WHITE PLAINS, NY? After almost two years of turmoil in the executive management structure at Starwood Hotels & Resorts, Robert Cotter has been tapped to fill the slot of chief operating officer. Cotter, a 30-year veteran of Starwood and ITT Sheraton, served most recently as president of international operations. Industry analysts who spoke with HOTEL BUSINESS? said that Cotter?s clear status as a hotelier and international experience made him a favorable choice to grow the global lodging company. Even Wall Street seemed to approve of the appointment, with Starwood?s stock price jumping the day after the move; its investment rating was also upgraded from neutral to attractive by PaineWebber.With the appointment, Brenda Barnes, former Pepsi CEO who was serving as interim president, is stepping down from her temporary position to allow Cotter to run the show, including Starwood?s six lodging chains. Cotter will not fill the president position; a spokesperson from Starwood said that the ?slot is not an issue.? Although Cotter declined to comment on his new position and future plans for the company, officials at Starwood did say that employees were very happy about his promotion. In fact, during Starwood?s annual conference in Hawaii in January, Cotter received a standing ovation from the crowd when he was introduced under his former title, president/ international operations, a position he held since December 1999. Prior to that, he served as president/ Europe for Starwood. ?This move says they [Starwood] want to keep their leadership position in the industry,? said Scott Berman, a Miami-based partner of the hospitality and leisure consulting practice of Pricewaterhouse Coopers. ?It parlays Cotter?s market leadership into other areas. The word global does apply to the hotel industry and just look at what he [Cotter] has done at Sheraton. You?re dealing with a known professional, that is important to the overall growth of the company.? While most agree that Cotter?s appointment as COO brings a myriad of positive elements to Starwood?s strategic equation, some say this decision was a little too long in the making. If Cotter?s name came up after Richard Nanula, former president/COO left last year due to reported rifts between him and Barry Sternlicht chairman/CEO, which it probably did since he was an internal candidate sources say, then why didn?t Starwood make the decision back then? ?A lot has to do with timing. I mean, some people weren?t expecting an announcement like this until at least the second quarter of 2000,? said Mark Mutkoski, managing director of Deutsche Banc Alex. Brown. Along with great experience, Mutkoski said that being an insider will really work for Cotter as he takes the reins. ?He has a lot of respect from the troops, which will help to bring cohesion. Also, there won?t be any learning curve.? Mutkoski said he believes that Cotter has a strong understanding of what it will take to position each of the lodging brands. ?Just look at the Sheraton product in Europe and how it grew under his wing,? he said. Even Sternlicht appeared confident regarding Cotter?s experience after making the announcement, noting his tech abilities as a major benefit. In previous discussions regarding filling Starwood?s long vacant COO slot, Sternlicht repeatedly noted the importance of finding someone who was technologically savvy. ?After examining options both inside and outside of the hotel industry, the board decided that the leader with the right mix of experiences Starwood needs was already with the company,? said Sternlicht.
