Starwood CEO quits in ‘mutual’ decision

Starwood CEO resigns
Starwood CEO resigns   

Frits van Paasschen, president and chief executive of international hotel chain Starwood, has resigned "by mutual agreement with the board of directors," according to the company.

Adam Aron, a director on the Starwood board since 2006, will serve as interim chief executive until a permanent replacement can be found.

The news followed a mixed full-year results for the hotel group, which has larger international exposure than many of its U.S. counterparts, and is therefore more vulnerable to currency movements. It has also been hit by declines in its residential revenues, and said last week it would spin off its time share business.

Van Paasschen has been chief executive of the company since September 2007.

Starwood, which forecasts a lower-than-expected full-year profit last week due to a stronger dollar, said it had started looking internally and externally for a permanent CEO.

"The board believes now is the right time to take steps to accelerate Starwood's growth, improve performance, and sharpen our focus on operational excellence," Chairman Bruce Duncan said in a statement on Tuesday.

Starwood's shares were up 1.1 percent at $79.45 in pre-market trading.

- Reuters contributed to this report.