Starwood Hotels & Resorts Sees Strong Signings Momentum, Led by New Hotel Deals in North America
NEW YORK - May 29, 2015 - (BUSINESS WIRE) - In advance of the 37th Annual NYU International Hospitality Industry Investment Conference, Starwood Hotels & Resorts Worldwide, Inc. (NYSE: HOT) today announced it has achieved its strongest first five months of the year for deal signings since 2008. Starwood continues to see balanced growth across its brands and around the world, with North America leading the charge, accounting for nearly 40% of new signings so far in 2015. Development highlights include a 30% increase in deal signings for Starwood’s Specialty Select brands, Aloft, Element and Four Points by Sheraton, which together account for more than three-quarters of North America signings year-to-date; a new developer-friendly vision for the Sheraton brand to be unveiled on June 1; and the launch of its 10th brand, Tribute Portfolio.
Adam Aron, CEO of Starwood Hotels & Resorts on an interim basis, said: “We are putting an even brighter spotlight on our world-class hotel brands as we work to accelerate the pace of our growth, better serve our guests, and offer more hotel options to more guests in more places than ever before.”
North America Growth Momentum Building in 2015
This year, Starwood will reach its 600th hotel milestone in North America, which remains the company’s largest market with its most hotels in the development pipeline. Starwood is on track to have its strongest openings year in North America since 2009 with 40% of its planned 2015 openings in the region. The company will open more hotels in Europe this year than it has in any year since 2006, and, in Asia Pacific, Starwood will surpass its 300th hotel milestone by year-end, more than tripling its portfolio in the region over the last decade.
Simon Turner, President of Global Development, Starwood Hotels & Resorts, said: “2015 is off to a strong start with Starwood outpacing the number of new hotel deal signings as compared to the last six years. We strive to be the partner of choice by delivering a differentiated guest experience and ensuring we have the most developer-friendly and flexible approach to maximize value for our owners’ assets.”
Allison Reid, Senior Vice President of North America Development, Starwood Hotels & Resorts, added: “We are continuing to see an uptick of new-build activity in North America. Meanwhile conversions remain a compelling part of our growth strategy, allowing us to bring existing hotel properties into the Starwood system, often at an accelerated pace. Conversions also allow owners to reposition assets and immediately benefit from our powerful sales and distribution network and global loyalty program to drive greater returns.”
Specialty Select Brands Lead Starwood’s Growth
Starwood is intensifying its efforts to grow its mid-market brands to meet the rising demand for strong global brands, with an innovative mindset, at an affordable price point in markets around the world. Together, Aloft, Four Points by Sheraton and Element topped 300 hotels worldwide earlier this year and continue to lead the company’s pipeline growth, accounting for nearly half of Starwood’s hotel openings last year. Across the three brands, Starwood has added 13 hotels so far in 2015, with more than 30 additional openings expected by year end.
Four Points by Sheraton is leading Starwood’s global pipeline growth and is on track to open its 200th hotel this year. Aloft, Starwood’s tech-forward incubator brand, is on the cusp of opening its 100th hotel worldwide with its strongest signing momentum in North America since 2008 and twice as many deals signed in North America as compared to this time last year. Element, Starwood’s eco-innovation lab, will open more hotels this year than ever in its history and is on track to nearly triple its global portfolio in the next three years due to increasing guest and owner demand.
Starwood Strengthens its Leading High-End Portfolio
With nearly 75% of its portfolio at the high-end, Starwood continues to build on its strong foothold and incredible global brand recognition in the luxury and upper upscale space.
On the luxury end, across The Luxury Collection and St. Regis brands, Starwood will open more hotels in 2015 than it has in any one year since 2001. The Luxury Collection, which boasts a portfolio of 95 hotels and resorts throughout the world, continues to convert hotels, including the recent addition of Sunset Key, 40 luxury cottages nestled off the coast of Key West, Florida, as well as invest in renovations such as the iconic Palace Hotel in San Francisco and the St. Anthony Hotel in San Antonio, Texas. The brand will add a number of new destinations to its portfolio this year including Lake Tahoe, Nevada; Chicago, Illinois; Nanjing, China; Kyoto, Japan; and Broumana, Lebanon.
Starwood’s legendary St. Regis brand, which delivers exceptional experiences at 34 luxury hotels and resorts in the best addresses around the world, recently opened its doors in Istanbul and is set to make debuts in Mumbai and Dubai by the end of this year.
Starwood’s category killer, W Hotels, the industry innovator with 46 hotels and retreats, including 17 hotels with W-branded residences in the most vibrant cities and exotic destinations around the world, will soon make its long-awaited debut in Amsterdam. With more than 15 years of proven success, W Hotels’ growth remains strong, with new hotels slated to open over the next three years in Dubai Al Habtoor City, Shanghai, Goa, Tel Aviv, Panama, Kuala Lumpur, Muscat, Bellevue, Suzhou, Chengdu, Abu Dhabi, Brisbane and Philadelphia.
Sheraton is on track to open more than 20 hotels this year with debuts in Chihuahua, Mexico and Hyderabad, India, and continues to be a leader in Starwood’s global pipeline. The brand’s growth in Asia Pacific remains strong, with approximately half of its new hotel openings in 2015, driven by continued demand across China. Sheraton is also extending its reach in Europe in sought-after destinations, such as Sheraton Lake Como Hotel, the brand’s eighth hotel in Italy. The brand will also enter Romania with the opening of Sheraton Bucharest, a strategic conversion in an ideal downtown location.
Westin, which crossed the 200th hotel milestone in 2014, will add another ten hotels to its portfolio in 2015. While more than half of its operating hotels are in the United States, Westin is experiencing phenomenal global demand, with more than 70% of the brand’s development pipeline outside of the U.S.
Following the recent openings of Le Méridien Suvarnabhumi, Bangkok Resort and Spa, Le Méridien Indianapolis, Le Méridien Thimphu (Bhutan), Le Méridien Columbus, The Joseph, Le Méridien Mahabaleshwar Resort & Spa (India), Le Méridien Gurgaon, Delhi NCR (India), and Le Méridien Saigon, Le Méridien will open nine additional hotels this year, nearly all in Asia Pacific, in destinations including Bangladesh, Bhutan, China and Malaysia. The brand will also debut in Denver in 2016.
New Tribute Portfolio Lets Owners “Stay Independent”
Starwood recently launched its tenth brand –Tribute Portfolio, giving owners the opportunity to join Starwood and leverage its powerful systems, while staying independent. Firmly anchored in the upper upscale category, Tribute Portfolio is off to a strong start with many new hotel deals underway around the world. Following the opening of Royal Palm South Beach Miami, a Tribute Portfolio Resort, Starwood has announced plans to introduce the brand to Asheville, North Carolina; Nashville, Tennessee; Savannah, Georgia; and Charleston, South Carolina.
About Starwood Hotels & Resorts Worldwide, Inc.
Starwood Hotels & Resorts Worldwide, Inc. is one of the leading hotel and leisure companies in the world with more than 1,200 properties in some 100 countries and over 180,000 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®, Element® and the recently introduced Tribute Portfolio™. 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 recently announced plans to spin off its Starwood Vacation Ownership, Inc. business, a premier provider of world-class vacation experiences through villa-style resorts and privileged access to Starwood brands, into a standalone public company by the end of 2015. For more information, please visit www.starwoodhotels.com.
SOURCE Starwood Hotels & Resorts Worldwide, Inc.
Starwood Hotels & Resorts