Steve Heyer Resigns as CEO of Starwood Hotels & Resorts
Chairman Bruce Duncan Will Also Serve as Interim CEO While Search is Conducted Company Reaffirms Earnings Guidance
WHITE PLAINS, N.Y. | The Board of Directors of Starwood Hotels & Resorts Worldwide, Inc. (NYSE: HOT) announced today that Steven J. Heyer has resigned as Chief Executive Officer and a director. Heyer, 54, had been CEO and a director since October 2004. Bruce W. Duncan, 55, Starwood’s Chairman since 2005 and a director since 1995, will also serve as interim CEO while the Board conducts a search for a permanent replacement.
Stephen R. Quazzo, Chairman of the Governance and Nominating Committee of the Starwood Board, said, “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. Starwood today is performing well and has a strong market position, a winning strategy, and significant growth potential. 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.”
Bruce Duncan said, “I know from serving as Chairman for the past two years and a Board member for more than a decade that Starwood is pursuing the right strategy. We are currently in the middle of a dynamic growth period, including expanding our footprint substantially around the globe. Starwood has a strong market position, important owner and developer relationships, an excellent management team, and talented employees. The Board is confident in Starwood’s prospects and focused on continuing to build shareholder value. I will be based in White Plains and look forward to leading Starwood as we execute its successful continuing transformation from a cyclical real estate business into a leading global hotel operator and lifestyle company.”
Steven Heyer said, “I was asked to lead the Company through a complex transition and at the same time create an exciting platform for future growth. I am proud of what we have accomplished in the last 2-1/2 years and believe Bruce Duncan and the team will continue to execute Starwood’s strategy with distinction. Starwood is performing extremely well and I am confident it will enjoy continued success in the future.”
The Board of Directors has retained Spencer Stuart to assist in its search for a permanent CEO and intends to thoroughly evaluate both internal and external candidates.
From 2002 through 2005, Bruce Duncan was President and CEO of Equity Residential, the largest publicly traded apartment REIT with revenues of $2.1 billion and an enterprise value of over $20 billion. From 1995 to 2000, he was Chairman, President and CEO of Cadillac Fairview Corporation where he led the post-bankruptcy turnaround of this major real estate company. Previously he spent 16 years at JMB, most recently as President and Co-CEO of JMB Institutional Realty Corporation. Duncan holds an MBA degree in Finance from the University of Chicago and an AB degree in Economics from Kenyon College.
Outlook
The Company reaffirms its guidance for the full year and first quarter of 2007, which was provided in its 2006 earnings release on February 1, 2007. Starwood will announce its first quarter 2007 financial results on April 26, 2007.
Conference Call and Webcast
Starwood will conduct a conference call and webcast for the investment community today at 9:00 a.m. ET to discuss today’s announcement. To participate, please dial (866) 710-0179 (within U.S.) or (334) 323-9872 (outside U.S.) 15 minutes prior to the start of the call and enter conference ID number 82311682. A playback of the conference call will be available through April 16, 2007. To access the playback, please dial (877) 656-8905 (within U.S.) or (334) 323-9859 (outside U.S.) and enter conference ID number 82311682.
The conference call will be available through simultaneous webcast in the Investor Relations/Press Releases section of the Company’s website at .
Starwood Hotels & Resorts Worldwide, Inc. is one of the leading hotel and leisure companies in the world with approximately 850 properties in more than 95 countries and 145,000 employees at its owned and managed properties. Starwood® Hotels is a fully integrated owner, operator and franchisor of hotels and resorts with the following internationally renowned brands: St. Regis®, The Luxury Collection®, Sheraton®, Westin®, Four Points® by Sheraton, W®, Le Méridien® and the recently announced AloftSM and ElementSM Hotels. Starwood Hotels also owns Starwood Vacation Ownership, Inc., one of the premier developers and operators of high quality vacation interval ownership resorts. For more information, please visit .
Note: This press release contains forward-looking statements within the meaning of federal securities regulations. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties and other factors that may cause actual results to differ materially from those anticipated at the time the forward-looking statements are made. Further results, performance and achievements may be affected by general economic conditions including the impact of war and terrorist activity, business and financing conditions, foreign exchange fluctuations, cyclicality of the real estate (including residential) and the hotel and vacation ownership businesses, operating risks associated with the hotel, vacation ownership and residential businesses, relationships with associates and labor unions, customers and property owners, the impact of the internet reservation channels, our reliance on technology, domestic and international political and geopolitical conditions, competition, governmental and regulatory actions (including the impact of changes in U.S. and foreign tax laws and their interpretation), travelers’ fears of exposure to contagious diseases, risk associated with the level of our indebtedness, risk associated with potential acquisitions and dispositions, and the introduction of new brand concepts and other risks and uncertainties. These risks and uncertainties are presented in detail in our filings with the Securities and Exchange Commission. Future vacation ownership units indicated in this press release include planned units on land owned by the Company or by joint ventures in which the Company has an interest that have received all major governmental land use approvals for the development of vacation ownership resorts. There can be no assurance that such units will in fact be developed and, if developed, the time period of such development (which may be more than several years in the future). Some of the projects may require additional third-party approvals or permits for development and build out and may also be subject to legal challenges as well as a commitment of capital by the Company. The actual number of units to be constructed may be significantly lower than the number of future units indicated. Although we believe the expectations reflected in such forward-looking statements are based upon reasonable assumptions, we can give no assurance that our expectations will be attained or that results will not materially differ. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
K.C. Kavanagh
914 640-8339
Starwood
