Heyer out after losing board's confidence

Starwood Hotels & Resorts Worldwide Inc, parent of chains that include St. Regis, Westin and Sheraton, said yesterday that CEO Steven Heyer had resigned after losing the board's confidence.

Chairman Bruce Duncan will be interim chief executive while the board conducts a search for a permanent replacement.

"While the board appreciates the good work Steve Heyer has done to position Starwood for the future, issues with regard to his management style have led us to lose confidence in his leadership," said Stephen Quazzo, chairman of the governance and nominating committee.

The company's stock has fallen almost 7 percent from a nearly 19-year high of $69.65 reached on February 15. It closed at $64.85 on Friday.

Starwood forecast strong revenue and profit for the current quarter and full year 2007 when it announced results at the beginning of February, beating Wall Street's expectations.

The White Plains, New York-based company, along with most of the US lodging industry, has been enjoying strong travel demand and limited growth in supply, allowing for steady increases in room rates.

Agencies

(China Daily 04/03/2007 page16)