The Five Dumbest Things on Wall Street This Week
Sternlicht disgusted by hotels' unloading
3. Fallen StarFormer Starwood (HOT) chief Barry Sternlicht has some stern words for his successor.
Starwood, the lodging giant that Sternlicht built over 10 years before his departure this spring, said Monday it would sell 38 upscale hotels to rival Host Marriott (HMT). Top managers at Starwood and Host Marriott were predictably worked up. "We are thrilled to announce this acquisition," Host's Chris Nassetta said.
"This transaction puts a strategic stake in the ground," said Starwood's Steve Heyer, explaining his desire to shift Starwood's focus toward marketing.
Heyer, of course, is the former Coca-Cola (KO) second-in-command who fled the sugar-water giant after he was passed over for CEO in favor of Neville Isdell. When Heyer joined Starwood last year, Sternlicht -- a notoriously hard-to-please boss who remains the company's largest shareholder -- was anything but stingy in his praise.
"Steve embodies all that we were searching for in a new CEO," said Sternlicht in a Sept. 20, 2004, press statement. "I believe this will be a momentous day in the company's short history as we bring in an executive of Steve's caliber from outside the industry to look at Starwood, explore new avenues for growth globally and approach our core hotel business with a fresh set of eyes."
Judging by this week's events, though, Sternlicht is tired of fresh eyes."This is a very black day for Starwood shareholders and its board," Sternlicht told The Wall Street Journal. "I am 100% certain that private-equity interests would have paid more for these assets," he added, calling the deal "amateur hour." Just another momentous day at Starwood. Dumb-o-Meter score: 85. It sounds like the the Sternlicht-Heyer partnership may have lost its fizz.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV