Over
the last five years, Starwood has cultivated a quality pipeline of
new hotels with well-capitalized, experienced owners for
continued growth around the globe.
“Rising
wealth, increasingly global businesses and a digitally connected
world are creating unprecedented demand for travel and new travel
patterns, and we continue to be as bullish as ever about our
long-term growth,” said Frits van Paasschen, President and CEO.
“Whether it’s manufacturing in Vietnam, mineral resources from
Nigeria, or outbound tourism from Brazil, Russia, India or China,
globalization is spurring economic development and creating many
exciting expansion opportunities
for our business.”
Simon
Turner, President of Global Development, said: “After a strong year
in 2012 of openings, deal signings and increased owner interest in
development, we are entering 2013 well-positioned for continued
footprint growth in both emerging and developed markets. Our
long-established global presence remains a competitive advantage, and
our local teams provide know-how and strong relationships paving the
way for future growth and the continued expansion of our nine brands.
In 2012, Starwood signed a total of 131 new hotel management
and franchise agreements which represented an increase of
17 percent over 2011 signings levels, including 31 conversions, 12 of
which opened during 2012.”
Consistent
with macroeconomic growth trends, nearly two –thirds of Starwood’s
new hotels in 2013 will open in fast-growing markets.
Starwood plans to open its first property in Tajikistan, while also
expanding further in such important markets as Peru, Brazil, Mexico,
Panama, Malaysia, Singapore,
Thailand, Vietnam, Bangladesh, Hungary, Turkey and Saudi Arabia, as
well as perennial growth markets like China and India. The company
will also continue to focus on identifying the right partners for
continued development in Brazil, Russia and throughout sub-Saharan
Africa. Asia remains a high
priority market for Starwood, accounting for
approximately one quarter of Starwood’s existing hotelrooms
and over half of Starwood’s pipeline.
Mr.
van Paasschen, added: “Our owners are uniquely positioned to
benefit from Starwood’s global presence, scale, powerful systems
and strong, growing base of loyal
customers around the world. As part of our
balanced approach to development, we are also seeing significant
opportunities in established markets where conversion momentum
continues, and record low supply and growing demand are driving
growth.”
Starwood
continues to build on its established presence in mature markets and
to see strong interest in conversions for growth in developed markets
such as North America. The company expects to see increased
conversion momentum in 2013 in Asia Pacific, Latin America and
Europe.
Starwood
to Lengthen Luxury Lead in 2013
Starwood
continues to lengthen its lead in the luxury space with over 150
properties in its luxury portfolio under the St. Regis, Luxury
Collection and W Hotels brands, and remains uniquely
positioned to capitalize on the increasingnumber
of people around the world developing the means and appetite for
luxury travel. Over the past five years, Starwood nearly doubled its
global luxury footprint. Fifteen percent of Starwood’s pipeline of
new hotels are in its luxury portfolio, including an
impressive pipeline in Asia Pacific and many conversion opportunities
that exist around the world as independent, boutique hotels look
to benefit as part of the Starwood system.
In
2013, Starwood will celebrate the opening of The St. Regis Abu Dhabi
and the re-openings of two luxury icons and members of the Luxury
Collection, the Gritti Palace and Prince de Galles, after
significant, multi-million dollar restorations. New openings for the
Luxury Collection include: The Castle Hotel, Dalian (China);
Vana Belle, Koh Samui (Thailand); and Palacio del Inka (Peru).
Starwood will open its first W Hotel in mainland China with
W Guangzhou and the first W alpine ski
resort with W Verbier (Switzerland).
Upper
Upscale Brands Continue to Fuel Global Growth
2013
will be a strong year for Starwood’s upper upscale brands,
Sheraton, Westin and Le Méridien. Sheraton, the global hospitality
icon which has been a first mover into many new markets around the
world, will continue to fuel Starwood’s growth with nearly 20
planned openings in 2013, a historic number of openings as the brand
moves towards its milestone 500th opening in 2015. Sheraton remains a
leader in China with 57 hotels now operating and another 9
expected in 2013.
Westin
is also experiencing meaningful growth around the world and expects
to open its 200th hotel this year. Expected openings for
2013 include The Westin Birmingham (U.S.); The Westin Chennai
Velachery (India); The Westin Houston Downtown (U.S.); The Westin
Haikou (China); The Westin Sanya Haitang Bay Resort (China); The
Westin San Jose (U.S.); The Westin Chongqing Liberation Square
(China); The Westin Qingdao (China) and The Westin Singapore Marina
Bay (Singapore). After a significant investment in its hotels,
Le Méridien is benefiting from growing brand recognition and deal
signing momentum around the world. Planned 2013 openings include: Le
Méridien Dallas, The Stoneleigh (U.S.); Le Méridien Atlanta
Perimeter (U.S.); Le Méridien Zhengzhou (China); Le Méridien Saigon
(Vietnam); Le Méridien Dhaka (Bangladesh); Le Méridien Cairo
Airport (Egypt); Le Méridien Mahabaleshwar Resort & Spa (India)
and Le Méridien Jiaonan Resort (China).
Long
Runway to Grow Mid-Market Brands Globally
Building
on significant deal signing momentum in 2012 and the most room
openings since 2009, Starwood’s mid-market portfolio, which
includes Aloft, Element and Four Points by Sheraton, has grown over
60 percent since 2009 reflecting the brands’ worldwide appeal. This
is a direct benefit from Starwood’s longstanding tenure and teams
in key global markets where there are significant growth prospects -
particularly in secondary and tertiary markets – and meaningful
guest, customer and owner appetite for affordable and reliable
global hotel brands. Starwood will open its 250th
mid-market hotel this year. The three brands account for
approximately one third of the company’s global development
pipeline and nearly 45 percent of expected hotel openings
worldwide in 2013.
Four
Points, which represented over a quarter of Starwood’s openings and
signings last year, is set to open its 175thhotel and is
expected to sign more deals in 2013 than ever before in company’s
history, driving growth throughout the world. Aloft is also being
fueled by great global momentum, and plans to grow its portfolio by
nearly 30 percent in 2013, and celebrate its 75th hotel, driven
heavily by openings in China, North America and India. The brand is
benefiting from a desire for design-centric, hotel brands
around the world at an affordable price. Aloft is growing through an
increased number of conversions, and will debut in Panama, Malaysia
and Turkey during the year. Element will open its first hotel outside
of the United States with its debut in Canada this summer followed by
the brand’s debut in Europe in 2014.
