Starwood Hotel Shares Surging ~2% Following CEO Resignation; MLV & Co Says Investors Were Frustrated

Shares of Starwood Hotels & Resorts Worldwide Inc HOT are rising in Tuesday's pre-market session following the resignation of CEO Frits D. van Paasschen and the appointment of Adam Aron to Interim CEO.

MLV & Co says investors have been growing frustrated with Starwood's slower system expansion and a "murky return of capital story."

MLV expects a positive stock reaction following the news.

"While we believe uncertainty surrounding the longer-term CEO role is modest cause for concern, we also believe having someone like Aron in place makes the transition a bit smoother than otherwise," the firm wrote in a recent note.