What next for Aimbridge as it makes big c-suite changes?

Editor's note: Story updated early Wednesday morning.

PLANO, Texas — The world’s biggest third-party management company, Aimbridge Hospitality, is making changes in the c-suite with CEO Mike Deitemeyer stepping down at the end of the year and CFO Tom Song leaving at the end of November. An Executive Committee of the Board, helmed by Aimbridge Chairman Glenn Murphy, has been formed to find the next CEO. A new CFO will be named at a later date.

The company also announced the appointment of industry veteran Stephen Joyce and former executive 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 model from all sides (brands, competition in the space, and the market economy) and Aimbridge, with an eye on a liquidity event (public sale/IPO), may have overextended itself to spur that aggressive growth.”

Ah Moo further posited if Aimbridge is having any sort of capital 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 underwriting should 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 and franchisee experience, including nearly a decade serving as president and CEO of Choice Hotels International. His time at Choice followed a 25-year career with Marriott International, where he rose to the level of executive vice president, Global Development. Most recently, Joyce stepped in from his board seat to lead RE/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.

“The addition of Steve Joyce and Bernardo Hees to the Aimbridge Board of Managers brings unparalleled hospitality experience and corporate transformation know-how to our team. Both have proven experience in driving outsized results for companies and owners, as well as building high-performance cultures,” Murphy said.

Joyce and Hees will join Murphy and Jeff Case, managing director at Advent International, on the Executive Committee and work closely with Aimbridge’s senior leadership team to drive performance.

“The third-party management space is the future of the industry, and Aimbridge is poised to lead the way. The company plans to supercharge growth by expanding our current capabilities and zeroing in on areas that pose the greatest opportunities to gain market share, all while delivering superior results for our owners,” Murphy said.

Deitemeyer assumed the role of president and CEO of Aimbridge Hospitality in January of 2021 after serving as global president following the company’s merger with Interstate in October 2019. Deitemeyer was president and CEO of Interstate Hotels & Resorts from 2017 until the merger and has been in the hotel industry for nearly four decades.

“We want to thank Mike for his contributions to building the Aimbridge legacy. Under his leadership, the company ramped up its commitment to appointing and developing top talent, led several strategic acquisitions that allowed the company to gain a foothold in new markets, and strengthened our relationship with world’s top brands. Mike’s contributions further reinforced Aimbridge’s reputation as a dominant force in the industry and positioned the company for its next phase of growth,” 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.”