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

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Shares of Starwood Hotels & Resorts Worldwide Inc (NYSE: 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.

Latest Ratings for HOT

Sep 2016CitigroupTerminatesNeutral
Aug 2016CitigroupMaintainsNeutral
Jul 2016Canaccord GenuityTerminatesHold

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