Starwood Hotels & Resorts Worldwide, Inc. (HOT, Financial) CEO and President Van Paasschen has officially put down his papers. Adam Aron will act as interim CEO until a replacement has been found, according to the operator of Westin, Sheraton and other Starwood brands.
Starwood Hotels and Resorts Worldwide, Inc. has its headquarters located in Stamford, Connecticut. It is one of the world's biggest hotels. Starwood owns, manages or has franchised around 1,162 properties and offers spa services, resorts, vacation packages, residences, etc. Starwood's largest upscale brand is The Westin Hotels and Resorts. Sheraton, Four Points by Sheraton, The Luxury Collection, W Hotels are few of its other brands. The hotel had fourth-quarter 2014 revenues of around $1.49 billion. The revenue for the entire year of 2014 is reported at $5.98 billion. This amount was 2.16% lower than the previous year's revenue. According to data on February 10, 2015, the earnings per share were 3.02.
CEO history
Starwood's founder and CEO Barry Sternlicht resigned as a CEO in 2004 since he had to focus on Starwood Capital, the other firm. Steven J. Heyer then succeeded him. However, issues about personal misconduct surfaced. His management style was criticized by many. He was then removed on the request of the board of directors. Bruce Duncan, the chairman of the board, was the interim CEO until September 2007. Finally, Frits van Paasschen was declared Heyer's successor. Now that Frits has resigned after serving the company for seven years, Adam Aron will serve as the interim CEO until a new CEO is appointed.
Adam Aron has been on the board since 2007. He was the CEO of Philadelphia 76ers for two years, from 2011 to 2013. He was also the CEO of World Leisure Partners Inc., the leisure-related consultancy company since 2006. He was also the CEO of Vail Resorts, Inc. (MTN, Financial) and Norwegian Cruise Line Holdings Ltd. (NCLH, Financial). With so much of CEO experience in his kitty, Adam Aron will surely make a good CEO of Starwood if he is appointed as one. He will provide his expertise on the board to help with the smooth transition. He also served on the Capital Committee, Nominating Committee and Audit Committee as well as chaired the Option Committee.
The chairman of the board speaks
Chairman of the Board Bruce Duncan said that this was the perfect time to take steps so as to accelerate the company's growth. He also said that the company will focus on improving performance and sharpening its skills on operations. He said that Starwood was fortunate to have Adam on the board as he has prior CEO experience. Besides he added that Adam is well acquainted with the company's brands, strategies and leaders from all over the world. Bruce Duncan was very confident that the company will not miss a beat during this transition period.
Starwood announced recently that it may spin off its timeshare business as a separate company. They climbed the highest value in three years after the announcement on February 10. According to data by Bloomberg, the company reported net income of the fourth quarter of $1.33 per share. This beat the estimates of 76-cent average, according to nine analysts. Van Paasschen said in a statement that Starwood is currently in a stronger position for the future. The company has always challenged itself to deliver bold plans along with finding innovative ideas to provide the guests with better experiences.
