Promus Reorganizes, May Sell Some Assets

MEMPHIS? Promus Hotel Corp. is beginning to move in a new direction under CEO Norman Blake?s leadership? the company reorganized its management team and is looking to acquire additional companies. Key executives were promoted in an overall restructuring of the management team, which is only part of its revamped strategy. The Wall Street Journal reported soon after the announcement that Blake had indicated Promus? which merged with the Doubletree Corp. in December 1997? would seek to acquire more companies and would finance the deals by selling hotels. Promus could not be reached at presstime for comment on possible asset transactions. Executive team members will report directly to Blake. Promus? Thomas Keltner, Thomas Storey, Stevan Porter, Dan Hale, Tim Harvey, Kendall Huber and Ann Rhoades have all received executive assignments within the company?s revamped structure. Keltner has been promoted to president of the newly formed Brand Performance and Development Group which was put in place to ?significantly improve the performance of all aspects of Promus? core brand operations,? according to the company. Keltner previously served as executive vp and chief development officer. Storey has been appointed to executive vp of corporate strategic planning and venture operations. Previously the executive vp of sales, marketing and reservations, Storey?s primary responsibilities will include development and accelerated growth of new sources of earnings. Reporting to Storey will be three stand-alone operating businesses: University Hotels and Conference Centers, INNCO (the organization?s shared services provider), and Promus Vacation Resorts which involves timeshare. Porter has been promoted to executive vp of operations for company managed hotels. He will have the responsibility for the management of more than 40,000 employees and upwards of 350 hotels flying the Doubletree Hotels and Guest Suites, Club Hotel by Doubletree, Embassy Suites, Hampton Inn, Hampton Inn and Suites and Homewood Suites flags. Previously Senior VP of Full Service Operations, Porter will oversee 8 newly established regional operations, each under the direction of a regional vp. Each region will be responsible for improving operational efficiencies and revenue generation for each hotel within its geographical area. according to the company. Harvey will be working as executive vp and chief information officer for Promus while Hale and Huber will assume positions of executive vp/CFO and executive vp and general counsel respectively. Rhoades will remain in her current position of executive vp of team services. ?Promus has assembled one of the most experienced and talented management teams in the industry,? Blake said. ?The organizational realignments we have made provide greater concentration of resources and talent in improving the performance of our core brands, accelerating the development of new sources of earnings, and improving the operational effectiveness of our hotel operations. I am convinced that we now have the muscle behind our strategy which should result in superior performance.? Promus has system-wide hotel revenues of roughly $5 billion. The company owns, operates or franchises more than 1,300 hotels with more than 192,000 rooms throughout the U.S., Canada, Mexico and Latin America.