership, LLC's 4.60% Exchangeable Senior Notes due 2027. The previously designated shelf was set to expire on December 20, 2008. The new shelf registration statement became effective today and, among other things, allows electing holders of notes who may receive shares of common stock issuable upon exchange of the notes to effect resales of the shares of common stock under a prospectus included in the new shelf registration statement. The exchangeable notes were offered and sold on June 18, 2007 and June 27, 2007 to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended.

This announcement is neither an offer to sell nor the solicitation of an offer to buy the exchangeable notes or the shares of common stock that may be issuable upon exchange of the exchangeable notes and shall not constitute an offer in any jurisdiction in which such offer or solicitation is unlawful.

About Sunstone Hotel Investors, Inc.

Sunstone Hotel Investors, Inc. (the "Company") is a lodging real estate investment trust ("REIT") that, as of the date hereof, has interests in 45 hotels comprised of 15,349 rooms primarily in the upper-upscale segment operated under nationally recognized brands, such as Marriott, Hilton, Hyatt, Fairmont and Starwood. For further information, please visit the Company's website at http://www.sunstonehotels.com.

This press release contains forward-looking statements within the meaning of federal securities laws and regulations. These forward-looking statements are identified by their use of terms and phrases such as "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "plan," "predict," "project," "should," "will" and other similar terms and phrases, including references to assumptions and forecasts of future results. Forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors that may cause the actual results to differ materially from those anticipated at the time the forward-looking statements are made. These risks include, but are not limited to: volatility in the debt or equity markets affecting our ability to acquire or sell hotel assets; national and local economic and business conditions, including the likelihood of a U.S. recession, which may be prolonged; potential terrorist attacks, which would affect occupancy rates at the Company's hotels and the demand for hotel products and services; operating risks associated with the hotel business; risks associated with the level of the Company's indebtedness and the Company's ability to meet covenants in its debt agreements; relationships with property managers and franchisors; the Company's ability to maintain its properties in a first-class manner, including meeting capital expenditure requirements; the Company's ability to compete effectively in areas such as access, location, quality of accommodations and room rate structures; changes in travel patterns, taxes and government regulations, which influence or determine wages, prices, construction procedures and costs; the Company's ability to identify, successfully compete for and complete acquisitions; the performance of hotels after they are acquired; necessary capital expenditures and the Company's ability to fund them and complete them with minimum disruption; the Company's ability to continue to satisfy complex rules in order for it to qualify as a REIT for federal income tax purposes; and other risks and uncertainties associated with the Company's business described in its filings with the Commission. Although the Company believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that the expectations will be attained or that any deviation will not be material. All forward-looking information in this release is as of the date of this press release, and the Company undertakes no obligation to update any forward-looking statement to conform the statement to actual results or changes in the Company's expectations.

     For Additional Information:

     Bryan Giglia
     Vice President - Corporate Finance
     Sunstone Hotel Investors, Inc.
     (949) 369-4236

SOURCE Sunstone Hotel Investors, Inc.