SHO - Sunstone Hotel gets double downgrade at Barclays as growth thesis falters

Barclays analyst Anthony Powell downgraded Sunstone Hotel Investors (NYSE:SHO) to Underweight from Overweight as the analyst's thesis that the hotel REIT would achieve better external growth than its peers isn't playing out. Sunstone (SHO) is sliding 5.1% in midday trading on Tuesday, as hotel REIT stocks exhibit weakness overall. Services Properties Trust (NASDAQ:SVC) falls 5.6%, Host Hotels (NASDAQ:HST) -4.6%, Chatham Lodging (NYSE:CLDT) -2.7%. Powell had upgraded the stock in March 2020 as the company reduced leverage going into the pandemic downturn, "and we expected SHO would be in a better position to return to hotel acquisitions than peers once the recovery began," he wrote. Due to a number of factors, including the flexibility given to all hotel REITs by banks, a number of other hotel REITs have been as active or more active than Sunstone (SHO) in acquisitions, Powell said. "SHO has actually been a net seller in terms of number of hotels,

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Sunstone Hotel gets double downgrade at Barclays as growth thesis falters