AMC Theatres names Starwood CEO Adam Aron as its new CEO

AMC Entertainment Holdings, which operates AMC movie theaters, has named Starwood Hotels & Resorts CEO Adam Aron as its new CEO and president Tuesday, tapping a seasoned executive with experience in hospitality amid industry challenges brought on by streaming and home theater technology.

AMC's previous CEO, Gerry Lopez, resigned in August to run hotel chain Extended Stay America. Aron replaces Craig Ramsey, who has served as interim CEO since Lopez's departure. Ramsey will remain AMC’s CFO, reporting directly to Aron.

Aron, 61, will start his job on Jan. 4, 2016, and will be a member of AMC's board of directors.

Shares of AMC, which is based in Leawood, Kansas and is a subsidiary of Chinese entertainment conglomerate Dalian Wanda Group, rose 4% Tuesday to $23.86. AMC operates nearly 5,000 screens in 348 locations.

Aron was looking for a new job after Starwood agreed in November to be bought by rival Marriott International in a $12.2 billion deal to create the largest hotel chain in the world. Marriott CEO Arne Sorenson will be CEO of the combined company. Aron is expected to give up his seat on the Starwood board after he joins AMC.

Aron is familiar with AMC, having served as a senior operating partner of its previous owner, Apollo Management, for nine years until 2015. Apollo was part of an investor group that sold AMC Theatres to Dalian Wanda for $2.6 billion, including debt, in 2012.

Aron has spent his entire executive career in hospitality, travel and entertainment businesses. Prior to joining Starwood in 2015, he was CEO and co-owner the NBA’s Philadelphia 76ers basketball team from 2011 to 2013. Previously, he was CEO of Vail Resorts and Norwegian Cruise Line.

“Adam’s background in producing results at traditional, consumer-driven, entertainment businesses makes him the person best positioned to lead AMC into the future,” said Jack Gao, an AMC board member and executive vice president of Wanda Movie Holding, a unit of Dalian Wanda.

“AMC Theatres is at the forefront of developing customer-focused innovations at theatres across the country, such as plush recliner chairs and new sight and sound technology," Aron said in a statement. "Even so, I believe we have the capacity to raise the bar even higher."

Follow Paste BN reporter Roger Yu on Twitter @RogerYu_.