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Brand Dissolves

Arabella Starwood Hotels And Resorts now extinct

Elisabeth Lang, eTN  Aug 29, 2010

(eTN) - The hotel brand Arabella Starwood Hotels & Resorts no longer exists, and the long-term management contracts with Starwood were dissolved this week.

In view of changes being made to international financial reporting standards, the executive board of the holding of Schörghuber Corporate has decided to confine its porfolio in the future exclusively to its own hotel properties and no longer conclude management or lease agreements for third-party hotel properties.

“The decision to make a fundamental change of strategy in our hotel divison, was not an easy one. It is, however, crucial for the sustained success of the Schörghuber Corporate Group, with its approximatly 5,400 employees," said Alexandra Schörghuber, chairwoman of the executive board.

As a result of this change of strategey, the management company for hotels in the group, (Schörghuber Corporate) Arabella Starwood Hotels & Resorts, a joint venture with Starwoods Hotels & Resorts, will be dissolved.

The company was founded in 1998 with the signing of a joint venture agreement between both partners with the aim of preserving the Arabella brand to be introduced in the German-speaking and Majorcan markets. Stefan Schörghuber, however, abondoned this aim when “clean branding” strategy was agreed on in 2007 and subsequently implemented. Today, almost all the hotels in the Arabella Hospitality Group carry globally-recognized brand names belonging to Starwood Hotels & Resorts such as Sheraton, Ewestin, and The Luxury Collection.

Arabella Starwood Hotels & Resorts, the hotel divison within the management company Arabella Hospitality Groups, operates 43 hotels in Germany, Austria, and Switzerland, but also owns the 5-star hotel Son Vida on the balearic Island Mallorca in Spain and the Golf Resort Westin Cape Hotel & Spa in South Africa.

The hotel divison is part of the Schörhuber Corporate Group, which was founded in 1954 and is the third-largest brewery group in Germany with its headquarters in Munich.

Due to disputes and difference in opinion regarding the future growth strategy for the hotels division, Wolfgang M. Neumann, CEO of the Arabella Hospitality Group and member of the executive board of the Schörghuber Corporate Group, was caught by surprise when returning from a 3-week vacation this Monday.

In view of the change in strategy and complete transfer of key management responsibilties to Starwood, he has decided that he would like to pursue a new challenge elsewhere. In addition, Dr. Christoph Scherk is also stepping down this week from the management board of the Arabella Hospitality Group.

Reinhold Weise, general manager of the Westin Grand Munich, who had been with the company for two decades, has been appointed as the new chief executive of the Arabella Hospitality Group. The Schörghuber Corporate Group is now going to focus on its own hotel properties in the future and is increasing the level of collaboration with Starwood Hotels and Resorts.

Arabella Starwood Hotels And Resorts now extinct
Alexandra Schörghuber, chairwoman, executive board, Schörghuber Corporate Group / Image via

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