Starwood Accelerates Growth in North America
Company Achieves 5th Consecutive Year of Increased Signings in North America with 92 New Deals
Surpasses 600th Hotel Milestone with 43 New Openings in 2015
STAMFORD, Conn. - January 25, 2016 - (BUSINESS WIRE) - From the 2016 American Lodging Investment Summit in Los Angeles, Starwood Hotels & Resorts Worldwide, Inc. (NYSE:HOT) today announced strong continued growth in North America, following its 5th consecutive year of increased signings with 92 new hotel deals in 2015, an increase of 44 percent over the previous year. During 2015, the company also opened 43 new hotels, nearly double the 2014 number.
“Our strong growth in North America played a significant part in Starwood’s record-breaking growth last year, fueled by notable increases across our brand portfolio, particularly our select service and our luxury brands,” said Simon Turner, President of Global Development for Starwood Hotels & Resorts Worldwide, Inc. “North America remains an extremely important market for the company, with 55% of our existing portfolio and one third of our global pipeline, and we see continued growth momentum across all of our brands in 2016.”
“We are thrilled with the balanced growth we achieved in 2015, which grew our pipeline in North America by over 30 percent,” said Allison Reid, Senior Vice President of North America Development for Starwood Hotels & Resorts Worldwide, Inc. “The number of conversions we signed last year was up significantly and new build activity also increased. Owners and developers are showing continued strong interest in Starwood’s brands, powerful network, global booking platforms and loyal customer base.”
Growth of Starwood’s Specialty Select Brands Continues to Soar with More than 100 Hotels in the Pipeline
Starwood’s tech-forward Aloft brand, representing Starwood’s largest pipeline in North America, led the company’s growth this year as it continues to turn heads and meet the needs of today’s hyper-connected global traveler. Aloft remains one of the fastest growing hotel brands with 10 openings in 2015 and 9 more slated for 2016 in North America. Element Hotels opened five hotels in 2015 and continues to see significant expansion opportunities as demand grows for the smart, sustainable brand. On track to more than double its North America portfolio in the next three years, Element will open more than 20 hotels across the U.S. and Canada by year end 2018. Known for its universal appeal and flexible development options, Four Points also continues to expand with plans to open this year in key markets like New York, San Diego and Dallas Fort Worth, in addition to markets throughout Canada such as Sherwood, Alberta and Barrie, Ontario.
Demand is also on the rise for dual-branded hotel developments featuring Starwood’s Aloft and Element brands in key metropolitan markets across North America. Aloft and Element hotel projects will debut in Austin, Boston, Redmond, Wash., Columbus, Ohio, Dallas Love Field, and Charleston, S.C. in the next three years.
High-End Brands Continue to Differentiate Starwood and Fuel Growth in Key North America Markets
Starwood remained one of the few major hotel companies to increase its luxury pipeline with 11 new hotel deals in 2015 across the St. Regis, The Luxury Collection and W Hotels brands, doubling the company’s luxury pipeline in North America in just 12 months. St. Regis continues to build on its more than 100 year heritage since opening in New York City in 1904, while the industry’s largest luxury brand, The Luxury Collection, is renovating and converting renowned hotels throughout the U.S. to meet rising domestic demand for high-end accommodations, including the Cal Neva resort on Lake Tahoe and The Liberty in Boston. The brand will also make its long-awaited arrival in Napa Valley’s idyllic St. Helena in 2016. W Hotels, the category killer in the lifestyle space, was a standout in 2015, tripling its executed pipeline through 2019 with notable signings in Aspen, Las Vegas, Philadelphia, Bellevue and Downtown Los Angeles. The brand continues to break ground in high-barrier to entry markets, with development already under way to open 6 more hotels in North America by 2020.
Starwood’s upper upscale brands, Sheraton, Westin, Le Meridien and Tribute Portfolio, more than doubled their number of openings and quadrupled the number of new rooms added compared to the previous year. In its launch year, Tribute Portfolio far exceeded company expectations, adding 11 new hotels (signed and opened) or more than 3,500 rooms. The Westin brand has 15 hotels in the pipeline and has opened five hotels this past year, while Le Méridien continues to aggressively invest in its growing portfolio with a recent debut in Columbus, Ohio and new signings in Downtown Houston, TX, and Orlando, FL at Universal Blvd. At the same time, The Sheraton brand welcomed the Sheraton Phoenix Downtown Hotel and the Sheraton Chicago Hotel & Towers as Sheraton Grand properties, one of many initiatives under way for Sheraton 2020, a comprehensive 10-point plan designed to solidify Sheraton as a leading global hotel brand of choice, everywhere.
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 1,270 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 under the renowned brands: St. Regis®, The Luxury Collection®, W®, Westin®, Le Méridien®, Sheraton®, Tribute Portfolio™, Four Points® by Sheraton, Aloft®, Element®, along with an expanded partnership with Design Hotels™. The Company also boasts one of the industry’s leading loyalty programs, Starwood Preferred Guest (SPG®). Visit www.starwoodhotels.com for more information and stay connected @starwoodbuzz on Twitter and Instagram and facebook.com/Starwood.
Note: This press release contains forward-looking statements within the meaning of federal securities regulations. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties and other factors that may cause actual results to differ materially from those anticipated at the time the forward-looking statements are made. Further results, performance and achievements may be affected by general economic conditions including the impact of war and terrorist activity, natural disasters, business and financing conditions (including the condition of credit markets in the U.S. and internationally), foreign exchange fluctuations, cyclicality of the real estate (including residential) and the hotel and vacation ownership businesses, operating risks associated with the hotel, vacation ownership and residential businesses, relationships with associates and labor unions, customers and property owners, the impact of the internet reservation channels, our reliance on technology, domestic and international political and geopolitical conditions, competition, governmental and regulatory actions (including the impact of changes in U.S. and foreign tax laws and their interpretation), travelers’ fears of exposure to contagious diseases, risk associated with the level of our indebtedness, risk associated with potential acquisitions and dispositions and the introduction of new brand concepts and other risks and uncertainties. These risks and uncertainties are presented in detail in our filings with the Securities and Exchange Commission. There can be no assurance as to the development of future hotels in the Company’s pipeline or additional vacation ownership units. Although we believe the expectations reflected in forward-looking statements are based upon reasonable assumptions, we can give no assurance that our expectations will be attained or that results 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 Media
Starwood Hotels & Resorts Media