Sunstone Hotel Investors (SHO) 10-K 2016 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,
	2016		2015		2014		2013		2012
Earnings:
Income from continuing operations	$	140,677	$	339,624	$	83,090	$	21,591	$	1,147
Continuing operations:
Equity in net earnings of unconsolidated joint ventures	—		—		—		—		—
Interest expense and amortization of deferred financing fees	50,283		66,516		72,315		72,239		76,821
Interest portion of rental expense	4,321		5,589		5,984		6,475		6,602
Discontinued operations:
Interest expense and amortization of deferred financing fees	—		—		—		99		6,490
Total earnings	$	195,281	$	411,729	$	161,389	$	100,404	$	91,060
Combined Fixed Charges and Preferred Stock Dividends:
Continuing operations:
Interest expense and amortization of deferred financing fees	$	50,283	$	66,516	$	72,315	$	72,239	$	76,821
Interest portion of rental expense	4,321		5,589		5,984		6,475		6,602
Preferred dividends	15,964		9,200		9,200		19,013		29,748
Discontinued operations:
Interest expense and amortization of deferred financing fees	—		—		—		99		6,490
Total combined fixed charges and preferred stock dividends	$	70,568	$	81,305	$	87,499	$	97,826	$	119,661
Ratio of earnings to combined fixed charges and preferred stock dividends	2.77		5.06		1.84		1.03		—
Deficiency of earnings to combined fixed charges and preferred stock dividends	$	—	$	—	$	—	$	—	$	(28,601)