The HVS Executive Search annual review of corporate governance practices at European hotel companies sees Whitbread take top honours.

2009 was not an easy year for anyone. Across Europe, the hotel industry saw operators slashing room rates and desperately trying to replace the sudden absence of corporate demand with leisure guests. New supply was still entering the market and major currency fluctuations added to the complexity of the problem.

Challenges aside, hotel companies learned how to re-focus on some of the fundamentals of the business: controlling and containing costs and expenses. Some companies went through major restructurings and others saw the weakness of their competitors as a chance to grow their market share.

Being able to steer a company through an ever-changing business environment with certainty and confidence is a vital key to success; and it is the board of directors' responsibility to oversee the strategies which provide the direction for the company. Sound corporate governance is, now more than ever, of utmost importance.

HVS Executive Search reviewed 21 publicly listed European hotel companies. Studying the firms' annual reports and, where necessary, conducting interviews, the companies were scored on their performance in four key categories:

• Size, makeup and independence of the board
• Committee structure and effectiveness
• Presence of interlocks, insider participation and related transactions
• Commitment to pay-for-performance for executives and director pay

For a third year in a row, the same three companies have dominated the top of our scoring. Folow the link below for a full report on the survey and results:

www.hvs.com/emails/execsearch/102810/HVSEuropeCorporateGovernanc%20Review2009.pdf

About Christopher J Mumford
Chris Mumford is Managing Director of HVS Executive Search in London and specializes in executive search and compensation consulting for clients in the hospitality industry throughout Europe, the Middle East and Africa. A regular speaker on hospitality related issues, Chris is a frequent contributor to a number of industry publications on executive selection, compensation trends, leadership and general Human Resources topics.

About Thomas Mielke
Thomas Mielke is a Senior Associate at HVS Executive Search in London. Since joining the firm in 2008, Thomas has worked on assignments across the EMEA region and has successfully placed senior executives at leading hospitality companies including Starwood Hotels & Resorts, Hilton Worldwide and Invesco Real Estate. Thomas has assisted clients with searches ranging in functional expertise from real estate and asset management to technical services and brand management. He is the co-author of HVS's annual European Corporate Governance Study and also helped institute HVS's annual review of CEO turnover at the 50 largest hotel companies in the world. Prior to joining HVS, Thomas spent several years working in Germany and Spain, including with Jones Lang LaSalle focusing on hotel market studies and research publications. Born in Spain and of Swiss-German origins, Thomas is fluent in German, Spanish, French and English. He graduated from Ecole hôtelière de Lausanne and holds a Bachelor of Science in International Hospitality Management with a specialisation in Resort and Leisure Development.