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Sunstone Hotel InvestorsSHO +0.41%77 Gross Margin % is 50.73% as of Jun. 2026, which is 4% above its 10-year median of 48.72. GuruFocus rates SHO with a GF Score™ of 77/100 and a GF Value™ of $11.15 (Fairly Valued). The stock has 9 warning signs investors should review. Among 666 REITs companies, Sunstone Hotel Investors ranks worse than 86.19% on this metric.
Sunstone Hotel Investors (NYSE:SHO) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Sunstone Hotel Investors had a gross margin of 50.73% for the quarter that ended in Jun. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Sunstone Hotel Investors Gross Margin % Related Terms
Sunstone Hotel Investors Gross Margin % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the REIT - Hotel & Motel subindustry, Sunstone Hotel Investors's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Sunstone Hotel Investors Gross Margin % vs REITs Industry
For the REITs industry and Real Estate sector, Sunstone Hotel Investors's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Sunstone Hotel Investors's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Sunstone Hotel Investors (SHO) has a Gross Margin % of 50.73% as of Jun. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Sunstone Hotel Investors and its competitors. This is near median its historical median of 48.72. Over the past decade, Sunstone Hotel Investors' Gross Margin % has ranged from 6.05 to 53.01. According to the industry distribution chart, Sunstone Hotel Investors ranks #574 out of 666 companies in the REITs industry, placing it in the top 86.2%.
Is Sunstone Hotel Investors' Gross Margin % too high?
Sunstone Hotel Investors' current Gross Margin % of 50.73% is near median its 10-year median of 48.72. Over the past 10 years, this metric has ranged from a low of 6.05 to a high of 53.01. The REITs industry median Gross Margin % is 69.48. Sunstone Hotel Investors' value of 50.73% is 27% below this industry median. Based on the distribution chart, Sunstone Hotel Investors ranks #574 out of 666 companies in the REITs industry, which is in the bottom quartile relative to peers. Overall, Sunstone Hotel Investors has a GF Score™ of 77/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Sunstone Hotel Investors' Gross Margin % compare to PEB and XHR?
According to the REITs industry distribution chart, Sunstone Hotel Investors ranks #574 out of 666 companies for Gross Margin %. This places Sunstone Hotel Investors in the lower half of its industry. The industry median Gross Margin % is 69.48. Sunstone Hotel Investors' value of 50.73% is 27% below this benchmark. Historically, Sunstone Hotel Investors' own Gross Margin % has ranged from 6.05 to 53.01 over the past decade. While the company's 10-year median is 48.72 vs. the industry median of 69.48, Sunstone Hotel Investors has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a REITs company?
The median Gross Margin % among REITs companies is 69.48, based on 666 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Sunstone Hotel Investors's current Gross Margin % of 50.73% is 27% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Sunstone Hotel Investors and its competitors. For the REITs industry, the median Gross Margin % is 69.48 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sunstone Hotel Investors's current Gross Margin % is 50.73%, which is near median its own 10-year median of 48.72. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sunstone Hotel Investors stock overvalued right now?
Based on GuruFocus' analysis, Sunstone Hotel Investors (SHO) is currently considered Fairly Valued. The stock's GF Value™ is $11.15, compared to a current price of $10.91 — trading 2.2% below its estimated fair value. The current Gross Margin % is 50.73%, which is near median its 10-year median of 48.72 and 27% below the REITs industry median of 69.48. Sunstone Hotel Investors' overall GF Score™ is 77/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Sunstone Hotel Investors (SHO), the current Gross Margin % is 50.73% as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Sunstone Hotel Investors (SHO) Overvalued in 2026?
Based on GuruFocus' analysis, Sunstone Hotel Investors stock appears to be undervalued.
The current stock price of $10.91 is trading 2.2% below its estimated GF Value™ of $11.15.
GuruFocus considers Sunstone Hotel Investors to be Fairly Valued.
Key valuation signals for SHO:
Gross Margin %: 50.73% (near median its 10-year median of 48.72)
GF Value™: $11.15 vs. price of $10.91 (2.2% below fair value)
Industry Position: 27% below the REITs median (#574 of 666)
No single metric tells the full story. See the SHO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sunstone Hotel Investors Inc is a real estate investment trust that acquires, owns, manages, and renovates the full-service hotel and select-service hotel properties across various states in the United States. Its firm's portfolio consists upper upscale and luxury hotels located in convention, resort destination and urban markets. Its majority of the hotels operate under a brand owned by Marriott, Hilton, Hyatt, Four Seasons or Montage. It operates geographically in California which generates the majority of its revenue; Florida; and Hawaii. The company's sole source of income is hotel revenue from its Hotel Ownership Segment.
77GF Score
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