Frits van Paasschen knows all about sneakers and beer.
He boosted sales of those products around the world and turned around a struggling brand as a former executive in those industries.
Now, van Paasschen is about to test his skills as a hotel guy.
Starwood Hotels & Resorts Worldwide Inc. considered more than 60 candidates during a five-month search for new chief executive officer before offering the job to van Paasschen. The company cited his 20-plus years of experience with consumer lifestyle brands as a major factor in the choice. Van Paasschen, 46, previously was a senior executive at Nike Inc., the world’s largest sneaker company, and Coors Brewing Co., the third largest U.S. brewer.
“You have a really experienced and savvy marketing executive who understands how to build brands,� board member Stephen Quazzo said yesterday in a conference call.
Quazzo, who headed Starwood’s executive search team, said that van Paasschen was the company’s top choice. He said that no one else was offered the job to lead the White Plains-based hotel company, whose brands include Sheraton, Westin and St. Regis.
“We wanted someone who would be people friendly and really a great guy, and we have that,� Quazzo said.
Quazzo said that van Paasschen’s attributes also include a keen appreciation of customer service, broad international experience and and a reputation as a team player.
Van Paasschen succeeds Bruce W. Duncan, who has served as interim CEO since April. Duncan will remain as chairman.
“I firmly believe he is the ideal candidate to lead the company in the future,� Duncan said on the conference call.
Van Paasschen most recently spent 2ÿ years as president and CEO of Coors Brewing Co., helping to boost market share and reverse nine quarters of decline in the flagship brand, Coors Light. During an earlier seven-year stint at Nike, he oversaw the company’s business in Europe, the Middle East and Africa as revenues surged from $2.5 billion to nearly $4 billion.
“I recognize some significant differences between beer, sneakers and hotel rooms,� van Paasschen said on the conference call.
Noting that all successful products resonate with consumers, van Paasschen said that Starwood has enormous growth opportunities.
“In many ways, Starwood has redefined the hospitality industry,� van Paasschen said.
Van Paasschen takes over as CEO on Sept. 24. Duncan has served as interim CEO since the April resignation of Steven J. Heyer, amid feelings by board members that they had lost confidence in him due to his management methods, the company said.
In August, Starwood raised its profit forecast for the year as it benefited from strong travel and rising room rates around the world. Starwood, whose portfolio includes 105,000 rooms in more than 100 countries, reported operating profits of $178 million in the second quarter, up from $169 million a year earlier. Revenues jumped 4.5 percent to $1.57 billion.
Jeremy Glaser, an analyst at Morningstar, said that there are pros and cons to Starwood’s selection of van Paasschen.
“Although we are not thrilled that he has no previous experience in the hospitality industry, we think that Mr. van Paasschen’s marketing and branding prowess will help Starwood better differentiate its brands and segment the market more effectively,â€? Glaser said in a research report.