Preliminary Operations Update Through March 31, 2009:    --  March total portfolio RevPAR was $97.38, down 21.3% to prior year.    --  First quarter total portfolio RevPAR was $96.18, down 16.0% to prior       year.    

Arthur Buser, President and Chief Executive Officer, stated, "As hotel demand remains soft, we focus our efforts on driving our hotels' top line while managing costs to maintain margins. Today, we separately announced a tender offer and consent solicitation by our Operating Partnership aimed at strengthening our balance sheet and providing us with the flexibility necessary to preserve cash and maximize the value of our company."

Tender Offer and Consent

The Company separately announced today Sunstone Hotel Partnership, LLC, the Company's wholly owned subsidiary and operating partnership (the "Operating Partnership") expects to commence on April 17, 2009 a cash tender offer to purchase any and all of the Operating Partnership's 4.60% Exchangeable Senior Notes due 2027 (the "Notes") at a price of $600 per Note and a solicitation of consents from the holders of the Notes with respect to an amendment of the indenture under which the Notes were issued.

Credit Facility Amendment

The Company is in the process of negotiating an amendment to its $200 million revolving credit facility. The Company expects to reach an agreement that would result in financial covenant relief in exchange for a reduction in the facility's size and first mortgage liens on certain of its currently unencumbered hotels.

Business Update Call

The Company will host a conference call to discuss its operations update on April 16, 2009, at 2 p.m. PDT. A live web cast of the call will be available via the Investor Relations section of the Company's website at http://www.sunstonehotels.com/. Alternatively, investors may dial 1-800-218-0713 (for domestic callers) or 303-228-2960 (for international callers). A replay of the web cast will also be archived on the website.

About Sunstone Hotel Investors, Inc.

Sunstone Hotel Investors, Inc. is a lodging real estate investment trust ("REIT") that, as of the date hereof, has interests in 44 hotels comprised of 15,029 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/.