- Push-out Score determined
- After almost seven years in the position
- Praise, thanks and good wishes for Arabia
- Douglas Pasquale taking over temporarily
- Search for a successor
(exechange) — Irvine, California, September 2, 2021 — John Arabia, chief executive of Sunstone Hotel, leaves — by “mutual agreement.” As announced by Sunstone Hotel Investors Inc. in a news release and in a regulatory filing published on Thursday, September 2, 2021, John V. Arabia leaves his post as chief executive officer at the lodging real estate investment trust, after almost seven years in the role, effective immediately.
Sunstone Hotel will undertake a search for a successor.
John Arabia’s duties as CEO will be taken over temporarily by Douglas M. Pasquale, most recently Chairman at Sunstone Hotel Investors Inc., as interim Chief Executive Officer.
“Unlock latent value”
Sunstone Hotel did not give an explicit reason for John Arabia’s departure from the CEO post. Pasquale said: “With the proceeds of accelerated sales of non-core assets and modest incremental leverage, we intend to invest in our remaining hotels to unlock latent value and acquire additional hotels that are more likely to create long-term per-share NAV growth, such as the recently acquired Montage Healdsburg Resort.”
Precise information regarding John Arabia’s future plans was not immediately available.
Sunstone Hotel said: “Sunstone Hotel Investors, Inc. (the “Company” or “Sunstone”) (NYSE: SHO), the owner of Long-Term Relevant Real Estate® in the hospitality sector, today announced the appointment of Douglas M. Pasquale, current Chairman of the Sunstone Board, as the Company’s interim Chief Executive Officer, effective immediately. This appointment follows a mutual agreement to separate between the Board of Directors and John Arabia, who will leave his role as President & Chief Executive Officer and has resigned as a Director of the Company effective immediately.”
Sunstone Hotel further said: “On September 2, 2021, the Board of Directors (the “Board”) of Sunstone Hotel Investors, Inc. (the “Company”) determined to separate with John V. Arabia, with respect to his role as the Company’s President and Chief Executive Officer. In addition, Mr. Arabia and the Company mutually agreed that he would resign from the Board.”
“Not related to any matter”
“These actions were not related to any matter regarding the Company’s financial condition, reported financial results, internal controls or disclosure controls and procedures,” Sunstone Hotel said.
Share price decline since September 2016
The announcement follows a decline in Sunstone Hotel Investors Inc.’s share price of 15% since September 2016.
In the position of CEO since 2015
John Arabia became CEO of the Company in 2015.
Arabia was the Company’s President and CEO, and a director.
On April 4, 2011, Arabia began serving as the Company’s Executive Vice President of Corporate Strategy and Chief Financial Officer.
On February 15, 2013, he was promoted to President, on February 19, 2014, he was appointed to serve as a member of the Company’s Board of Directors, and on January 17, 2015 he was promoted to President and CEO.
Prior to joining Sunstone, Arabia served as Managing Director of Green Street Advisors’ (“Green Street”) real estate research team.
Arabia joined Green Street in 1997 and created and managed the firm’s lodging research platform. Prior to joining Green Street, Arabia was a Consulting Manager at EY Kenneth Leventhal in the firm’s west coast lodging consulting practice.
Arabia also served on the board of directors of Education Realty Trust, Inc. (NYSE: EDR) until its privatization on September 20, 2018.
Arabia served as chair of the nominating and corporate governance committee and as a member of the investment and oversight committee of the board of directors of EDR.
He also serves on the Executive Committee of the American Hotel & Lodging Association (AHLA) and is a member of AHLA’s Real Estate Finance Advisory Council (IREFAC).
Arabia, who earned a CPA certificate from the state of Illinois, holds an M.B.A. degree in Real Estate/Accounting from the University of Southern California and a B.S. degree in Hotel Administration from Cornell University.
Push-out Score determined
The Push-out Score™ determined by exechange gauges the pressure surrounding John Arabia’s move on a scale of 0 to 10.
Read the full story in the exechange report 36.2021 ($).