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style="font-family:'Times New Roman','Times','serif';font-size:9pt;line-height:1.19;margin:0pt;">Emerging growth company</p></td><td style="vertical-align:top;width:79.46%;margin:0pt;padding:0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:12pt;line-height:1.19;margin:0pt;"><ix:nonNumeric format="ixt-sec:boolballotbox" contextRef="Duration_7_25_2022_To_7_25_2022_pAMWXi6T3UOsTNp_Vq78Ow" name="dei:EntityEmergingGrowthCompany" id="Tc_1I-ZbJAum0CO9EJ4mFPENA_1_1"><span style="font-family:'Segoe UI Symbol';font-size:9pt;">&#9744;</span></ix:nonNumeric></p></td></tr></table><p style="font-family:'Times New Roman','Times','serif';font-size:9pt;line-height:1.19;margin:10pt 0pt 10pt 0pt;">If an emerging growth company, indicate by checkmark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards pursuant to Section 13(a) of the Exchange Act<span style="font-size:10pt;">.</span>&#160; <span style="font-family:'Segoe UI Symbol';">&#9744;</span></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;line-height:1.19;border-bottom:1px solid #000000;margin:0pt;">&#160;&#160;</p><p style="font-family:'Times New Roman','Times','serif';font-size:12pt;line-height:1.37;margin:0pt 0pt 10pt 0pt;"><span style="font-size:10pt;font-weight:bold;visibility:hidden;">&#8203;</span></p></div></div>
<div style="background-color:#000000;clear:both;height:2pt;page-break-after:always;width:82.35%;border:0;margin:30pt 8.82% 30pt 8.82%;"></div><div style="max-width:100%;padding-left:8.82%;padding-right:8.82%;position:relative;"><div style="clear:both;max-width:100%;position:relative;"><p style="font-family:'Times New Roman','Times','serif';font-size:12pt;line-height:1.19;text-indent:24.5pt;margin:0pt;"><span style="line-height:1.37;margin-bottom:10pt;visibility:hidden;">&#8203;</span></p><a id="_425073a7_e49d_4507_b1a1_a3bd58e89503"></a><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;line-height:1.19;margin:0pt;"><span style="display:inline-block;text-indent:0pt;width:72pt;"><b style="font-family:'Times New Roman','Times','serif';font-size:10pt;font-style:normal;font-weight:bold;">Item 1.01.</b></span><b style="font-weight:bold;">Entry Into a Material Definitive Agreement.</b></p><p style="font-family:'Times New Roman','Times','serif';font-size:12pt;line-height:1.19;margin:0pt 0pt 0pt 0.75pt;"><span style="font-size:10pt;line-height:1.37;margin-bottom:10pt;margin-left:0pt;visibility:hidden;">&#8203;</span></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;line-height:1.19;text-indent:24.5pt;margin:0pt;"><span style="white-space:pre-wrap;">On July 25, 2022, Sunstone Hotel Investors, Inc. (the &#8220;Company&#8221;) entered into a Second Amended and Restated Credit Agreement (the &#8220;Amended Credit Agreement&#8221;) among the Company, Sunstone Hotel Partnership, LLC, Wells Fargo Bank, National Association, Bank of America, N.A., JPMorgan Chase Bank, N.A., PNC Bank, National Association, U.S. Bank National Association, Truist Bank, The Huntington National Bank, The Bank of Nova Scotia, Regions Bank and Bank of Hawaii. The Amended Credit Agreement provides for a $500 million unsecured revolving credit facility and two term loan facilities in the aggregate amount of $350 million. Wells Fargo Securities, LLC, BofA Securities, Inc., JPMorgan Chase Bank, N.A., PNC Capital Markets LLC, U.S. Bank National Association, Truist Securities, Inc., and The Huntington National Bank are joint lead arrangers,  Wells Fargo Securities, LLC, BofA Securities, Inc., and JPMorgan Chase Bank, N.A. are joint bookrunners, Bank of America, N.A. and JPMorgan Chase Bank, N.A. are syndications agents, PNC Bank, National Association, U.S. Bank National Association, Truist Bank, and The Huntington National Bank are documentation agents, and J.P. Morgan Securities LLC is sustainability agent of the Amended Credit Agreement.  The Company&#8217;s operating partnership, Sunstone Hotel Partnership, LLC, is the borrower under the Amended Credit Agreement and certain of the Company&#8217;s subsidiaries guarantee its obligations under the Amended Credit Agreement. </span></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;line-height:1.19;text-indent:24.5pt;margin:9pt 0pt 0pt 0pt;">The revolving credit facility under the Amended Credit Agreement matures on July 25, 2026. The Company may extend the maturity date of the revolving credit facility under the Amended Credit Agreement, exercisable two times, by six (6) months for each extension, to July 25, 2027, upon the payment of applicable fees and satisfaction of certain customary conditions. The Company also has the right to increase the revolving portion of the Amended Credit Agreement, or to add term loans, in an amount up to $250 million, for an aggregate facility of $1.1 billion, in the case of each such increase, from lenders that are willing at such time to provide such increase or such term loans.</p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;line-height:1.19;text-align:justify;text-indent:24.5pt;margin:9pt 0pt 9pt 0pt;">As part of the Amended Credit Agreement, the Company increased the aggregate amount of its two unsecured term loans from $108 million to $350 million. The two term loan facilities each have a balance of $175 million and mature in July 2027 and January 2028. </p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;line-height:1.19;text-indent:24.5pt;margin:0pt 0pt 9pt 0pt;">Interest is paid on the periodic advances on the revolving facility and amounts outstanding on the term loans at varying rates, based upon adjusted SOFR as defined in the Amended Credit Agreement plus an applicable margin. The applicable margin is based upon the Company&#8217;s ratio of net indebtedness to EBITDA, as follows: </p><table style="border-collapse:collapse;font-size:16pt;height:max-content;margin-left:auto;margin-right:auto;width:95.23%;"><tr style="height:1pt;"><td style="vertical-align:top;width:6.88%;margin:0pt;padding:0pt 5.4pt 0pt 5.4pt;"><div style="height:1pt;overflow:hidden;overflow-wrap:break-word;position:relative;"><div style="position:absolute;top:0pt;width:100%;"><p style="font-family:'Times New Roman','Times','serif';font-size:12pt;line-height:1.19;margin:0pt;"><span style="font-size:1pt;line-height:1.37;margin-bottom:10pt;visibility:hidden;">&#8203;</span></p></div></div></td><td style="vertical-align:top;width:24.37%;margin:0pt;padding:0pt 5.4pt 0pt 5.4pt;"><div style="height:1pt;overflow:hidden;overflow-wrap:break-word;position:relative;"><div style="position:absolute;top:0pt;width:100%;"><p style="font-family:'Times New Roman','Times','serif';font-size:12pt;line-height:1.19;text-align:center;margin:0pt;"><span style="font-size:9pt;line-height:1.37;margin-bottom:10pt;visibility:hidden;">&#8203;</span></p><p style="font-family:'Times New Roman','Times','serif';font-size:12pt;line-height:1.19;margin:0pt;"><span style="font-size:1pt;line-height:1.37;margin-bottom:10pt;visibility:hidden;">&#8203;</span></p></div></div></td><td style="vertical-align:top;width:17.82%;margin:0pt;padding:0pt 5.4pt 0pt 5.4pt;"><div style="height:1pt;overflow:hidden;overflow-wrap:break-word;position:relative;"><div style="position:absolute;top:0pt;width:100%;"></div></div></td><td style="vertical-align:top;width:17.82%;margin:0pt;padding:0pt 5.4pt 0pt 5.4pt;"><div style="height:1pt;overflow:hidden;overflow-wrap:break-word;position:relative;"><div style="position:absolute;top:0pt;width:100%;"><p style="font-family:'Times New Roman','Times','serif';font-size:12pt;line-height:1.19;text-align:center;margin:0pt;"><span style="font-size:9pt;font-weight:bold;letter-spacing:-0.1pt;line-height:1.37;margin-bottom:10pt;visibility:hidden;">&#8203;</span></p><p style="font-family:'Times New Roman','Times','serif';font-size:12pt;line-height:1.19;margin:0pt;"><span style="font-size:1pt;line-height:1.37;margin-bottom:10pt;visibility:hidden;">&#8203;</span></p></div></div></td><td style="vertical-align:top;width:16.87%;margin:0pt;padding:0pt 5.4pt 0pt 5.4pt;"><div style="height:1pt;overflow:hidden;overflow-wrap:break-word;position:relative;"><div style="position:absolute;top:0pt;width:100%;"><p style="font-family:'Times New Roman','Times','serif';font-size:12pt;line-height:1.19;text-align:center;margin:0pt;"><span style="font-size:9pt;font-weight:bold;letter-spacing:-0.1pt;line-height:1.37;margin-bottom:10pt;visibility:hidden;">&#8203;</span></p><p style="font-family:'Times New Roman','Times','serif';font-size:12pt;line-height:1.19;margin:0pt;"><span style="font-size:1pt;line-height:1.37;margin-bottom:10pt;visibility:hidden;">&#8203;</span></p></div></div></td><td style="vertical-align:top;width:16.21%;margin:0pt;padding:0pt 5.4pt 0pt 5.4pt;"><div style="height:1pt;overflow:hidden;overflow-wrap:break-word;position:relative;"><div style="position:absolute;top:0pt;width:100%;"><p style="font-family:'Times New Roman','Times','serif';font-size:12pt;line-height:1.19;text-align:center;margin:0pt;"><span style="font-size:9pt;font-weight:bold;letter-spacing:-0.1pt;line-height:1.37;margin-bottom:10pt;visibility:hidden;">&#8203;</span></p><p style="font-family:'Times New Roman','Times','serif';font-size:12pt;line-height:1.19;margin:0pt;"><span style="font-size:1pt;line-height:1.37;margin-bottom:10pt;visibility:hidden;">&#8203;</span></p></div></div></td></tr><tr><td style="vertical-align:top;width:6.88%;border-bottom:1.5pt solid #000000;border-left:1.5pt solid #000000;border-right:1px solid #000000;border-top:1.5pt solid #000000;margin:0pt;padding:0pt 5.02pt 0pt 4.65pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:12pt;line-height:1.19;text-align:justify;margin:0pt;"><span style="font-size:9pt;font-weight:bold;line-height:1.37;margin-bottom:10pt;visibility:hidden;">&#8203;</span></p><p style="font-family:'Times New Roman','Times','serif';font-size:9pt;line-height:1.19;text-align:justify;margin:0pt;"><b style="font-weight:bold;">Level</b></p></td><td style="vertical-align:top;width:24.37%;border-bottom:1.5pt solid #000000;border-left:1px solid #000000;border-right:1px solid #000000;border-top:1.5pt solid #000000;margin:0pt;padding:0pt 5.02pt 0pt 5.02pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:12pt;line-height:1.19;text-align:center;margin:0pt;"><span style="font-size:9pt;font-weight:bold;line-height:1.37;margin-bottom:10pt;visibility:hidden;">&#8203;</span></p><p style="font-family:'Times New Roman','Times','serif';font-size:9pt;line-height:1.19;text-align:center;margin:0pt;"><b style="font-weight:bold;">Leverage Ratio</b></p></td><td style="vertical-align:top;width:17.82%;border-bottom:1.5pt solid #000000;border-left:1px solid #000000;border-right:1px solid #000000;border-top:1.5pt solid #000000;margin:0pt;padding:0pt 5.02pt 0pt 5.02pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:9pt;line-height:1.19;text-align:center;margin:0pt;"><b style="font-weight:bold;letter-spacing:-0.1pt;">Applicable Margin for Revolving Loans that are SOFR Loans</b></p></td><td style="vertical-align:top;width:17.82%;border-bottom:1.5pt solid #000000;border-left:1px solid #000000;border-right:1px solid #000000;border-top:1.5pt solid #000000;margin:0pt;padding:0pt 5.02pt 0pt 5.02pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:9pt;line-height:1.19;text-align:center;margin:0pt;"><b style="font-weight:bold;letter-spacing:-0.1pt;">Applicable Margin for Revolving Loans that are </b><b style="font-weight:bold;letter-spacing:-0.1pt;"><br /></b><b style="font-weight:bold;letter-spacing:-0.1pt;">Base Rate Loans</b></p></td><td style="vertical-align:top;width:16.87%;border-bottom:1.5pt solid #000000;border-left:1px solid #000000;border-right:1px solid #000000;border-top:1.5pt solid #000000;margin:0pt;padding:0pt 5.02pt 0pt 5.02pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:9pt;line-height:1.19;text-align:center;margin:0pt;"><b style="font-weight:bold;letter-spacing:-0.1pt;">Applicable Margin for Term Loans that are </b><b style="font-weight:bold;letter-spacing:-0.1pt;"><br /></b><b style="font-weight:bold;letter-spacing:-0.1pt;">SOFR Loans</b></p></td><td style="vertical-align:top;width:16.21%;border-bottom:1.5pt solid #000000;border-left:1px solid #000000;border-right:1px solid #000000;border-top:1.5pt solid #000000;margin:0pt;padding:0pt 5.02pt 0pt 5.02pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:9pt;line-height:1.19;text-align:center;margin:0pt;"><b style="font-weight:bold;letter-spacing:-0.1pt;">Applicable Margin for Term Loans that are </b><b style="font-weight:bold;letter-spacing:-0.1pt;"><br /></b><b style="font-weight:bold;letter-spacing:-0.1pt;">Base Rate Loans</b></p></td></tr><tr><td style="vertical-align:top;width:6.88%;background:#cceeff;border-left:1.5pt solid #000000;border-right:1px solid #000000;margin:0pt;padding:0pt 5.02pt 0pt 4.65pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:9pt;line-height:1.19;padding-left:9.35pt;text-align:center;text-indent:-9.35pt;margin:0pt;">1</p></td><td style="vertical-align:top;width:24.37%;background:#cceeff;border-left:1px solid #000000;border-right:1px solid #000000;margin:0pt;padding:0pt 5.02pt 0pt 5.02pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:9pt;line-height:1.19;text-align:center;margin:0pt;">Less than <br />3.00 to 1.00</p></td><td style="vertical-align:top;width:17.82%;background:#cceeff;border-left:1px solid #000000;border-right:1px solid #000000;margin:0pt;padding:0pt 5.02pt 0pt 5.02pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:9pt;line-height:1.19;text-align:center;margin:0pt;"><span style="letter-spacing:-0.1pt;">1.40%</span></p></td><td style="vertical-align:top;width:17.82%;background:#cceeff;border-left:1px solid #000000;border-right:1px solid #000000;margin:0pt;padding:0pt 5.02pt 0pt 5.02pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:9pt;line-height:1.19;text-align:center;margin:0pt;"><span style="letter-spacing:-0.1pt;">0.40%</span></p></td><td style="vertical-align:top;width:16.87%;background:#cceeff;border-left:1px solid #000000;border-right:1px solid #000000;margin:0pt;padding:0pt 5.02pt 0pt 5.02pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:9pt;line-height:1.19;text-align:center;margin:0pt;"><span style="letter-spacing:-0.1pt;">1.35%</span></p></td><td style="vertical-align:top;width:16.21%;background:#cceeff;border-left:1px solid #000000;border-right:1px solid #000000;margin:0pt;padding:0pt 5.02pt 0pt 5.02pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:9pt;line-height:1.19;text-align:center;margin:0pt;"><span style="letter-spacing:-0.1pt;">0.35%</span></p></td></tr><tr><td style="vertical-align:top;width:6.88%;border-left:1.5pt solid #000000;border-right:1px solid #000000;border-top:1px solid #000000;margin:0pt;padding:0pt 5.02pt 0pt 4.65pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:9pt;line-height:1.19;padding-left:9.35pt;text-align:center;text-indent:-9.35pt;margin:0pt;">2</p></td><td style="vertical-align:top;width:24.37%;border-left:1px solid #000000;border-right:1px solid #000000;border-top:1px solid #000000;margin:0pt;padding:0pt 5.02pt 0pt 5.02pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:9pt;line-height:1.19;text-align:center;margin:0pt;">Greater than or equal to <br />3.00 to 1.00 <br />but less than <br />3.50 to 1.00</p></td><td style="vertical-align:top;width:17.82%;border-left:1px solid #000000;border-right:1px solid #000000;border-top:1px solid #000000;margin:0pt;padding:0pt 5.02pt 0pt 5.02pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:9pt;line-height:1.19;text-align:center;margin:0pt;"><span style="letter-spacing:-0.1pt;">1.45%</span></p></td><td style="vertical-align:top;width:17.82%;border-left:1px solid #000000;border-right:1px solid #000000;border-top:1px solid #000000;margin:0pt;padding:0pt 5.02pt 0pt 5.02pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:9pt;line-height:1.19;text-align:center;margin:0pt;"><span style="letter-spacing:-0.1pt;">0.45%</span></p></td><td style="vertical-align:top;width:16.87%;border-left:1px solid #000000;border-right:1px solid #000000;border-top:1px solid #000000;margin:0pt;padding:0pt 5.02pt 0pt 5.02pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:9pt;line-height:1.19;text-align:center;margin:0pt;"><span style="letter-spacing:-0.1pt;">1.40%</span></p></td><td style="vertical-align:top;width:16.21%;border-left:1px solid #000000;border-right:1px solid #000000;border-top:1px solid #000000;margin:0pt;padding:0pt 5.02pt 0pt 5.02pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:9pt;line-height:1.19;text-align:center;margin:0pt;"><span style="letter-spacing:-0.1pt;">0.40%</span></p></td></tr><tr><td style="vertical-align:top;width:6.88%;background:#cceeff;border-left:1.5pt solid #000000;border-right:1px solid #000000;border-top:1px solid #000000;margin:0pt;padding:0pt 5.02pt 0pt 4.65pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:9pt;line-height:1.19;padding-left:9.35pt;text-align:center;text-indent:-9.35pt;margin:0pt;">3</p></td><td style="vertical-align:top;width:24.37%;background:#cceeff;border-left:1px solid #000000;border-right:1px solid #000000;border-top:1px solid #000000;margin:0pt;padding:0pt 5.02pt 0pt 5.02pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:9pt;line-height:1.19;text-align:center;margin:0pt;">Greater than or equal to <br />3.50 to 1.00 <br />but less than <br />4.00 to 1.00</p></td><td style="vertical-align:top;width:17.82%;background:#cceeff;border-left:1px solid #000000;border-right:1px solid #000000;border-top:1px solid #000000;margin:0pt;padding:0pt 5.02pt 0pt 5.02pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:9pt;line-height:1.19;text-align:center;margin:0pt;"><span style="letter-spacing:-0.1pt;">1.50%</span></p></td><td style="vertical-align:top;width:17.82%;background:#cceeff;border-left:1px solid #000000;border-right:1px solid #000000;border-top:1px solid #000000;margin:0pt;padding:0pt 5.02pt 0pt 5.02pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:9pt;line-height:1.19;text-align:center;margin:0pt;"><span style="letter-spacing:-0.1pt;">0.50%</span></p></td><td style="vertical-align:top;width:16.87%;background:#cceeff;border-left:1px solid #000000;border-right:1px solid #000000;border-top:1px solid #000000;margin:0pt;padding:0pt 5.02pt 0pt 5.02pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:9pt;line-height:1.19;text-align:center;margin:0pt;"><span style="letter-spacing:-0.1pt;">1.45%</span></p></td><td style="vertical-align:top;width:16.21%;background:#cceeff;border-left:1px solid #000000;border-right:1px solid #000000;border-top:1px solid #000000;margin:0pt;padding:0pt 5.02pt 0pt 5.02pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:9pt;line-height:1.19;text-align:center;margin:0pt;"><span style="letter-spacing:-0.1pt;">0.45%</span></p></td></tr><tr><td style="vertical-align:top;width:6.88%;border-left:1.5pt solid #000000;border-right:1px solid #000000;border-top:1px solid #000000;margin:0pt;padding:0pt 5.02pt 0pt 4.65pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:9pt;line-height:1.19;padding-left:9.35pt;text-align:center;text-indent:-9.35pt;margin:0pt;">4</p></td><td style="vertical-align:top;width:24.37%;border-left:1px solid #000000;border-right:1px solid #000000;border-top:1px solid #000000;margin:0pt;padding:0pt 5.02pt 0pt 5.02pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:9pt;line-height:1.19;text-align:center;margin:0pt;">Greater than or equal to <br />4.00 to 1.00 <br />but less than <br />5.00 to 1.00</p></td><td style="vertical-align:top;width:17.82%;border-left:1px solid #000000;border-right:1px solid #000000;border-top:1px solid #000000;margin:0pt;padding:0pt 5.02pt 0pt 5.02pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:9pt;line-height:1.19;text-align:center;margin:0pt;"><span style="letter-spacing:-0.1pt;">1.60%</span></p></td><td style="vertical-align:top;width:17.82%;border-left:1px solid #000000;border-right:1px solid #000000;border-top:1px solid #000000;margin:0pt;padding:0pt 5.02pt 0pt 5.02pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:9pt;line-height:1.19;text-align:center;margin:0pt;"><span style="letter-spacing:-0.1pt;">0.60%</span></p></td><td style="vertical-align:top;width:16.87%;border-left:1px solid #000000;border-right:1px solid #000000;border-top:1px solid #000000;margin:0pt;padding:0pt 5.02pt 0pt 5.02pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:9pt;line-height:1.19;text-align:center;margin:0pt;"><span style="letter-spacing:-0.1pt;">1.55%</span></p></td><td style="vertical-align:top;width:16.21%;border-left:1px solid #000000;border-right:1px solid #000000;border-top:1px solid #000000;margin:0pt;padding:0pt 5.02pt 0pt 5.02pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:9pt;line-height:1.19;text-align:center;margin:0pt;"><span style="letter-spacing:-0.1pt;">0.55%</span></p></td></tr><tr style="height:22.65pt;"><td style="vertical-align:top;width:6.88%;background:#cceeff;border-bottom:1px solid #000000;border-left:1.5pt solid #000000;border-right:1px solid #000000;border-top:1px solid #000000;margin:0pt;padding:0pt 5.02pt 0pt 4.65pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:9pt;line-height:1.19;padding-left:9.35pt;text-align:center;text-indent:-9.35pt;margin:0pt;">5</p></td><td style="vertical-align:top;width:24.37%;background:#cceeff;border-bottom:1px solid #000000;border-left:1px solid #000000;border-right:1px solid #000000;border-top:1px solid #000000;margin:0pt;padding:0pt 5.02pt 0pt 5.02pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:9pt;line-height:1.19;text-align:center;margin:0pt;">Greater than or equal to <br />5.00 to 1.00<br />but less than<br />5.50 to 1.00</p></td><td style="vertical-align:top;width:17.82%;background:#cceeff;border-bottom:1px solid #000000;border-left:1px solid #000000;border-right:1px solid #000000;border-top:1px solid #000000;margin:0pt;padding:0pt 5.02pt 0pt 5.02pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:9pt;line-height:1.19;text-align:center;margin:0pt;"><span style="letter-spacing:-0.1pt;">1.80%</span></p></td><td style="vertical-align:top;width:17.82%;background:#cceeff;border-bottom:1px solid #000000;border-left:1px solid #000000;border-right:1px solid #000000;border-top:1px solid #000000;margin:0pt;padding:0pt 5.02pt 0pt 5.02pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:9pt;line-height:1.19;text-align:center;margin:0pt;"><span style="letter-spacing:-0.1pt;">0.80%</span></p></td><td style="vertical-align:top;width:16.87%;background:#cceeff;border-bottom:1px solid #000000;border-left:1px solid #000000;border-right:1px solid #000000;border-top:1px solid #000000;margin:0pt;padding:0pt 5.02pt 0pt 5.02pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:9pt;line-height:1.19;text-align:center;margin:0pt;"><span style="letter-spacing:-0.1pt;">1.75%</span></p></td><td style="vertical-align:top;width:16.21%;background:#cceeff;border-bottom:1px solid #000000;border-left:1px solid #000000;border-right:1px solid #000000;border-top:1px solid #000000;margin:0pt;padding:0pt 5.02pt 0pt 5.02pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:9pt;line-height:1.19;text-align:center;margin:0pt;"><span style="letter-spacing:-0.1pt;">0.75%</span></p></td></tr><tr style="height:22.65pt;"><td style="vertical-align:top;width:6.88%;border-bottom:1px solid #000000;border-left:1.5pt solid #000000;border-right:1px solid #000000;border-top:1px solid #000000;margin:0pt;padding:0pt 5.02pt 0pt 4.65pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:9pt;line-height:1.19;padding-left:9.35pt;text-align:center;text-indent:-9.35pt;margin:0pt;">6</p></td><td style="vertical-align:top;width:24.37%;border-bottom:1px solid #000000;border-left:1px solid #000000;border-right:1px solid #000000;border-top:1px solid #000000;margin:0pt;padding:0pt 5.02pt 0pt 5.02pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:9pt;line-height:1.19;text-align:center;margin:0pt;">Greater than or equal to <br />5.50 to 1.00<br />but less than<br />6.00 to 1.00</p></td><td style="vertical-align:top;width:17.82%;border-bottom:1px solid #000000;border-left:1px solid #000000;border-right:1px solid #000000;border-top:1px solid #000000;margin:0pt;padding:0pt 5.02pt 0pt 5.02pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:9pt;line-height:1.19;text-align:center;margin:0pt;"><span style="letter-spacing:-0.1pt;">1.95%</span></p></td><td style="vertical-align:top;width:17.82%;border-bottom:1px solid #000000;border-left:1px solid #000000;border-right:1px solid #000000;border-top:1px solid #000000;margin:0pt;padding:0pt 5.02pt 0pt 5.02pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:9pt;line-height:1.19;text-align:center;margin:0pt;"><span style="letter-spacing:-0.1pt;">0.95%</span></p></td><td style="vertical-align:top;width:16.87%;border-bottom:1px solid #000000;border-left:1px solid #000000;border-right:1px solid #000000;border-top:1px solid #000000;margin:0pt;padding:0pt 5.02pt 0pt 5.02pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:9pt;line-height:1.19;text-align:center;margin:0pt;"><span style="letter-spacing:-0.1pt;">1.85%</span></p></td><td style="vertical-align:top;width:16.21%;border-bottom:1px solid #000000;border-left:1px solid #000000;border-right:1px solid #000000;border-top:1px solid #000000;margin:0pt;padding:0pt 5.02pt 0pt 5.02pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:9pt;line-height:1.19;text-align:center;margin:0pt;"><span style="letter-spacing:-0.1pt;">0.85%</span></p></td></tr><tr style="height:22.65pt;"><td style="vertical-align:top;width:6.88%;background:#cceeff;border-bottom:1px solid #000000;border-left:1.5pt solid #000000;border-right:1px solid #000000;border-top:1px solid #000000;margin:0pt;padding:0pt 5.02pt 0pt 4.65pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:9pt;line-height:1.19;padding-left:9.35pt;text-align:center;text-indent:-9.35pt;margin:0pt;">7</p></td><td style="vertical-align:top;width:24.37%;background:#cceeff;border-bottom:1px solid #000000;border-left:1px solid #000000;border-right:1px solid #000000;border-top:1px solid #000000;margin:0pt;padding:0pt 5.02pt 0pt 5.02pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:9pt;line-height:1.19;text-align:center;margin:0pt;">Greater than or equal to<br /> 6.00 to 1.00</p></td><td style="vertical-align:top;width:17.82%;background:#cceeff;border-bottom:1px solid #000000;border-left:1px solid #000000;border-right:1px solid #000000;border-top:1px solid #000000;margin:0pt;padding:0pt 5.02pt 0pt 5.02pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:9pt;line-height:1.19;text-align:center;margin:0pt;"><span style="letter-spacing:-0.1pt;">2.25%</span></p></td><td style="vertical-align:top;width:17.82%;background:#cceeff;border-bottom:1px solid #000000;border-left:1px solid #000000;border-right:1px solid #000000;border-top:1px solid #000000;margin:0pt;padding:0pt 5.02pt 0pt 5.02pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:9pt;line-height:1.19;text-align:center;margin:0pt;"><span style="letter-spacing:-0.1pt;">1.25%</span></p></td><td style="vertical-align:top;width:16.87%;background:#cceeff;border-bottom:1px solid #000000;border-left:1px solid #000000;border-right:1px solid #000000;border-top:1px solid #000000;margin:0pt;padding:0pt 5.02pt 0pt 5.02pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:9pt;line-height:1.19;text-align:center;margin:0pt;"><span style="letter-spacing:-0.1pt;">2.20%</span></p></td><td style="vertical-align:top;width:16.21%;background:#cceeff;border-bottom:1px solid #000000;border-left:1px solid #000000;border-right:1px solid #000000;border-top:1px solid #000000;margin:0pt;padding:0pt 5.02pt 0pt 5.02pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:9pt;line-height:1.19;text-align:center;margin:0pt;"><span style="letter-spacing:-0.1pt;">1.20%</span></p></td></tr></table></div></div>
<div style="background-color:#000000;clear:both;height:2pt;page-break-after:always;width:82.35%;border:0;margin:30pt 8.82% 30pt 8.82%;"></div><div style="max-width:100%;padding-left:8.82%;padding-right:8.82%;position:relative;"><div style="clear:both;max-width:100%;position:relative;"><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;line-height:1.19;text-indent:24.5pt;margin:0pt;">In addition, the Amended Credit Agreement also features a sustainability-linked pricing component whereby the Applicable Margin can be reduced by up to 0.02% if the Borrower meets certain sustainability performance targets. </p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;line-height:1.19;text-indent:24.5pt;margin:9pt 0pt 0pt 0pt;">In addition to the interest payable on amounts outstanding under the Amended Credit Agreement, the Company is required to pay an amount equal to 0.20% of the unused portion of the revolving commitments if the average unused amount of the revolving commitments is less than or equal to 50% and 0.25% if the average unused amount of the revolving commitments is greater than 50%. </p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;line-height:1.19;text-indent:24.5pt;margin:9pt 0pt 9pt 0pt;">The Amended Credit Agreement and Amended Term Loans contains various corporate financial covenants. A summary of certain covenants is as follows: </p><table style="border-collapse:collapse;font-size:16pt;height:max-content;margin-left:auto;margin-right:auto;padding-left:0pt;padding-right:0pt;width:74.05%;"><tr style="height:1pt;"><td style="vertical-align:middle;width:40.77%;margin:0pt;padding:0pt;"><div style="height:1pt;overflow:hidden;overflow-wrap:break-word;position:relative;"><div style="position:absolute;top:50%;transform:translate(0,-50%);width:100%;"></div></div></td><td style="vertical-align:bottom;width:3.8%;margin:0pt;padding:0pt;"><div style="height:1pt;overflow:hidden;overflow-wrap:break-word;position:relative;"><div style="bottom:0pt;position:absolute;width:100%;"></div></div></td><td style="vertical-align:middle;width:36.95%;margin:0pt;padding:0pt;"><div style="height:1pt;overflow:hidden;overflow-wrap:break-word;position:relative;"><div style="position:absolute;top:50%;transform:translate(0,-50%);width:100%;"></div></div></td><td style="vertical-align:bottom;width:3.81%;margin:0pt;padding:0pt;"><div style="height:1pt;overflow:hidden;overflow-wrap:break-word;position:relative;"><div style="bottom:0pt;position:absolute;width:100%;"></div></div></td></tr><tr><td style="vertical-align:bottom;width:40.77%;margin:0pt;padding:0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:7pt;line-height:1.19;margin:0pt 0pt 7.19pt 0pt;"><span style="font-size:12pt;">&#160;</span><span style="font-size:7.5pt;">&#160;</span></p></td><td style="vertical-align:bottom;width:3.8%;margin:0pt;padding:0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:7pt;line-height:1.19;margin:0pt 0pt 7.19pt 0pt;"><span style="font-size:7.5pt;">&#160;&#160;</span></p></td><td colspan="3" style="vertical-align:bottom;width:50.42%;border-bottom:1px solid #000000;margin:0pt;padding:0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:7pt;line-height:1.19;text-align:center;margin:0pt -37.6pt 7.19pt 0pt;"><b style="font-size:7.5pt;font-weight:bold;">Covenant</b></p></td><td style="vertical-align:bottom;width:4.99%;border-bottom:1px solid transparent;margin:0pt;padding:0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:7pt;line-height:1.19;margin:0pt 0pt 7.19pt 0pt;"><span style="font-size:7.5pt;">&#160;</span></p></td></tr><tr><td style="vertical-align:top;width:40.77%;background:#cceeff;margin:0pt;padding:0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;line-height:1.19;margin:0pt 0pt 7.19pt 0pt;">Maximum leverage ratio</p></td><td style="vertical-align:bottom;width:3.8%;background:#cceeff;margin:0pt;padding:0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:7pt;line-height:1.19;margin:0pt 0pt 7.19pt 0pt;"><span style="font-size:7.5pt;">&#160;&#160;</span></p></td><td colspan="3" style="vertical-align:bottom;width:50.42%;background:#cceeff;margin:0pt;padding:0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;line-height:1.19;margin:0pt 0pt 7.19pt 0pt;">6.50:1.00</p></td><td style="vertical-align:bottom;width:4.99%;background:#cceeff;margin:0pt;padding:0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:7pt;line-height:1.19;margin:0pt 0pt 7.19pt 0pt;"><span style="font-size:7.5pt;">&#160;</span></p></td></tr><tr><td style="vertical-align:top;width:40.77%;margin:0pt;padding:0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;line-height:1.19;margin:0pt 0pt 7.19pt 0pt;">Minimum fixed charge coverage ratio</p></td><td style="vertical-align:bottom;width:3.8%;margin:0pt;padding:0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:7pt;line-height:1.19;margin:0pt 0pt 7.19pt 0pt;"><span style="font-size:7.5pt;">&#160;&#160;</span></p></td><td colspan="3" style="vertical-align:bottom;width:50.42%;margin:0pt;padding:0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;line-height:1.19;margin:0pt 0pt 7.19pt 0pt;">1.50:1.00</p></td><td style="vertical-align:bottom;width:4.99%;margin:0pt;padding:0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:7pt;line-height:1.19;margin:0pt 0pt 7.19pt 0pt;"><span style="font-size:7.5pt;">&#160;</span></p></td></tr><tr><td style="vertical-align:top;width:40.77%;background:#cceeff;margin:0pt;padding:0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;line-height:1.19;margin:0pt 0pt 7.19pt 0pt;">Maximum unencumbered leverage ratio</p></td><td style="vertical-align:bottom;width:3.8%;background:#cceeff;margin:0pt;padding:0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:12pt;line-height:1.19;margin:0pt 0pt 7.19pt 0pt;"><span style="font-size:7.5pt;line-height:1.37;margin-bottom:10pt;visibility:hidden;">&#8203;</span></p></td><td colspan="3" style="vertical-align:bottom;width:50.42%;background:#cceeff;margin:0pt;padding:0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;line-height:1.19;margin:0pt 0pt 7.19pt 0pt;">0.60:1.00</p></td><td style="vertical-align:bottom;width:4.99%;background:#cceeff;margin:0pt;padding:0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:12pt;line-height:1.19;margin:0pt 0pt 7.19pt 0pt;"><span style="font-size:7.5pt;line-height:1.37;margin-bottom:10pt;visibility:hidden;">&#8203;</span></p></td></tr><tr><td style="vertical-align:top;width:40.77%;margin:0pt;padding:0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;line-height:1.19;margin:0pt 0pt 7.19pt 0pt;">Minimum unsecured interest expense coverage ratio</p></td><td style="vertical-align:bottom;width:3.8%;margin:0pt;padding:0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:12pt;line-height:1.19;margin:0pt 0pt 7.19pt 0pt;"><span style="font-size:7.5pt;line-height:1.37;margin-bottom:10pt;visibility:hidden;">&#8203;</span></p></td><td colspan="3" style="vertical-align:bottom;width:50.42%;margin:0pt;padding:0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;line-height:1.19;margin:0pt 0pt 7.19pt 0pt;">2.00:1.00</p></td><td style="vertical-align:bottom;width:4.99%;margin:0pt;padding:0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:12pt;line-height:1.19;margin:0pt 0pt 7.19pt 0pt;"><span style="font-size:7.5pt;line-height:1.37;margin-bottom:10pt;visibility:hidden;">&#8203;</span></p></td></tr><tr><td style="vertical-align:top;width:40.77%;background:#cceeff;margin:0pt;padding:0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;line-height:1.19;margin:0pt 0pt 7.19pt 0pt;">Secured Indebtedness</p></td><td style="vertical-align:bottom;width:3.8%;background:#cceeff;margin:0pt;padding:0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:7pt;line-height:1.19;margin:0pt 0pt 7.19pt 0pt;"><span style="font-size:7.5pt;">&#160;&#160;</span></p></td><td colspan="3" style="vertical-align:bottom;width:50.42%;background:#cceeff;margin:0pt;padding:0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;line-height:1.19;margin:0pt 0pt 7.19pt 0pt;">Less than 45% of Total Asset Value </p></td><td style="vertical-align:bottom;width:4.99%;background:#cceeff;margin:0pt;padding:0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:7pt;line-height:1.19;margin:0pt 0pt 7.19pt 0pt;"><span style="font-size:7.5pt;">&#160;</span></p></td></tr></table><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;line-height:1.19;text-indent:24.5pt;margin:9pt 0pt 0pt 0pt;">The Amended Credit Agreement requires the Company to maintain a designated pool of unencumbered borrowing base properties. The unencumbered borrowing base must be a minimum of seven (7) properties with an unencumbered borrowing base asset value, as defined, of not less than $500 million. </p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;line-height:1.19;text-indent:24.5pt;margin:9pt 0pt 0pt 0pt;">The Amended Credit Agreement contains representations, financial and other affirmative and negative covenants, events of default and remedies typical for this type of facility. </p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;line-height:1.19;text-indent:24.5pt;margin:9pt 0pt 0pt 0pt;">The foregoing description of the Amended Credit Agreement and Amended Term Loans is qualified in its entirety by the full terms and conditions of the Amended and Restated Credit Agreement which is filed as Exhibit 10.1 to this Current Report on Form 8-K and incorporated herein by reference. </p><p style="font-family:'Times New Roman','Times','serif';font-size:12pt;line-height:1.19;text-indent:24.5pt;margin:0pt;"><span style="font-size:10pt;line-height:1.37;margin-bottom:10pt;visibility:hidden;">&#8203;</span></p><p style="font-family:'Times New Roman','Times','serif';font-size:12pt;line-height:1.19;text-indent:24.5pt;margin:0pt;"><span style="line-height:1.37;margin-bottom:10pt;visibility:hidden;">&#8203;</span></p><a id="_7b99180a_98ee_4185_a062_d430930ad7ef"></a><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;line-height:1.19;background:#ffffff;margin:0pt;"><span style="display:inline-block;text-indent:0pt;width:72pt;"><b style="font-family:'Times New Roman','Times','serif';font-size:10pt;font-style:normal;font-weight:bold;">Item 2.03</b></span><b style="font-weight:bold;">Creation of a Direct Financial Obligation or an Obligation Under an Off-Balance Sheet Arrangement of a Registrant.</b></p><p style="font-family:'Times New Roman','Times','serif';font-size:12pt;line-height:1.19;background:#ffffff;margin:0pt;"><span style="font-size:10pt;margin-bottom:5pt;margin-top:5pt;visibility:hidden;">&#8203;</span></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;line-height:1.19;text-indent:24.5pt;background:#ffffff;margin:0pt;">The information set forth under Item&#160;1.01 of this Current Report on Form 8-K is hereby incorporated by reference into this Item&#160;2.03.</p><p style="font-family:'Times New Roman','Times','serif';font-size:12pt;line-height:1.19;background:#ffffff;margin:0pt;"><span style="font-size:10pt;margin-bottom:5pt;margin-top:5pt;visibility:hidden;">&#8203;</span></p><p style="font-family:'Times New Roman','Times','serif';font-size:12pt;line-height:1.19;background:#ffffff;margin:0pt;"><span style="font-size:10pt;margin-bottom:5pt;margin-top:5pt;visibility:hidden;">&#8203;</span></p><a id="_27f8a534_446f_49a8_9c54_b3dbae2eec4d"></a><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;line-height:1.19;background:#ffffff;margin:0pt;"><span style="display:inline-block;text-indent:0pt;width:72pt;"><b style="font-family:'Times New Roman','Times','serif';font-size:10pt;font-style:normal;font-weight:bold;">Item 7.01</b></span><b style="font-weight:bold;">Regulation FD Disclosure.</b></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;line-height:1.19;padding-top:10pt;text-indent:24.5pt;margin:0pt;">On July 27, 2022, the Company issued a press release announcing the closing of the Second Amended and Restated Credit Agreement. A copy of that press release is furnished as Exhibit 99.1 to this report. The press release has also been posted in the investor relations section of the Company&#8217;s website at www.sunstonehotels.com.</p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;line-height:1.19;text-indent:24.5pt;margin:9pt 0pt 0pt 0pt;">The information contained in the press release attached as Exhibit 99.1 to this report shall not be deemed &#8220;filed&#8221; for the purposes of Section&#160;18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section. Furthermore, the information contained in the press release attached as Exhibit 99.1 to this report shall not be deemed to be incorporated by reference in the filings of the registrant under the Securities Act of 1933, as amended. </p><p style="font-family:'Times New Roman','Times','serif';font-size:12pt;line-height:1.19;text-indent:24.5pt;background:#ffffff;margin:0pt;"><span style="font-size:10pt;margin-bottom:5pt;margin-top:5pt;visibility:hidden;">&#8203;</span></p><p style="font-family:'Times New Roman','Times','serif';font-size:12pt;line-height:1.37;padding-bottom:10pt;margin:0pt;"><span style="font-size:10pt;font-weight:bold;margin-bottom:10pt;visibility:hidden;">&#8203;</span></p></div></div>
<div style="background-color:#000000;clear:both;height:2pt;page-break-after:always;width:82.35%;border:0;margin:30pt 8.82% 30pt 8.82%;"></div><div style="max-width:100%;padding-left:8.82%;padding-right:8.82%;position:relative;"><div style="clear:both;max-width:100%;position:relative;"><a id="_d54b88c0_59a9_468c_b468_93d29b711e86"></a><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;line-height:1.19;background:#ffffff;margin:0pt;"><span style="display:inline-block;text-indent:0pt;width:72pt;"><b style="font-family:'Times New Roman','Times','serif';font-size:10pt;font-style:normal;font-weight:bold;">Item&#160;9.01</b></span><b style="font-weight:bold;">Financial Statements and Exhibits.</b></p><p style="font-family:'Times New Roman','Times','serif';font-size:12pt;line-height:1.19;background:#ffffff;margin:0pt;"><span style="font-size:10pt;margin-bottom:5pt;margin-top:5pt;visibility:hidden;">&#8203;</span></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;line-height:1.19;background:#ffffff;margin:0pt;">(d) Exhibits</p><table style="border-collapse:collapse;font-size:16pt;height:max-content;padding-left:0pt;padding-right:0pt;width:101.07%;"><tr style="height:1pt;"><td style="vertical-align:top;width:12.34%;margin:0pt;padding:0pt;"><div style="height:1pt;overflow:hidden;overflow-wrap:break-word;position:relative;"><div style="position:absolute;top:0pt;width:100%;"></div></div></td><td style="vertical-align:top;width:2.33%;margin:0pt;padding:0pt;"><div style="height:1pt;overflow:hidden;overflow-wrap:break-word;position:relative;"><div style="position:absolute;top:0pt;width:100%;"></div></div></td><td style="vertical-align:top;width:85.31%;margin:0pt;padding:0pt;"><div style="height:1pt;overflow:hidden;overflow-wrap:break-word;position:relative;"><div style="position:absolute;top:0pt;width:100%;"></div></div></td></tr><tr style="height:1pt;"><td style="vertical-align:top;width:12.34%;margin:0pt;padding:0pt;"></td><td style="vertical-align:top;width:2.33%;margin:0pt;padding:0pt;"></td><td style="vertical-align:top;width:85.31%;margin:0pt;padding:0pt;"></td></tr><tr><td style="vertical-align:top;width:12.34%;border-bottom:1px solid #000000;margin:0pt;padding:0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;line-height:1.19;text-align:center;margin:0pt;"><b style="font-weight:bold;">Exhibit No.</b></p></td><td style="vertical-align:top;width:2.33%;margin:0pt;padding:0pt;"></td><td style="vertical-align:top;width:85.31%;border-bottom:1px solid #000000;margin:0pt;padding:0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;line-height:1.19;text-align:center;margin:0pt;"><b style="font-weight:bold;">Description</b></p></td></tr><tr style="height:12.95pt;"><td style="vertical-align:top;width:12.34%;border-top:1px solid #000000;margin:0pt;padding:0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;line-height:1.19;text-align:center;margin:0pt;">10.1</p></td><td style="vertical-align:top;width:2.33%;margin:0pt;padding:0pt;"></td><td style="vertical-align:top;width:85.31%;border-top:1px solid #000000;margin:0pt;padding:0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:12pt;line-height:1.19;margin:0pt 0pt 6pt 0pt;"><a style="-sec-extract:exhibit;font-family:&quot;'Times New Roman','Times','serif'&quot;;font-size:10pt;" href="sho-20220725xex10d1.htm"><span style="font-family:'Times New Roman','Times','serif';font-style:normal;font-weight:normal;">Second Amended and Restated Credit Agreement, dated July 25, 2022.</span></a></p></td></tr><tr style="height:12.95pt;"><td style="vertical-align:top;width:12.34%;margin:0pt;padding:0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;line-height:1.19;text-align:center;margin:0pt;">99.1</p></td><td style="vertical-align:top;width:2.33%;margin:0pt;padding:0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:12pt;line-height:1.19;margin:0pt 0pt 6pt 0pt;"><span style="font-size:10pt;line-height:1.37;margin-bottom:10pt;visibility:hidden;">&#8203;</span></p></td><td style="vertical-align:top;width:85.31%;margin:0pt;padding:0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:12pt;line-height:1.19;margin:0pt 0pt 6pt 0pt;"><a style="-sec-extract:exhibit;font-family:&quot;'Times New Roman','Times','serif'&quot;;font-size:10pt;" href="sho-20220725xex99d1.htm"><span style="font-family:'Times New Roman','Times','serif';font-style:normal;font-weight:normal;">Press Release, dated July 27, 2022.</span></a></p></td></tr><tr style="height:13.05pt;"><td style="vertical-align:top;width:12.34%;margin:0pt;padding:0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;line-height:1.19;text-align:center;margin:0pt;">104</p></td><td style="vertical-align:top;width:2.33%;margin:0pt;padding:0pt;"></td><td style="vertical-align:top;width:85.31%;margin:0pt;padding:0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;line-height:1.19;margin:0pt;">Cover Page Interactive Data File (embedded within the Inline XBRL document).</p></td></tr></table><p style="font-family:'Times New Roman','Times','serif';font-size:12pt;line-height:1.19;padding-left:10.8pt;text-indent:-10.8pt;margin:0pt;"><span style="font-size:10pt;line-height:1.37;margin-bottom:10pt;visibility:hidden;">&#8203;</span></p><p style="font-family:'Times New Roman','Times','serif';font-size:12pt;line-height:1.19;padding-left:10.8pt;text-indent:-10.8pt;margin:0pt;"><span style="font-size:1pt;line-height:1.37;margin-bottom:10pt;visibility:hidden;">&#8203;</span></p><p style="font-family:'Times New Roman','Times','serif';font-size:12pt;line-height:1.19;margin:0pt;"><span style="font-size:10pt;margin-bottom:5pt;margin-top:5pt;visibility:hidden;">&#8203;</span></p></div></div>
<div style="background-color:#000000;clear:both;height:2pt;page-break-after:always;width:82.35%;border:0;margin:30pt 8.82% 30pt 8.82%;"></div><div style="max-width:100%;padding-left:8.82%;padding-right:8.82%;position:relative;"><div style="clear:both;max-width:100%;position:relative;"><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;line-height:1.19;text-align:center;margin:0pt 0pt 12pt 0pt;"><b style="font-weight:bold;">SIGNATURE</b></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;line-height:1.19;text-indent:24.5pt;margin:0pt 0pt 12pt 0pt;">Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. </p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;line-height:1.19;margin:0pt 0pt 12pt 0pt;">&#160;</p><table style="border-collapse:collapse;font-size:16pt;height:max-content;padding-left:0pt;padding-right:0pt;width:100%;"><tr style="height:1pt;"><td style="vertical-align:middle;width:38.53%;margin:0pt;padding:0pt;"><div style="height:1pt;overflow:hidden;overflow-wrap:break-word;position:relative;"><div style="position:absolute;top:50%;transform:translate(0,-50%);width:100%;"></div></div></td><td style="vertical-align:bottom;width:1.92%;margin:0pt;padding:0pt;"><div style="height:1pt;overflow:hidden;overflow-wrap:break-word;position:relative;"><div style="bottom:0pt;position:absolute;width:100%;"></div></div></td><td style="vertical-align:middle;width:3.81%;margin:0pt;padding:0pt;"><div style="height:1pt;overflow:hidden;overflow-wrap:break-word;position:relative;"><div style="position:absolute;top:50%;transform:translate(0,-50%);width:100%;"></div></div></td><td style="vertical-align:bottom;width:1.9%;margin:0pt;padding:0pt;"><div style="height:1pt;overflow:hidden;overflow-wrap:break-word;position:relative;"><div style="bottom:0pt;position:absolute;width:100%;"></div></div></td><td style="vertical-align:middle;width:53.81%;margin:0pt;padding:0pt;"><div style="height:1pt;overflow:hidden;overflow-wrap:break-word;position:relative;"><div style="position:absolute;top:50%;transform:translate(0,-50%);width:100%;"></div></div></td></tr><tr style="height:1pt;"><td style="vertical-align:middle;width:38.53%;margin:0pt;padding:0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;line-height:1.19;margin:0pt;">&#160;</p></td><td style="vertical-align:bottom;width:1.92%;margin:0pt;padding:0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;line-height:1.19;margin:0pt;">&#160;</p></td><td style="vertical-align:middle;width:3.81%;margin:0pt;padding:0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;line-height:1.19;margin:0pt;">&#160;</p></td><td style="vertical-align:bottom;width:1.9%;margin:0pt;padding:0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;line-height:1.19;margin:0pt;">&#160;</p></td><td style="vertical-align:middle;width:53.81%;margin:0pt;padding:0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;line-height:1.19;margin:0pt;">&#160;</p></td></tr><tr><td style="vertical-align:middle;width:38.53%;margin:0pt;padding:0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;line-height:1.19;margin:0pt;">&#160;</p></td><td style="vertical-align:bottom;width:1.92%;margin:0pt;padding:0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;line-height:1.19;margin:0pt;">&#160;</p></td><td style="vertical-align:middle;width:3.81%;margin:0pt;padding:0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;line-height:1.19;margin:0pt;">&#160;</p></td><td style="vertical-align:bottom;width:1.9%;margin:0pt;padding:0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;line-height:1.19;margin:0pt;">&#160;</p></td><td style="vertical-align:middle;width:53.81%;margin:0pt;padding:0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;line-height:1.19;margin:0pt;">&#160;</p></td></tr><tr><td style="vertical-align:top;width:38.53%;margin:0pt;padding:0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;line-height:1.19;margin:0pt;">&#160;</p></td><td style="vertical-align:bottom;width:1.92%;margin:0pt;padding:0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;line-height:1.19;margin:0pt;"><b style="font-weight:bold;">&#160;</b></p></td><td colspan="3" style="vertical-align:bottom;width:59.54%;margin:0pt;padding:0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;line-height:1.19;margin:0pt;"><b style="font-weight:bold;">Sunstone Hotel Investors, Inc.</b></p></td></tr><tr style="height:12pt;"><td style="vertical-align:middle;width:38.53%;margin:0pt;padding:0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;line-height:1.19;margin:0pt;">&#160;</p></td><td colspan="2" style="vertical-align:middle;width:5.74%;margin:0pt;padding:0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;line-height:1.19;margin:0pt;">&#160;</p></td><td colspan="2" style="vertical-align:middle;width:55.72%;margin:0pt;padding:0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;line-height:1.19;margin:0pt;">&#160;</p></td></tr><tr><td style="vertical-align:top;width:38.53%;margin:0pt;padding:0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;line-height:1.19;margin:0pt;">Date: July 27, 2022</p></td><td style="vertical-align:bottom;width:1.92%;margin:0pt;padding:0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;line-height:1.19;margin:0pt;">&#160;</p></td><td style="vertical-align:bottom;width:3.81%;margin:0pt;padding:0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;line-height:1.19;margin:0pt;">By:</p></td><td style="vertical-align:bottom;width:1.9%;border-bottom:1.0pt solid #000000;margin:0pt;padding:0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;line-height:1.19;margin:0pt;">&#160;</p></td><td style="vertical-align:bottom;width:53.81%;border-bottom:1.0pt solid #000000;margin:0pt;padding:0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;line-height:1.19;text-align:center;margin:0pt;">/s/ Aaron R. Reyes</p></td></tr><tr><td style="vertical-align:top;width:38.53%;margin:0pt;padding:0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;line-height:1.19;margin:0pt;">&#160;</p></td><td style="vertical-align:bottom;width:1.92%;margin:0pt;padding:0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;line-height:1.19;margin:0pt;">&#160;</p></td><td style="vertical-align:bottom;width:3.81%;margin:0pt;padding:0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;line-height:1.19;margin:0pt;">&#160;</p></td><td style="vertical-align:bottom;width:1.9%;margin:0pt;padding:0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;line-height:1.19;margin:0pt;">&#160;</p></td><td style="vertical-align:bottom;width:53.81%;margin:0pt;padding:0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;line-height:1.19;text-align:center;margin:0pt;"><b style="font-weight:bold;">Aaron R. Reyes</b></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;line-height:1.19;text-align:center;margin:0pt;"><b style="font-weight:bold;">Principal Financial Officer and Duly Authorized Officer</b></p></td></tr></table><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;line-height:1.19;margin:0pt 0pt 12pt 0pt;">&#160;</p><a id="_GoBack_0"></a><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;line-height:1.19;margin:0pt 0pt 12pt 0pt;">&#160;</p><p style="font-family:'Times New Roman','Times','serif';font-size:12pt;line-height:1.37;margin:0pt 0pt 10pt 0pt;"><span style="font-size:10pt;visibility:hidden;">&#8203;</span></p></div></div>
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported):
July 25, 2022
Sunstone Hotel Investors, Inc.
(Exact Name of Registrant as Specified in Its Charter)
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Maryland
001-32319
20-1296886
(State or Other Jurisdiction of
Incorporation or Organization)
(Commission File Number)
(I.R.S. Employer
Identification Number)
​
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​
200 Spectrum Center Drive
,
21
st
Floor
Irvine
,
California
​
92618
(Address of Principal Executive Offices)
​
(Zip Code)
(
949
)
330-4000
(Registrant's telephone number including area code)
N/A
(Former Name or Former Address, if Changed Since Last Report)
​
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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☐
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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☐
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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☐
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Securities registered pursuant to Section 12(b) of the Act:
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Title of Each Class
Trading Symbol(s)
Name of Each Exchange on Which Registered
Common Stock, $0.01 par value
SHO
New York Stock Exchange
Series H Cumulative Redeemable Preferred Stock, $0.01 par value
SHO.PRH
New York Stock Exchange
Series I Cumulative Redeemable Preferred Stock, $0.01 par value
SHO.PRI
New York Stock Exchange
​
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
​
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Emerging growth company
☐
If an emerging growth company, indicate by checkmark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards pursuant to Section 13(a) of the Exchange Act
.
☐
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Item 1.01.
Entry Into a Material Definitive Agreement.
​
On July 25, 2022, Sunstone Hotel Investors, Inc. (the "Company") entered into a Second Amended and Restated Credit Agreement (the "Amended Credit Agreement") among the Company, Sunstone Hotel Partnership, LLC, Wells Fargo Bank, National Association, Bank of America, N.A., JPMorgan Chase Bank, N.A., PNC Bank, National Association, U.S. Bank National Association, Truist Bank, The Huntington National Bank, The Bank of Nova Scotia, Regions Bank and Bank of Hawaii. The Amended Credit Agreement provides for a $500 million unsecured revolving credit facility and two term loan facilities in the aggregate amount of $350 million. Wells Fargo Securities, LLC, BofA Securities, Inc., JPMorgan Chase Bank, N.A., PNC Capital Markets LLC, U.S. Bank National Association, Truist Securities, Inc., and The Huntington National Bank are joint lead arrangers,  Wells Fargo Securities, LLC, BofA Securities, Inc., and JPMorgan Chase Bank, N.A. are joint bookrunners, Bank of America, N.A. and JPMorgan Chase Bank, N.A. are syndications agents, PNC Bank, National Association, U.S. Bank National Association, Truist Bank, and The Huntington National Bank are documentation agents, and J.P. Morgan Securities LLC is sustainability agent of the Amended Credit Agreement.  The Company's operating partnership, Sunstone Hotel Partnership, LLC, is the borrower under the Amended Credit Agreement and certain of the Company's subsidiaries guarantee its obligations under the Amended Credit Agreement.
The revolving credit facility under the Amended Credit Agreement matures on July 25, 2026. The Company may extend the maturity date of the revolving credit facility under the Amended Credit Agreement, exercisable two times, by six (6) months for each extension, to July 25, 2027, upon the payment of applicable fees and satisfaction of certain customary conditions. The Company also has the right to increase the revolving portion of the Amended Credit Agreement, or to add term loans, in an amount up to $250 million, for an aggregate facility of $1.1 billion, in the case of each such increase, from lenders that are willing at such time to provide such increase or such term loans.
As part of the Amended Credit Agreement, the Company increased the aggregate amount of its two unsecured term loans from $108 million to $350 million. The two term loan facilities each have a balance of $175 million and mature in July 2027 and January 2028.
Interest is paid on the periodic advances on the revolving facility and amounts outstanding on the term loans at varying rates, based upon adjusted SOFR as defined in the Amended Credit Agreement plus an applicable margin. The applicable margin is based upon the Company's ratio of net indebtedness to EBITDA, as follows:
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Level
​
Leverage Ratio
Applicable Margin for Revolving Loans that are SOFR Loans
Applicable Margin for Revolving Loans that are
Base Rate Loans
Applicable Margin for Term Loans that are
SOFR Loans
Applicable Margin for Term Loans that are
Base Rate Loans
1
Less than
3.00 to 1.00
1.40%
0.40%
1.35%
0.35%
2
Greater than or equal to
3.00 to 1.00
but less than
3.50 to 1.00
1.45%
0.45%
1.40%
0.40%
3
Greater than or equal to
3.50 to 1.00
but less than
4.00 to 1.00
1.50%
0.50%
1.45%
0.45%
4
Greater than or equal to
4.00 to 1.00
but less than
5.00 to 1.00
1.60%
0.60%
1.55%
0.55%
5
Greater than or equal to
5.00 to 1.00
but less than
5.50 to 1.00
1.80%
0.80%
1.75%
0.75%
6
Greater than or equal to
5.50 to 1.00
but less than
6.00 to 1.00
1.95%
0.95%
1.85%
0.85%
7
Greater than or equal to
6.00 to 1.00
2.25%
1.25%
2.20%
1.20%
In addition, the Amended Credit Agreement also features a sustainability-linked pricing component whereby the Applicable Margin can be reduced by up to 0.02% if the Borrower meets certain sustainability performance targets.
In addition to the interest payable on amounts outstanding under the Amended Credit Agreement, the Company is required to pay an amount equal to 0.20% of the unused portion of the revolving commitments if the average unused amount of the revolving commitments is less than or equal to 50% and 0.25% if the average unused amount of the revolving commitments is greater than 50%.
The Amended Credit Agreement and Amended Term Loans contains various corporate financial covenants. A summary of certain covenants is as follows:
Covenant
Maximum leverage ratio
6.50:1.00
Minimum fixed charge coverage ratio
1.50:1.00
Maximum unencumbered leverage ratio
​
0.60:1.00
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Minimum unsecured interest expense coverage ratio
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2.00:1.00
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Secured Indebtedness
Less than 45% of Total Asset Value
The Amended Credit Agreement requires the Company to maintain a designated pool of unencumbered borrowing base properties. The unencumbered borrowing base must be a minimum of seven (7) properties with an unencumbered borrowing base asset value, as defined, of not less than $500 million.
The Amended Credit Agreement contains representations, financial and other affirmative and negative covenants, events of default and remedies typical for this type of facility.
The foregoing description of the Amended Credit Agreement and Amended Term Loans is qualified in its entirety by the full terms and conditions of the Amended and Restated Credit Agreement which is filed as Exhibit 10.1 to this Current Report on Form 8-K and incorporated herein by reference.
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Item 2.03
Creation of a Direct Financial Obligation or an Obligation Under an Off-Balance Sheet Arrangement of a Registrant.
​
The information set forth under Item 1.01 of this Current Report on Form 8-K is hereby incorporated by reference into this Item 2.03.
​
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Item 7.01
Regulation FD Disclosure.
On July 27, 2022, the Company issued a press release announcing the closing of the Second Amended and Restated Credit Agreement. A copy of that press release is furnished as Exhibit 99.1 to this report. The press release has also been posted in the investor relations section of the Company's website at www.sunstonehotels.com.
The information contained in the press release attached as Exhibit 99.1 to this report shall not be deemed "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section. Furthermore, the information contained in the press release attached as Exhibit 99.1 to this report shall not be deemed to be incorporated by reference in the filings of the registrant under the Securities Act of 1933, as amended.
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Item 9.01
Financial Statements and Exhibits.
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(d) Exhibits
Exhibit No.
Description
10.1
Second Amended and Restated Credit Agreement, dated July 25, 2022.
99.1
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Press Release, dated July 27, 2022.
104
Cover Page Interactive Data File (embedded within the Inline XBRL document).
​
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
Sunstone Hotel Investors, Inc.
Date: July 27, 2022
By:
/s/ Aaron R. Reyes
Aaron R. Reyes
Principal Financial Officer and Duly Authorized Officer
​