Starwood Hotels & Resorts CEO Steven Heyer has resigned his position amid concerns about his management style, the company announced today.
Board chairman Bruce Duncan will serve as interim CEO as the board searches for Heyer's replacement. Heyer had been on a four-year contract with Starwood—parent company to brands including Westin, Sheraton, St. Regis and W—since September 2004, but despite the company's strong performance, Starwood's board lost confidence in his leadership because of management style issues, according to Stephen Quazzo, chairman of Starwood's governance and nominating committee.
"He's done a good job, but he's got a difficult style," Duncan said in a conference call to investors today. "I think it just came to a head, and Steve and the board mutually agreed this was a good time to make a change."
One point of contention was that Heyer maintained his home in Atlanta while commuting to Starwood's White Plains, N.Y., headquarters. Quazzo said the board would require the new CEO to be based in White Plains.
Starwood today also announced the departure of chief marketing office Javier Benito, although the board said it was unrelated to Heyer's resignation.
The board is considering both external and internal candidates for CEO as well as those outside of the hospitality industry. Although it already has enlisted a search firm for the process, the board has put no time limit on its search, Duncan said.
Duncan—who most recently served as president and CEO of real estate investment trust Equity Residential—said Heyer's departure did not indicate any shift in Starwood's goals and growth plans. The company this morning also reaffirmed its forecast for first-quarter earnings.
"This is a change in leadership, not a change in direction or strategy," Duncan said.
Starwood becomes the second large hotel company to launch a search for a new CEO, following Hilton Hotels Corp.'s January announcement that Stephen Bollenbach will leave his leadership post at year-end
(BTN, Jan. 22). Hilton expects to complete the search by the end of the summer.