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The Westin Hotel in Boston’s Seaport District is part of DiamondRock Hospitality.
A major hotel real estate investment trust has undergone a top management shakeup, with its founder and CEO set to leave and its executive team reduced by two members.
DiamondRock Hospitality Co. announced Monday that founder and CEO Mark Brugger will leave the company and will be replaced by Jeffrey Donnelly, currently executive vice president and chief financial officer. The company did not give a reason for Brugger’s departure.
Before co-founding DiamondRock in 2004 with current Chairman William McCarten, Brugger served as a senior executive at Marriott International. A year later, he helped DiamondRock complete its initial public offering and took over as CEO of McCarten in 2008, according to the Washington Business Journal.
Donnelly joined DiamondRock in 2019 after 22 years at Wells Fargo Securities, where he co-founded its real estate and lodging equity research platform and helped usher in more than $45 billion in equity transactions.
DiamondRock treasurer Briony Quinn has been appointed to succeed Donnelly as treasurer while continuing to serve as treasurer, according to a news release. Current chief operating officer Justin Leonard will retain his role but will also become president, taking over the responsibilities of chief investment officer Troy Furbay, who is also leaving the company.
“The board believes now is the right time to implement these changes and establish a simpler execution structure that is more aligned with the needs of the business,” McCarten said in a release.[Donnelly] Since joining the company in 2019, he has demonstrated outstanding leadership skills and a keen understanding of our product portfolio and strategy, making him an ideal choice to serve as CEO.
With general counsel Bill Tennis scheduled to retire at the end of June, DiamondRock has reduced its top management staff from six to four people, although the company plans to replace Tennis, WBJ reports.
“I am excited to take on the role of CEO at the dawn of a new era in travel,” Donnelly said in the release. “With our high-quality portfolio of unique lifestyle properties, we are poised to capitalize on the long-term secular demand drivers in the travel industry. factors and achieve sustainable profitable growth.”
DiamondRock owns 36 luxury upscale hotels and resorts in the United States, including the 220-room Bourbon Orleans in New Orleans, the 436-room Westin San Diego, and the 410-room Westin Washington, D.C. City Center. the 1,200-room Chicago Marriott on the Magnificent Mile and the 793-room Westin Boston Seaport District. DiamondRock said in its annual report that more than 60% of its profits come from urban restaurants.
According to the annual report, the company will have revenue of nearly $1.1B in 2023, up 7.3% year over year. Although the average daily room rate will decrease by 2.4% in 2023, the occupancy rate and revenue per available room will increase by 3.8% and 2.9% respectively.
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