Morgans Hotel Group Announces Resignation of CEO
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Morgans Hotel Group Announces Resignation of CEO
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Category: North America & West Indies / Carribean islands - Careers -
Appointments
This is a press release selected by our editorial committee and published online for free on 2007-09-21
Board Member Fred Kleisner Appointed Interim President and CEO
The Board of Directors of Morgans Hotel Group Co. (NASDAQ: MHGC) ("MHG") today announced that W. Edward Scheetz has resigned by mutual agreement with the Company as President and Chief Executive Officer and as a director of the Company in order to permit him to address personal issues. The Company also announced today that Fred J. Kleisner, a director of the Company, has been named as interim President and Chief Executive Officer, effective immediately.
The Company has retained Spencer Stuart to assist the Board in its search for a permanent chief executive officer. Mr. Scheetz has agreed to make himself available to assist the Company in the transition following his resignation.
"We are extremely fortunate to have someone of Fred's caliber taking over as interim CEO," said David T. Hamamoto, Chairman of Morgans Hotel Group. "Fred has already been the CEO of a publicly traded hotel company, and as a director of MHG, he knows our business strategy and operations well and has a detailed understanding of the Company's strengths and future direction. Over the course of Fred's career, he has accumulated a depth of experience in the hotel and leisure industry as well as substantial expertise in the boutique hotel sector."
Mr. Kleisner said, "I look forward to working with the MHG Board and management team as we continue to build on the success of our strategy."
Mr. Hamamoto added, "The Board would like to acknowledge the contributions of Ed Scheetz and extends its gratitude for the progress MHG made during his tenure."
Mr. Kleisner served as the Chief Executive Officer of Wyndham International from 2000 to 2005. He was also named Chairman of the Board of Directors in October of that year. He previously served as President and Chief Operating Officer of The Americas for Starwood Hotels & Resorts Worldwide, Inc. His more than 40 years of experience in the industry also includes senior positions with Westin Hotels and Resorts, where he was President and Chief Operating Officer from 1995 to 1998; Interstate Hotels Company, where he was Executive Vice President and Group President of Operations from 1990 to 1995; The Sheraton Corporation, where he was Senior Vice President, Director of Operations, North America Division-East from 1985 to 1990; and Hilton Hotels, where for 16 years he served as General Manager of several landmark hotels, including The Waldorf=Astoria and The Waldorf Towers in New York, The Capital Hilton in Washington, D.C. and The Hilton Hawaiian Village in Honolulu.
Mr. Scheetz has entered into a separation agreement and release with the Company pursuant to which he will retain his vested and unvested equity awards. No additional payment will be made in connection with the separation.
Outlook
The Company's operational performance and financial condition remain strong. The Company reaffirms its guidance for the full year 2007, which was provided in its earnings release on August 2, 2007.
Conference Call
Morgans Hotel Group will conduct a conference call for the investment community today at 9:00 a.m. ET to discuss today's announcement. To participate, please dial (888) 693-3477 (within U.S.) or (973) 582-2710 (outside U.S.) 15 minutes prior to the start of the call and enter conference ID number 9266879.
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