Sunstone Hotel Investors (SHO) 10-K 2013 FY Annual report

Exhibit 12

Sunstone Hotel Investors, Inc.

Computation of Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividends

(in thousands, except ratio amounts)

	Year Ended		Year Ended			Year Ended			Year Ended			Year Ended
	December 31,		December 31,			December 31,			December 31,			December 31,
	2013		2012			2011			2010			2009
Earnings:
Income (loss) from continuing operations	$	21,591	$	1,147		$	40,846		$	(30,689	)	$	(14,506	)
Continuing operations:
Equity in (earnings) losses of unconsolidated joint ventures	—		—			(21		)	(555		)	27,801
Distributions from unconsolidated joint ventures	—		—			—			900			500
Interest expense and amortization of deferred financing fees	72,239		76,821			74,195			58,931			62,137
Interest portion of rental expense	6,475		6,602			6,125			3,218			3,226
Discontinued operations:
Interest expense and amortization of deferred financing fees	99		6,490			9,337			29,071			37,100
Interest portion of rental expense	—		—			—			133			163
Total earnings	$	100,404	$	91,060		$	130,482		$	61,009		$	116,421
Combined Fixed Charges and Preferred Stock Dividends:
Continuing operations:
Interest expense and amortization of deferred financing fees	$	72,239	$	76,821		$	74,195		$	58,931		$	62,137
Interest portion of rental expense	6,475		6,602			6,125			3,218			3,226
Preferred dividends	19,013		29,748			27,321			20,652			20,749
Discontinued operations:
Interest expense and amortization of deferred financing fees	99		6,490			9,337			29,071			37,100
Interest portion of rental expense	—		—			—			133			163
Total combined fixed charges and preferred stock dividends	$	97,826	$	119,661		$	116,978		$	112,005		$	123,375
Ratio of earnings to combined fixed charges and preferred stock dividends	1.03		—			1.12			—			—
Deficiency of earnings to combined fixed charges and preferred stock dividends	$	—	$	(28,601	)	$	—		$	(50,996	)	$	(6,954	)