The Irvine-based real estate investment trust announced earlier this month that two of its long-term board members—Keith Russell and Thomas Lewis—would not stand for reelection at the company’s 2021 annual meeting of stockholders.
In their place, the board has unanimously nominated Kristina Leslie and Verett Mims for election.
Also this month, the company announced the retirement of Executive Vice President and Chief Operating Officer Marc Hoffman.
Hoffman’s COO role at the $2.8 billion-valued REIT is being taken over by Chris Ostapovicz, a former exec at Host Hotels & Resorts.
The company’s stock has seen a rebound in recent months, nearly doubling in value and approaching its pre-pandemic value.
Diversity of Thought
In a statement thanking Russell and Lewis for their tenure, Sunstone Chief Executive and President John Arabia added that Leslie and Mims will “bring diversity of thought and perspective to the board and will be immediately additive to our company.”
The first of the two newly nominated board members, Leslie, was previously the chief financial officer for DreamWorks until her retirement in 2007. She has since served on several public and private boards, currently acting as a director of CVB Financial Corp., Justworks Inc., A Place for Rover Inc. and Blue Shield of California.
Mims, meanwhile, has a finance and banking career spanning 27 years and is the current chief financial officer of Blum Capital Partners LP.
Scouting Opportunities
Sunstone has been slimming down its asset base in recent years, with its current hotel portfolio down to 17 from 30 at the end of 2014.
Sunstone recently offloaded the 502-room Renaissance Los Angeles Airport for $91.5 million, or about $182,300 per key. The deal closed in mid-December.
“The completed sale further concentrates our portfolio into long-term relevant real estate and increases our already considerable liquidity,” Arabia said in a statement at the time of the sale.
Also in December, the REIT finalized the give-back of New York’s Hilton Times Square, which was shuttered during the pandemic. Sunstone took a $107 million impairment as a result of the deal with the Hilton’s mortgage holder.
“Our company is well positioned to navigate the current environment and to capitalize on opportunities as they arise,” Arabia said at the time of the L.A. hotel sale.
