Starwood Hotels Anticipates Another Strong Year of Openings in North America
Global Hospitality Icon to Add Approximately 30 Hotels to Its North American Portfolio in 2014, Following 33 Openings in 2013
STAMFORD, Conn. - January 28, 2014 - (BUSINESS WIRE) - From the 2014 American Lodging Investment Summit in Los Angeles, Starwood Hotels & Resorts Worldwide, Inc. (NYSE:HOT) today announced that it expects another year of robust growth in North America with approximately 30 new hotels slated to open by year’s end, driven by the rapid proliferation of its Four Points by Sheraton and Aloft brands and a surge in conversions across several of its brands, including Le Méridien, which is experiencing strong development momentum. In 2013, Starwood opened 33 new hotels and signed 52 new hotel deals in North America, up 27% over signings the previous year and the most signed since before the global economic crisis.
"Starwood remains extremely bullish about its growth prospects in North America, which is still our largest market, comprising over 50% of our existing global portfolio," said Simon Turner, President of Global Development for Starwood Hotels & Resorts Worldwide, Inc. "We now have a total of 577 hotels in North America and expect record low supply and growing demand to continue driving growth."
"Starwood will open about one-third of its new hotels in North America in 2014, reflecting the continued strength of our brands in this important market," said Allison Reid, Senior Vice President of North America Development for Starwood Hotels & Resorts Worldwide, Inc. "Owners and developers are showing increased interest in conversions and new builds under one of Starwood’s brands in order to tap into Starwood’s powerful network, global booking platforms and loyal customer base."
Starwood’s Specialty Select Brands are Driving Starwood’s Growth in North America
Starwood’s "Specialty Select" brands – Four Points by Sheraton, Aloft and Element – are leading Starwood’s growth in North America and account for approximately 75% of new hotel openings in the region in 2014. As a group, these brands have grown 80% globally since 2008 and are on track to surpass 200 hotels in North America this year.
Four Points by Sheraton signed nearly twice as many deals over the past five years in North America than any other Starwood brand. Fueled by its successful positioning emphasizing uncomplicated comfort and timeless style, Four Points will open 12 new hotels in North America in 2014, nearly all conversions. Key 2014 openings include the first Four Points in Charleston, West Virginia; Phoenix, Arizona; and Surrey, British Columbia; as well as its second in Nashville, Tennessee and the fourth in Manhattan. Boasting the second largest global pipeline among all of Starwood brands, Four Points by Sheraton will open its 200th hotel worldwide this year as it nears its 125th milestone in North America.
Starwood’s stylish Aloft brand will surpass 60 hotels in North America this year. Aloft signed 16 new hotel deals in North America in 2013 – the most of any Starwood brand in the region and the highest number since 2008. While the majority of Aloft hotels coming online are new builds, the brand is also attracting a growing number of adaptive re-use projects and conversions. This year, Aloft will enter numerous new markets with eight new hotel openings in North America including two more adaptive re-use projects, Aloft Tampa Downtown and Aloft Detroit, and two conversions, Aloft Atlanta Downtown and Aloft Calgary University. Other key openings will include Aloft Oklahoma City Downtown – Bricktown, Aloft Buffalo Airport, Aloft Denver Downtown, and Aloft Manhattan Downtown – Financial District.
Element, Starwood’s trailblazing, eco-wise brand, is picking up momentum with three openings planned for North America this year in Harrison, New Jersey; Hanover, New Hampshire; and Fargo, North Dakota, plus its first in Europe in Frankfurt, Germany. Element will open its 15th hotel in North America in 2015 including its first in Orlando, second in the Miami metropolitan area, and second in Canada – Element Vancouver Metrotown. In 2016, the brand will add two more hotels in Canada.
Upper Upscale and Luxury Brands Enjoy Strong Position and Sustained Growth
Starwood’s robust portfolio of upper-upscale hotels under its Le Méridien, Westin and Sheraton flags are poised for another year of robust growth. In 2013, Le Méridien signed more hotels worldwide in one year since Starwood acquired the brand in 2005, driven by accelerating demand in North America. In 2014, the brand expects to open more hotels worldwide in one year since the brand was acquired, including five openings in the United States with two adaptive re-use projects, Le Méridien Tampa and Le Méridien Chicago-Oakbrook Center. Le Méridien will also launch a brand-new lifestyle development in Columbus, Ohio and open two conversions this year: Le Méridien Indianapolis, which has transformed a historic downtown hotel, and Le Méridien Charlotte, part of a dual-hotel development along with the already opened Sheraton Charlotte Hotel.
Starwood’s Westin brand, known for the resounding success of its wellness positioning, will reach its 200th milestone worldwide in 2014. Westin will open two new hotels this year in the United States: The Westin Wilmington on the city’s revitalized waterfront, and The Westin Cleveland Downtown. In 2015, the brand will reach the 125th hotel milestone in North America with openings planned for Denver, CO; Bethesda, MD; Austin, TX; San Jose, CA; Jackson, MS; and Jekyll Island, GA.
Sheraton, Starwood’s largest brand, will return to the Dominican Republic this year with the opening of Sheraton Santo Domingo. The global hotel icon opened five conversion properties and signed seven deals in North America in 2013. Of those deals, four were conversion properties that opened within the year.
Starwood continues to lead the luxury segment globally and boasts one of the strongest North American luxury portfolios in the industry under its St. Regis, W Hotels and Luxury Collection brands. This year, Starwood will open The St. Anthony, A Luxury Collection Hotel, San Antonio, an external conversion and the company’s fourth luxury property and first Luxury Collection property in Texas. In 2013, St. Regis Hotels unveiled its newly refurbished brand flagship, The St. Regis New York, while W Hotels completed renovations at W New York – Union Square and W Dallas.
About Starwood Hotels & Resorts Worldwide, Inc.
Starwood Hotels & Resorts Worldwide, Inc. is one of the leading hotel and leisure companies in the world with nearly 1,200 properties in 100 countries, and 171,000 employees at its owned and managed properties. Starwood is a fully integrated owner, operator and franchisor of hotels, resorts and residences with the following internationally renowned brands: St. Regis®, The Luxury Collection®, W®, Westin®, Le Méridien®, Sheraton®, Four Points® by Sheraton, Aloft®, and Element®SM. The Company boasts one of the industry’s leading loyalty programs, Starwood Preferred Guest (SPG), allowing members to earn and redeem points for room stays, room upgrades and flights, with no blackout dates. Starwood also owns Starwood Vacation Ownership, Inc., a premier provider of world-class vacation experiences through villa-style resorts and privileged access to Starwood brands. For more information, please visit www.starwoodhotels.com.
(Note: This press release contains forward-looking statements within the meaning of federal securities regulations. Forward-looking statements are not guarantees of future performance or events and involve risks and uncertainties and other factors that may cause actual results or events to differ materially from those anticipated at the time the forward-looking statements are made. These risks and uncertainties are presented in detail in our filings with the Securities and Exchange Commission. Although we believe the expectations reflected in such forward-looking statements are based upon reasonable assumptions, we can give no assurance that our expectations will be attained or that results and events will not materially differ. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.)
SOURCE Starwood Hotels & Resorts Worldwide, Inc.
Starwood Hotels & Resorts Worldwide, Inc.