Starwood Hotels Chief Departs Amid Company Redirection
Starwood Hotels CEO Frits van Paasschen (above) resigned this morning, with the company's board saying the move came by "mutual agreement" but giving no further reason for the exit. Van Paasschen had held the position since 2007. Last Tuesday Starwood, which operates the Westin, Sheraton, W and St. Regis chains, among others, announced it would spin off its timeshare unit into a public company, leading to a 10% jump in early trading.
The executive shakeup comes amid a shift in focus toward property management for the hotel unit of Barry Sternlich's Starwood Capital Gruop. It recently sold the Sheraton on the Park in Sydney for $399M. And earlier today, The Real Deal reported that Starwood Capital had sold its remaining 49.9% stake in Manhattan's Hilton Garden Inn. Van Passchen will be a consultant for the company while Adam Aron assumes the role of interim CEO.
