Sunstone Hotel Investors Inc. added Michael Barnello to its board of directors on Nov. 15 following a shareholder’s recent push to refresh the company’s board.
Barnello is the founder and managing partner at Badlands Hotel Capital, headquartered in Arlington, VA, and he was previously the chief executive of LaSalle Hotel Properties (NYSE: LHO).
Sunstone said Barnello will serve as an independent director until the company’s annual stockholders meeting in 2026, where the REIT will nominate him for election, according to SEC filings.
Barnello’s appointment brings the board from eight to nine directors and appears to be in tune with the recent pitch from shareholder Tarsadia Capital for “immediate refreshment.”
Tarsadia, which owns a 3.4% stake in Sunstone, penned a letter in September urging the hospitality company to find a buyer or liquidate its assets.
“We appreciate the constructive engagement we have had with Sunstone’s Board of Directors and management team,” Tarsadia Managing Director Michael Ching said in a statement on Nov. 17. “We are excited about Mr. Barnello’s addition to the Board and are confident he will be additive to Sunstone’s ongoing efforts towards realizing value for its shareholders.”
Shares of Sunstone were down 3.2% to $9.19 during midday trading with a market cap of $1.8 billion.
