Sunstone Hotel Investors Inc 's

The hotel business is fiercely competitive. In each of their marketplaces, our hotels compete for visitors with rival hotels. Location, physical qualities, service quality, and reputation are all elements that contribute to competitive advantage. Competition from existing and future hotels operated under brands in the luxury, upper upscale, and upscale sectors is sometimes peculiar to the local locations in which our hotels are located. Increased competition might hurt our occupancy or revenues, or force our operators to raise service or amenity standards, reducing our hotels profitability.
We feel that there is a lot of rivalry for hotel acquisitions. In each of our markets, we compete with institutional pension funds, private equity investors, high net worth individuals, other REITs, and a variety of local, regional, national, and international owners. Some of these organizations may have far more financial resources than we have, and they may be able and willing to take on more risk than we feel we can safely manage. Competition among possible purchasers may raise the negotiating strength of potential sellers during periods when we are looking to buy hotels, reducing the number of viable investment possibilities accessible to us or raising pricing. Similarly, when we are attempting to sell hotels, competition from other vendors may boost the hoteliers negotiating power.