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FORM 5
X Check this box if no __ Form 3 Holdings
longer subject to Reported
Section 16. Form 4
or Form 5 obligations X Form 4 Transactions
may continue. See Reported
Instruction 1(b).
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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
ANNUAL STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP
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(f)
of the Investment Company Act of 1940.
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OMB Approval
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OMB Number: 3235-0362
Expires: September 30, 1998
Estimated average burden
hours per response....1.0
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1. Name and Address of 2. Issuer Name and Ticker or Trading Symbol 6. Relationship of Reporting Person(s) to Issuer
Rerporting Person* (Check all applicable)
Sunstone Hotel Investors, Inc. -- SSI __ Director X 10% Owner(2)
__ Officer (give title below) __ Other (specify below)
Kaplan Jeffrey M.
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(Last) (First) (Middle) 3. IRS or Social 4. Statement for 7. Individual or Joint/Group Reporting
Security Number of Month/Year (check applicable line)
Reporting Person X Form Filed by One Reporting Person
(Voluntary) 12/1998 __ Form Filed by More than One Reporting
Person
599 Lexington Avenue, Suite 3800
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(Street) 5. If Amendment,
Date of Original
(Month/Year)
New York New York 10022
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(City) (State) (Zip) Table I -- Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
<S> <C> <C> <C> <C> <C> <C>
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1. Title of Security 2. Trans- 3. Transaction 4. Securities Acquired (A) 5. Amount of 6. Ownership 7. Nature of
(Instr. 3) action Code (Instr. or Disposed of (D) Securities Form: Indirect
Date 8) (Instr. 3, 4 and 5) Beneficially Direct (D) Beneficial
(Month/ Owned at End or Indirect Ownership
Day/ of Issuer's (I) (Instr. 4)
Year) Fiscal Year (Instr. 4)
(Instr. 3
and 4)
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Amount (A) or (D) Price
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Common Stock 10/98 J4(2) 1,500 A (2) 2,285,762 I(2)(3) (1)(2)(3)
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Common Stock 2/1/99 J(4) 2,285,762 D (4) 0 I(3)(4) (1)(3)(4)
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* If the form is filed by more than one reporting person, See Instruction 4(b)(v).
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<TABLE>
<CAPTION>
FORM 5 (continued) Table II -- Derivative Securities Acquired, Disposed of, or Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
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1. Title 2. Conver- 3. Trans- 4. Trans- 5. Number of 6. Date 7. Title 8. Price 9. Number 10. Owner- 11. Nature of
of sion or action action Derivative Exer- and of of ship Indirect
Deri- Exercise Date Code Securities cisable Amount Deri- Deri- Form Beneficial
vative Price of (Instr. Acquired (A) and Expi- of vative vative of Deri- Ownership
Secu- Deri- (Month/ 8) or Disposed ration Under- Secu- Secu- vative (Instr. 4)
rity vative Day/ of (D) Date Lying rity rities Security:
(Instr. Security Year) (Instr. 3, (Month/ Securi- (Instr. Benefi- Direct
3) 4, and 5) Day/ ties 5) cially (D) or
Year) (Instr. Owned Indirect
3 and 4) at End (I)
of (Instr.
Year 4)
(Instr.
4)
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(A) (D) Date Expir- Title Amount
Exerci- ation or
sable Date Number
of
Shares
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7.9% Class A 2/1/99 J(4) 250,000 Common (4) 0 I(3)(4) (1)(3)(4)
Cumulative Stock
Preferred Stock
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Directors' 7/98 L(5) 1,500 Common 1,500 (5) I(5) (1)(5)
Options Stock
(right to buy)
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Directors' 10/98 L(5) 1,500 Common 1,500 (5) I(5) (1)(5)
Options Stock
(right to buy)
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Directors' 2/1/99 J(4) 3,000 Common (4) 0 I(4)(5) (1)(4)(5)
Options Stock
(right to buy)
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Explanation of Responses:
(1) Pursuant to Rule 13d-4 promulgated under the Securities Exchange Act of 1934, as amended (the "Act"), the reporting person
disclaims beneficial ownership of all securities reported on this statement.
(2) A grant of 1,500 shares of Common Stock was made by the issuer to Paul D. Kazilionis ("Kazilionis"), as director, in October
1998. Prior to February 1, 1999, the reporting person may have been deemed to have a beneficial interest in securities granted to
Kazilionis, pursuant to an agreement between Kazilionis and the Westbrook Funds (as defined in note 3, below).
(3) The record owners of 2,284,262 shares of Common Stock and all shares of Preferred Stock reported on this statement are Westbrook
Real Estate Fund I, L.P. and Westbrook Real Estate Co-Investment Partnership I, L.P. (collectively, the "Westbrook Funds"). Prior to
February 1, 1999, the reporting person was a managing principal of the managing member of the general partner of the Westbrook
Funds.
(4) The reporting person ceased being a managing principal of the managing member of the general partner of the Westbrook Funds on
February 1, 1999 and is therefore no longer subject to Section 16 of the Act in respect of the securities of the issuer.
(5) A grant of directors' options covering 1,500 shares of Common Stock was made by the issuer to Kazilionis, as director, in July
1998. An additional grant of directors' options covering 1,500 shares of Common Stock was made by the issuer to Kazilionis, as
director, in October 1998. Prior to February 1, 1999, the reporting person may have been deemed to have a beneficial interest in
securities granted to Kazilionis, pursuant to an agreement between Kazilionis and the Westbrook Funds.
** Intentional misstatements or omissions of /s/ Jeffrey M. Kaplan February 14, 1999
facts constitute Federal Criminal Violations -------------------------------------------- ------------------------------
See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a). Jeffrey M. Kaplan Date
** Signature of Reporting Person
Note: File three copies of this Form, one
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If space provided is insufficient,
see Instruction 6 for procedure.
Potential persons who are to respond to the collection of information contained in this form are not required to respond unless the
form displays a currently valid OMB number.
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