FORM 4 Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP OF SECURITIES Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940

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(Print or Type Responses)

1. Name and Address of Reporting Person * ALTER ROBERT A   2. Issuer Name and Ticker or Trading Symbol Sunstone Hotel Investors, Inc. [SHO] 5. Relationship of Reporting Person(s) to Issuer (Check all applicable) __X__ Director _____ 10% Owner __X__ Officer (give title below) _____ Other (specify below) Executive Chairman (Last) (First) (Middle) 903 CALLE AMANECER, SUITE 100 3. Date of Earliest Transaction (Month/Day/Year) 02/05/2010 (Street) SAN CLEMENTE, CA 92673 4. If Amendment, Date Original Filed(Month/Day/Year) 6. Individual or Joint/Group Filing(Check Applicable Line) _X_ Form filed by One Reporting Person ___ Form filed by More than One Reporting Person (City) (State) (Zip) Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned

1.Title of Security (Instr. 3) 2. Transaction Date (Month/Day/Year) 2A. Deemed Execution Date, if any (Month/Day/Year) 3. Transaction Code (Instr. 8) 4. Securities Acquired (A) or Disposed of (D) (Instr. 3, 4 and 5) 5. Amount of Securities Beneficially Owned Following Reported Transaction(s) (Instr. 3 and 4) 6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4) 7. Nature of Indirect Beneficial Ownership (Instr. 4) Code V Amount (A) or (D) Price Common Stock 02/05/2010   F   10,083 D (1) 174,792 D   Common Stock 02/06/2010   F   7,769 D (2) 167,023 D   Common Stock 02/07/2010   F   3,265 D (3) 163,758 D   Common Stock               40,954 I By Robert A. Alter Trust

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Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)

1. Title of Derivative Security (Instr. 3)

2. Conversion or Exercise Price of Derivative Security

3. Transaction Date (Month/Day/Year)

3A. Deemed Execution Date, if any (Month/Day/Year)

4. Transaction Code (Instr. 8)

5. Number of Derivative Securities Acquired (A) or Disposed of (D) (Instr. 3, 4, and 5)

6. Date Exercisable and Expiration Date (Month/Day/Year)

7. Title and Amount of Underlying Securities (Instr. 3 and 4)

8. Price of Derivative Security (Instr. 5)

9. Number of Derivative Securities Beneficially Owned Following Reported Transaction(s) (Instr. 4)

10. Ownership Form of Derivative Security: Direct (D) or Indirect (I) (Instr. 4)

11. Nature of Indirect Beneficial Ownership (Instr. 4)

Code

V

(A)

(D)

Date Exercisable

Expiration Date

Title

Amount or Number of Shares

Reporting Owners

Reporting Owner Name / Address	Relationships
	Director	10% Owner	Officer	Other
ALTER ROBERT A 903 CALLE AMANECER SUITE 100 SAN CLEMENTE, CA 92673	X		Executive Chairman

Signatures

/s/ Robert A. Alter		02/08/2010
**Signature of Reporting Person		Date

Explanation of Responses:

*	If the form is filed by more than one reporting person, see Instruction 4(b)(v).
**	Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
(1)	On February 5, 2010, 31,418 restricted shares of common stock (awarded to the Reporting Person on February 5, 2009) vested, and 10,083 shares of common stock were withheld to satisfy tax withholding obligations. The closing price on February 5, 2010 of common stock of Sunstone Hotel Investors, Inc. on the New York Stock Exchange was $8.31 per share.
(2)	On February 6, 2010, 24,525 restricted shares of common stock (awarded to the Reporting Person on February 6, 2008) vested, and 7,769 shares of common stock were withheld to satisfy tax withholding obligations. The closing price on February 5, 2010 (as February 6, 2010 fell on a weekend) of common stock of Sunstone Hotel Investors, Inc. on the New York Stock Exchange was $8.31 per share.
(3)	On February 7, 2010, 10,308 restricted shares of common stock (awarded to the Reporting Person on February 7, 2007) vested, and 3,265 shares of common stock were withheld to satisfy tax withholding obligations. The closing price on February 5, 2010 (as February 7, 2010 fell on a weekend) of common stock of Sunstone Hotel Investors, Inc. on the New York Stock Exchange was $8.31 per share.

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