Macroeconomic Conditions Impacting Travel Demand: Economic downturns, consumer spending habits, and business travel trends directly influence hotel occupancy rates and average daily room rates, impacting SHO's revenue and profitability.

Fluctuations in Interest Rates and Capital Markets: Rising interest rates increase borrowing costs for debt and can reduce the value of real estate assets, while volatile capital markets may limit access to financing for acquisitions or refinancing existing debt.

Intense Competition from Other Hotels and Lodging Options: SHO's hotels face significant competition from existing hotels, new hotel developments, and alternative lodging options like short-term rentals, which can lead to pricing pressure and decreased market share.