Starwood Hotels' CEO Quits After Losing Support of the Board

Starwood Hotels & Resorts Worldwide released a statement saying CEO Steve Heyer had resigned after losing the support of the company's board. The Wall Street Journal termed the move an "abrupt and unexpected management shakeup." Heyer became CEO of the nation's third largest hotel chain, with 870 properties under its belt, after quiting Coca Cola in 2004 when the company failed to promote him to CEO (he was President at the time of his resignation). Starwood manages several well-known hotel names including St. Regis and Sheraton. Chairman Bruce Duncan will replace Heyer as interim CEO until a permanent replacement can be found. In the press release, Starwood reaffirmed its earnings guidance and quoted Stephen R. Quazzo, Chairman of the Governance and Nominating Committee of the Starwood Board, as saying, "Given the Company's deep management team and Bruce Duncan's willingness to serve as interim CEO on a full-time basis as long as he is needed, the Board is confident Starwood's performance will not miss a beat."

Sources: Press Release, Bloomberg, Wall Street Journal, MarketWatch
Commentary: Some Like it Hot: Pirate Capital Initiates Stake in Starwood Hotels & Resorts • Investing in China's Tourism Industry • Cramer's Take on HOT
Stocks/ETFs to watch: Starwood Hotels & Resorts Worldwide (HOT). Competitors: Hilton Hotels Corporation (HLT), Marriott International (MAR), InterContinental Hotels Group PLC (IHG). ETFs: PowerShares Dyn Leisure & Entertainment (PEJ)

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