Editor's note: Story updated early Wednesday morning.
PLANO, Texas — The world’sbiggest third-party management company, Aimbridge Hospitality, is makingchanges in the c-suite with CEO Mike Deitemeyer stepping down at the end of theyear and CFO Tom Song leaving at the end of November. An ExecutiveCommittee of the Board, helmed by Aimbridge Chairman Glenn Murphy, has beenformed to find the next CEO. A new CFO will be named at a later date.
Thecompany also announced the appointment of industry veteran Stephen Joyce and formerexecutive chairman of Avis Group Group Bernardo Hees to its board of managers.
Aimbridge would not immediately comment on why these changes are being made. Hotel Investment Today did reach out to industry insiders, however, to try to make better sense of the move.
Deitemeyer had suggested in the past that the Plano, Texas-based company was positioning itself for an eventual IPO, and it seemed to be the intention of major shareholder Advent International, a private equity firm that took a majority ownership stake in 2019 and merged it with competitor Interstate Hotels & Resorts. However, higher interest rates and a choppy public market might have slowed the process.
Baron Ah Moo, managing director, U.S., for PKF Hospitality Group suggested,“There is pressure on the third-party management fee modelfrom all sides (brands, competition in the space, and the market economy) andAimbridge, with an eye on a liquidity event (public sale/IPO), may haveoverextended itself to spur that aggressive growth.”
Ah Moo further posited if Aimbridge is having any sort ofcapital issue that debt will be an issue for the next six to 12 months. “So,strategic investors that can be accretive and assist in their underwritingshould be considered,” he said.
There have also been rumblings about weaker performance at Aimbridge as it focused on growth, as well as owners looking for smaller, third-party firms to get more individual attention from their operator. With rumors like that swirling, change is not an unexpected outcome.
The first move by Aimbridge was to bring in Joyce, who has more than four decades of multi-brand andfranchisee experience, including nearly a decade serving as president and CEOof Choice Hotels International. His time at Choice followed a 25-year careerwith Marriott International, where he rose to the level of executive vice president, GlobalDevelopment. Most recently, Joyce stepped in from his board seat to leadRE/MAX Holdings following a run as CEO of Dine Brands Global.
Hees has also been CEO at Burger King Worldwide Holdings,Inc., The Kraft Heinz Company, and America Latina Logistica.
“Theaddition of Steve Joyce and Bernardo Hees to the Aimbridge Board of Managersbrings unparalleled hospitality experience and corporate transformationknow-how to our team. Both have proven experience in driving outsized resultsfor companies and owners, as well as building high-performance cultures,”Murphy said.
Joyce and Hees will join Murphy and Jeff Case, managing directorat Advent International, on the Executive Committee and work closely withAimbridge’s senior leadership team to drive performance.
“The third-party management space is the future of theindustry, and Aimbridge is poised to lead the way. The company plans tosupercharge growth by expanding our current capabilities and zeroing in onareas that pose the greatest opportunities to gain market share, all whiledelivering superior results for our owners,” Murphy said.
Deitemeyerassumed the role of president and CEO of Aimbridge Hospitality in January of2021 after serving as global president following the company’s merger withInterstate in October 2019. Deitemeyer was president and CEO of InterstateHotels & Resorts from 2017 until the merger and has been in the hotelindustry for nearly four decades.
“We wantto thank Mike for his contributions to building the Aimbridge legacy. Under hisleadership, the company ramped up its commitment to appointing and developingtop talent, led several strategic acquisitions that allowed the company to gaina foothold in new markets, and strengthened our relationship with world’s topbrands. Mike’s contributions further reinforced Aimbridge’s reputation as adominant force in the industry and positioned the company for its next phase ofgrowth,” Murphy said.
Deitemeyer posted a message on his LinkedIn account saying, “Throughout my career, I’ve been lucky to have been part of many exciting changes in our industry, but I believe the best is yet to come. The third-party space is the future of hospitality, and Aimbridge is poised to lead.
“I am incredibly grateful to have met and worked alongside so many talented, and wonderful people during my time leading Aimbridge—our associates, owners, brands partners, suppliers, and countless others. Thank you for the partnership and friendship. It’s been an awesome ride.”
