NEW YORK (TheStreet) -- Shares of Starwood Hotels & Resorts (HOT) are rising, up 2.48% to $80.50 in pre-market trading on Tuesday, after the company said president and CEO Frits Van Paasschen resigned "by mutual agreement with the board of directors."
Van Paasschen, who has been CEO since September of 2007, will be replaced by Adam Aron as interim CEO until a permanent replacement is found. Aron has acted as director of the hotel company since 2006.
The move follows the hotel's mixed full year earnings results, impacted by currency movements due to its international exposure. Starwood also saw declines in its residential revenue, saying last week that it plans to spin off its time share business.
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Cramer tweeted, "I like the change at the top at Starwood, because I think the company can prosper under Vail Resort ex-CEO and Philly friend Adam Aron."
Stamford, CT-based Starwood is a hotel and leisure company that owns, operates and franchises hotels, resorts and residences under brands like St. Regis, The Luxury Collection, W, Westin, Le Meridien, Sheraton, Four Points, Aloft, and Element.
Separately, TheStreet Ratings team rates STARWOOD HOTELS&RESORTS WRLD as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate STARWOOD HOTELS&RESORTS WRLD (HOT) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its increase in net income, notable return on equity, reasonable valuation levels, impressive record of earnings per share growth and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Hotels, Restaurants & Leisure industry. The net income increased by 82.8% when compared to the same quarter one year prior, rising from $128.00 million to $234.00 million.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Hotels, Restaurants & Leisure industry and the overall market, STARWOOD HOTELS&RESORTS WRLD's return on equity significantly exceeds that of both the industry average and the S&P 500.
- Regardless of the drop in revenue, the company managed to outperform against the industry average of 7.6%. Since the same quarter one year prior, revenues slightly dropped by 0.9%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- STARWOOD HOTELS&RESORTS WRLD reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, STARWOOD HOTELS&RESORTS WRLD increased its bottom line by earning $3.50 versus $2.92 in the prior year. For the next year, the market is expecting a contraction of 15.3% in earnings ($2.96 versus $3.50).
- You can view the full analysis from the report here: HOT Ratings Report