Sunstone Hotel Investors (Sunstone Hotel Investors) Gross Margin % : 46.07% (As of Dec. 2023)

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What is Sunstone Hotel Investors Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Sunstone Hotel Investors's Gross Profit for the three months ended in Dec. 2023 was $100.99 Mil. Sunstone Hotel Investors's Revenue for the three months ended in Dec. 2023 was $219.23 Mil. Therefore, Sunstone Hotel Investors's Gross Margin % for the quarter that ended in Dec. 2023 was 46.07%.

The historical rank and industry rank for Sunstone Hotel Investors's Gross Margin % or its related term are showing as below:

SHOpF.PFD' s Gross Margin % Range Over the Past 10 Years
Min: 6.05 Med: 52.27 Max: 53.01
Current: 48.81

During the past 13 years, the highest Gross Margin % of Sunstone Hotel Investors was 53.01%. The lowest was 6.05%. And the median was 52.27%.

SHOpF.PFD's Gross Margin % is ranked worse than
86.33% of 629 companies
in the REITs industry
Industry Median: 68.8 vs SHOpF.PFD: 48.81

Sunstone Hotel Investors had a gross margin of 46.07% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Sunstone Hotel Investors was 3.70% per year.

Sunstone Hotel Investors Gross Margin % Historical Data

The historical data trend for Sunstone Hotel Investors's Gross Margin % can be seen below:

* 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.

* Premium members only.

Sunstone Hotel Investors Gross Margin % Chart

Sunstone Hotel Investors Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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52.40

6.05

40.62

49.08

48.35

Sunstone Hotel Investors Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Gross Margin %	Get a 7-Day Free Trial															50.06	48.26	53.00	47.12	46.07

Competitive Comparison of Sunstone Hotel Investors's Gross Margin %

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's Gross Margin % Distribution in the 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.

Sunstone Hotel Investors Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Sunstone Hotel Investors's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )	=	Gross Profit (A: Dec. 2023 )	/	Revenue (A: Dec. 2023 )
	=	477	/	986.48
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(986.48 - 509.523)	/	986.48
	=	48.35 %

Sunstone Hotel Investors's Gross Margin for the quarter that ended in Dec. 2023 is calculated as

Gross Margin % (Q: Dec. 2023 )	=	Gross Profit (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	101	/	219.225
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(219.225 - 118.239)	/	219.225
	=	46.07 %

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 (NYSE:SHOpF.PFD) 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 46.07% for the quarter that ended in Dec. 2023 => 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

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Sunstone Hotel Investors (Sunstone Hotel Investors) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » REITs » Sunstone Hotel Investors Inc (NYSE:SHOpF.PFD) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

SHO:USA

Address

15 Enterprise, Suite 200, Aliso Viejo, CA, USA, 92656

Website

https://www.sunstonehotels.com

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. The firm's portfolio consists primarily of urban, upper-upscale hotels. The vast majority of these hotels are managed under Marriott, Hilton, Fairmont, and Sheraton brands. Regionally, the company's assets are located in its California, Other West, Midwest, and East geographical segments within the U.S. The majority of the company's revenue is derived from its Eastern operations, closely followed by its Californian operations. Sunstone's sole source of income is hotel revenue from its hotel ownership segment.