Meditrust To Cash In On New CEO?s Expertise

NEEDHAM, MA? The Meditrust Cos. has completed its two-month-long search for a new CEO with the naming of former Red Roof Inns Chairman/ President/CEO Francis (Butch) Cash to the post that had been held on a transitional basis by board member Bill Byrnes. Byrnes replaced David Benson, who left as Meditrust Corp. president/ treasurer/CEO in late January. With the appointment of Cash, Meditrust has landed a high-profile executive familiar with both of the organization?s main lines of business? health care (recently targeted to be scaled back) and lodging via La Quinta Inns. Most recently CEO of Mariner Post-Acute Network, one of the nation?s largest nursing home operators, and a veteran of earlier senior-level service with NovaCare and Marriott Corp., Cash will have his work cut out for him in view of La Quinta?s debt-ridden status. The economic conditions that surround La Quinta forced the exit of former La Quinta President/CEO Ezzat Coutry just a few months ago while prompting the parent organization to position itself to sell-off its health care-related assets in order to pay down debt and provide additional funding to buoy up its hotel division?s operations. At the time of Coutry?s resignation, Chairman Clive Bode declined to comment on whether Meditrust would attempt a repositioning of the brand, or a sell-off of any La Quinta properties. Similarly, no word was forthcoming about possible acquisitions that might help successfully reverse the fortunes of Meditrust?s lodging operations. However, Meditrust?s recently announced five-point plan of reorganization shows an intent to focus on enhancing the long-term growth potential of the lodging division. The Meditrust board reportedly believed that by focusing on internal growth and improving efficiency, the lodging division would be positioned to benefit from improving industry trends when the supply/ demand imbalance begins to moderate.