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FORM 5
__ 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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<TABLE>
<CAPTION>
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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)
Westbrook Real Estate Partners, L.L.C. (1)
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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 __ Form Filed by One Reporting Person
(Voluntary) 12/1998 X 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(3) 1,500 A (3) 2,285,762 I (2)(3)(4)
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* If the form is filed by more than one reporting person, See Instruction 4(b)(v).
</TABLE>
<PAGE>
<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 $14.7093 Common 1,699,605 250,000 I (2)(5)
Cumulative Stock
Convertible
Preferred Stock
("Preferred
Stock")
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Directors' 7/98 L(6) 1,500 Common 1,500 (6) I (2)(6)
Options Stock
(right to buy)
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Directors' 10/98 L(7) 1,500 Common 1,500 (7) 3,000 I (2)(6)(7)
Options Stock
(right to buy)
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Explanation of Responses:
(1) - (7) See Attachment A on Pages 3 and 4.
WESTBROOK REAL ESTATE PARTNERS, L.L.C.
** Intentional misstatements or omissions of By: /s/ Patrick K. Fox February 14, 1999
facts constitute Federal Criminal Violations ---------------------------------------- ------------------------------
See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a). Name: Patrick K. Fox Date
Title: Attorney-in-Fact
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** Signature of Reporting Person
Note: File three copies of this Form, one
of which must be manually signed.
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.
</TABLE>
<PAGE>
FORM 5 (CONTINUED)
NAME AND ADDRESS OF REPORTING PERSON: Westbrook Real Estate Partners, L.L.C.
599 Lexington Avenue, Suite 3800
New York, New York 10022
ISSUER NAME AND TICKER OR TRADING SYMBOL: Sunstone Hotel Investors, Inc.-SSI
STATEMENT FOR MONTH/YEAR: 12/1998
ATTACHMENT A
(1) Names and addresses of additional joint filers:
1. Westbrook Real Estate Partners Management I, L.L.C. ("WREM I")
2. Westbrook Real Estate Fund I, L.P. ("WREF I")
3. Westbrook Real Estate Co-Investment Partnership I, L.P. ("WRECIP I")
4. Jonathan H. Paul ("Paul")
5. William H. Walton III ("Walton")
Each at: 599 Lexington Avenue, Suite 3800
New York, New York 10022
6. Gregory J. Hartman ("Hartman")
345 California Street, Suite 3450
San Francisco, California 94104
Reference is made to the joint filing agreement of the reporting persons (the
"Joint Filing Agreement") attached as an exhibit to the statement on Form 3 of
the reporting persons filed with the Securities and Exchange Commission on
October 24, 1997. The Joint Filing Agreement is hereby incorporated herein by
reference.
(2) Pursuant to Rule 13d-4 promulgated under the Securities Exchange Act of
1934, as amended (the "Act"), (i) each of Westbrook Real Estate Partners, L.L.C.
("WREP"), WREM I, Paul, Walton and Hartman disclaims beneficial ownership of all
the securities reported on this statement, (ii) WREF I disclaims beneficial
ownership of all securities reported on this statement in excess of its
proportionate interest in the Common Stock and Preferred Stock reported hereon,
and (iii) WRECIP I disclaims beneficial ownership of all securities reported on
this statement in excess of its proportionate interest in the Common Stock and
Preferred Stock reported hereon.
(3) A grant of 1,500 shares of Common Stock was made by the issuer to Paul D.
Kazilionis ("Kazilionis"), as director, in October 1998. The reporting persons
may have been deemed to have a beneficial interest in securities granted to
Kazilionis, pursuant to an agreement between WREF I and WRECIP I (collectively,
the "Westbrook Funds") and Kazilionis.
(4) WREF I is the record owner of 2,049,135 shares of Common Stock. WRECIP I is
the record owner of 235,127 shares of Common Stock. As the sole general partner
of WREF I and WRECIP I, WREM I may be deemed to own beneficially the Common
Stock owned by WREF I and WRECIP I pursuant to Rule 13d-3 promulgated under the
Act. As the sole managing member of WREM I, WREP may be deemed to own
beneficially the Common Stock owned by WREF I and WRECIP I pursuant to Rule
13d-3 promulgated under the Act. As managing members of WREP, each of Paul,
Walton and Hartman may be deemed to own beneficially the Common Stock owned by
WREF I and WRECIP I pursuant to Rule 13d-3 promulgated under the Act.
(5) WREF I is the record owner of 224,266.60 shares of Preferred Stock. WRECIP I
is the record owner of 25,733.40 shares of Preferred Stock. As the sole general
partner of WREF I and WRECIP I, WREM I may be deemed to own beneficially the
Preferred Stock owned by WREF I and WRECIP I pursuant to Rule 13d-3 promulgated
under the Act. As the sole managing member of WREM I, WREP may be deemed to own
beneficially the Preferred Stock owned by WREF I and WRECIP I pursuant to Rule
13d-3 promulgated under the Act. As managing members of WREP, each of Paul,
Walton and Hartman may be deemed to own beneficially the Preferred Stock owned
by WREF I and WRECIP I pursuant to Rule 13d-3 promulgated under the Act.
(6) A grant of directors' options covering 1,500 shares of Common Stock was made
by the issuer to Kazilionis, as director, in July 1998. The reporting persons
may have been deemed to have a beneficial interest in securities granted to
Kazilionis, pursuant to an agreement between Kazilionis and the Westbrook Funds.
(7) 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. The
reporting persons may have been deemed to have a beneficial interest in
securities granted to Kazilionis, pursuant to an agreement between Kazilionis
and the Westbrook Funds.
