Arabella parent dissolves joint venture with Starwood Hotels

MUNICH The parent company of Arabella Hospitality Group has dissolved the joint-venture deal with Starwood Hotels & Resorts Worldwide, ending the existence of the StarwoodArabella Hotels & Resorts brand.

Starwood will manage and continue to flag Arabella’s 43 hotels in Germany, Spain and Switzerland. Most Arabella properties bear the flags of Starwood’s St. Regis, The Luxury Collection, Westin, Le Meridien, Sheraton or Four Points by Sheraton brands.

Simon Turner, president of global development for Starwood, backs the revised framework between the two companies. “We fully support the recently announced changes in Arabella Hospitality Group’s hotel strategy and will work together with our partner to ensure the day-to-day business of our hotels in these markets will remain unaffected,” Turner says. “We are delighted to have the opportunity to increase our level of involvement in the ongoing management of these hotels and will continue to deliver the exceptional service our customers and guests expect. Starwood Hotels & Resorts is looking forward to further growing all of our industry-leading brands in the markets.”

In a related move, Arabella President and CEO Wolfgang M. Neumann has announced his resignation, citing differing views on the future strategy for the business. Reinhold Weise, area manager and longtime general manager of The Westin Grand München, will take over Neumann’s responsibilities at Arabella.

Schörghuber Corporate Group cites revisions to International Financial Reporting Standards related to valuation of leased assets for the decision to end third-party management and leasing deals across its hotel portfolio. Going forward, Schörghuber plans to own and exclusively operate its hotels.

In addition to the departure of Neumann, Christoph Scherk has retired from Arabella’s board of directors.

“The decision to change the fundamental strategy for our properties we have not made easily,” says Alexandra Schörghuber, chairman of the board of Schörghuber, in a translation from German. “However, it is essential to the continued success of Schörghuber Group, with around 5,400 employees. We thank the directors Wolfgang M. Neumann and Dr. Christoph Scherk for their dedication, their high loyalty and a successful collaboration.”