WHITE PLAINS N.Y. Bruce Duncan has assumed day-to-day responsibility for Starwood Hotels & Resorts Worldwide Inc., a hotel operator and franchisor with more than $590 million in food and beverage revenues, following the resignation of chief executive Steve Heyer over a dispute with the board. Duncan will hold the title of CEO in addition to serving as chairman until a permanent replacement for Heyer is found, Starwood said.
Several analysts say the change in leadership signals a possible sale of the company, perhaps to the private-equity company run by Heyer's predecessor, Barry Sternlicht. His concern, Starwood Capital Group, recently acquired the New York restaurant group B.R. Guest Inc. for $150 milllion.
Heyer tendered his resignation following an acknowledged falling out with Starwood's board. "Issues with regard to his management style have led us to lose confidence in his leadership," Stephen Quazzo, chairman of Starwood's governance and nominating committee, said in a statement released today. The board did not specify what specific aspects of Heyer's style troubled the board. Heyer had served as CEO since October 2004, and also held a seat on the board. Duncan has been chairman throughout that timeframe.
Heyer previously served as president and chief operating officer of Coca-Cola Co.
Starwood's statement quoted Heyer as saying, "I was asked to lead the company through a complex transition and at the same time create an exciting platform for future growth."
Starwood's lodging brands include Sheraton, Westin, Four Points by Sheraton and Le Meridien. Its upscale W hotel group was a pioneer in turning over its restaurants to big-name fine-dining operators such as Todd English and Drew Nieporent. Last year, Starwood entered into an agreement with Catterton Partners, a private-equity firm, to develop high-end restaurants in partnership with New York City's Jean-Georges Vongerichten and Phil Suarez.
