From
now until April 5th, Starwood President & CEO Frits van Paasschen
and the company's top executives will conduct day-to-day business
from Dubai, an increasingly important global destination and travel
hub. Following the company's successful relocation to China in June
2011, this second leadership move reflects Starwood's innovative
management approach to cultivating a more global culture by
understanding, appreciating and leveraging different societal
perspectives and approaches to business and hospitality.
"With
80 percent of Starwood's pipeline coming from rapidly growing
markets, it is simply not possible to lead a truly global business
from a boardroom in Connecticut," said van Paasschen. "Rising
wealth and ever greater global connectivity are creating a
once-in-a-lifetime growth opportunity for our business - by fueling
new demand, changing travel patterns, and entirely new travel
markets. Dubai epitomizes this changing face of travel, and we expect
this relocation will deepen our relationships with partners,
associates and customers. Just as with our one-month relocation to
China in 2011, our time in-market will spark new ideas that will
fortify our position as the most global high-end hotel company."
During
the course of the relocation, more than 200 Starwood executives and
GMs from the U.S., Europe, Asia and Latin America will travel to
Dubai as the company runs day-to-day operations almost 7,000 miles
and a nine-hour time zone away from its usual HQ outside New York
City. The team will meet with associates, customers, owners and
prospective developers in the UAE and also take advantage of Dubai's
location for business travel to destinations including Mumbai, Addis
Ababa, Jeddah, Dushanbe and Kuwait.
Dubai
Illustrative of "New Golden Age of Travel"
Dubai
is a natural choice for Starwood's second month-long senior
leadership relocation as the city is situated eight hours from
two-thirds of the world's population and is a global gateway at the
crossroads of East and West and the developed and rapidly growing
economies. The Middle East continues to evolve as an international
business and leisure travel hub with Dubai now home to many
multinational corporations, consultants, banks and university
campuses. In 2012, Dubai International Airport counted approximately
58 million visitors, a number which is expected to grow at annual
rates above ten percent, and the airport is expected to be the
world's largest in terms of international passenger traffic by 2015.
"Globalization
is accelerating new trade patterns, capital flows and wealth
creation: this translates to more people from more places traveling
to more destinations than ever before," said van Paasschen. "We
are on the cusp of a new Golden Age of Travel, and Dubai is at the
epicenter of this sea change."
Along
with changing travel patterns, Starwood has seen a significant
increase in demand for luxury in all corners of the world, including
the Middle East. As the most global high-end hotel company with
nearly twice as many rooms as Marriott or Hilton in emerging markets,
Starwood is uniquely positioned to capitalize on the record number of
people entering the ranks of the very wealthy and developing a taste
for luxury.
With
the opening of W Doha in 2009, Starwood introduced a new luxury hotel
category in the Middle East, and plans are underway to open new W
hotels in Amman, Muscat, and Abu Dhabi as well as two W properties in
Dubai. Following the W brand's debut, Starwood introduced its St.
Regis brand into the Middle East with the 2011 opening of The St.
Regis Saadiyat Island Resort (Abu Dhabi). St. Regis has since opened
in Doha and will this year unveil a second St. Regis hotel in Abu
Dhabi, located on the Corniche. Future St. Regis openings in the
region include The St. Regis Cairo, The St. Regis Amman, and The St.
Regis Dubai. Starwood also continues to grow its Luxury Collection
brand in the UAE and will debut in the Emirate of Ajman in 2014.
Diverse
Viewpoints Needed to Succeed Globally
Starwood's
roots in the Middle East date back nearly 50 years. This first-mover
advantage has put Starwood in a leadership position in the region,
with 45 hotels and another 30 under development. In Dubai alone,
Starwood has 14 hotels and another six in the pipeline. That makes
Dubai Starwood's second largest market in the world behind New York
City. The company's Middle East footprint is set to grow by about 70
percent over the next five years thanks to Starwood's brand strength,
local know-how and long-standing relationships.
"Working
day-to-day in a different market allows you to see the world through
a different lens," said van Paasschen. "The insights that
come from experiences like this move make us more agile in today's
rapidly changing world. As a company, we make better and faster
decisions thanks to the diverse viewpoints of our leaders and
associates. These trips allow us to listen firsthand to what our
associates around the world have to say."
