<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE RELATED
BALANCE SHEETS AND STATEMENTS OF OPERATIONS AND IS QUALIFIED IN ITS ENTIRETY BY
REFERENCE TO SUCH ON THE JOINT ANNUAL REPORT ON FORM 10K.
</LEGEND>
<CIK> 0000930600
<NAME> SUNSTONE HOTEL INVESTORS, INC.
<MULTIPLIER> 1
<CURRENCY> U.S. DOLLARS
       
                             
<PERIOD-TYPE>                   9-MOS
<FISCAL-YEAR-END>                          DEC-31-1996
<PERIOD-START>                             JAN-01-1996
<PERIOD-END>                               SEP-30-1996
<EXCHANGE-RATE>                                      1
<CASH>                                       2,022,000
<SECURITIES>                                         0
<RECEIVABLES>                                5,758,000
<ALLOWANCES>                                         0
<INVENTORY>                                          0
<CURRENT-ASSETS>                                     0
<PP&E>                                     119,762,000
<DEPRECIATION>                            (15,461,000)
<TOTAL-ASSETS>                             113,347,000
<CURRENT-LIABILITIES>                                0
<BONDS>                                     20,783,000
<PREFERRED-MANDATORY>                                0
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<COMMON>                                       109,000
<OTHER-SE>                                  79,685,000
<TOTAL-LIABILITY-AND-EQUITY>               113,347,000
<SALES>                                              0
<TOTAL-REVENUES>                            10,548,000
<CGS>                                                0
<TOTAL-COSTS>                                5,350,000
<OTHER-EXPENSES>                                     0
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<INTEREST-EXPENSE>                           1,029,000
<INCOME-PRETAX>                              4,169,000
<INCOME-TAX>                                 4,169,000
<INCOME-CONTINUING>                          4,169,000
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<NET-INCOME>                                 4,169,000
<EPS-PRIMARY>                                     0.59
<EPS-DILUTED>                                        0