Starwood Hotels &Resorts Worldwide Inc (NYSE:HOT) is considering alternative strategies to help the company gain more investor value.
The company is under new management after the former CEO stepped down two months ago. During the time Frits van Paasschen was at the helm of the company, there was little growth and not much effort to improve the welfare of the company. Adam Aron is the current acting CEO, whom the company hopes will lead them to a preferable position. Starwood is counting on the new leadership to guide the company into achieving a more stable and pleasing growth curve.
Bruce Duncan who is the current chairman of the company stated that Starwood was considering all the available options in the efforts to achieve results that will be appealing to the investors. However, the company declined to reveal any additional information on the matter until the review process is over.
The claim that all options will be put into consideration was received with a lot of speculation from analysts. Ryan Meliker who is one of the analysts claimed that the statement could be a hint that the company was also considering buy-offs. He further stated that should the company be considering that option, it would be worth over $100 per share to any prospective buyer.
It seems unlikely that Starwood would be considering being bought out by another firm though it is not entirely impossible. The company is believed to have performed poorly during Paasschen’s reign because it failed to use its influence to add other hotels to its brand. Duncan is now tasked with ensuring that the company completely exploits those opportunities.
The company already has a few additions to its portfolio such as Sheraton. The most recent and perhaps most important one is the acquisition of the Tribute Portfolio brand. The brand will be influential in Starwood’s expansion.
First quarter earnings or Starwood dropped by 2.9% to settle at $1.42 billion. Aron’s report stated that the company expects future results to be pleasing following the measures being put in place.