Starwood
Hotels & Resorts Worldwide, Inc. is strengthening its position as
the leading hotel operator across the Middle East and Africa (MEA)
region with an existing portfolio of
82 hotels, representing nearly 22,000 guest rooms, the majority of
which are operated under Starwood's world-renowned Sheraton and Le
Méridien brands.
The
company announced today that it will increase its MEA portfolio by
more than 60% with nearly 50 new hotels set to open over the next
five years, adding more than 14,000 guest rooms to the region while
creating thousands of local employment opportunities. With over 20
hotels expected to open by the end of 2015, Starwood is on track to
reach a milestone 100 hotels across MEA. Further underscoring the
importance of the region as one of Starwood's fastest growing hotel
and travel markets, earlier this month the company relocated its
global headquarters from Stamford, Connecticut to Dubai for a
month-long immersion.
"Starwood
continues to see demand for growth of all of our brands across the
Middle East and Africa despite economic and political uncertainty in
some parts of this incredibly diverse region," said Frits
van Paasschen, President and CEO, Starwood Hotels & Resorts.
"Rapid economic growth, rising personal incomes, a growing
middle class and ever greater global connectivity are driving new
travel patterns and demand for travel, and this region is at the
center of these trends and a key focus of our growth strategy."
With
more than 70% of the world's economic growth coming from fast-growing
markets over the next few years, Starwood is focused on expansion in
developing MEA markets such as the United Arab Emirates (UAE), Saudi
Arabia, Algeria, Egypt, Senegal, South Africa and Nigeria. The
company is also focused on growth opportunities in key emerging
markets including Iraq, Pakistan, Angola, Ghana, the Ivory Coast and
East Africa.
By
2017, Starwood will operate more than 130 hotels in MEA, marking some
key milestones, including:
• Portfolio growth
of over 60% in the UAE with 12 new hotels, including six in Dubai,
bringing Starwood'sportfolio to more than 30 hotels across the
country. Starwood's growth plans in the UAE also include expansion
into Sharjah and Ajman.
•
Rapid
expansion across Saudi Arabia with six new hotels slated to open by
2015 bringing Starwood's portfolioto 15 hotels in this key
developing market.
•
The
re-entry of Starwood into Iraq with the milestone signings of three
hotels across three brands in the city of Erbil, located in the
re-emerging Kurdistan area of the country.
•
Momentum
in Nigeria with two new Starwood hotels, under the company's Four
Points by Sheraton brand.
•
Addition
of two new hotels in Algeria with a new Sheraton hotel in Annaba and
Four Points by Sheraton in Oran.
•
The
launch of Starwood's Aloft Hotels brand in Saudi Arabia and Iraq.
Aloft will also open its second property in the UAE in the emirate of
Sharjah.
Starwood
Strengthens Luxury Portfolio
In
2011, Starwood introduced its ultra-luxury St. Regis Hotels &
Resorts brand in the region with the opening of The St. Regis
Saadiyat Island in Abu Dhabi. This was followed by last year's debuts
of The St. Regis Doha and The St. Regis Mauritius, marking the entry
of the brand into Qatar and Africa. This year, Starwood will unveil a
second St. Regis hotel on Abu Dhabi's vibrant Corniche, making it the
only city in the world to boast two St. Regis hotels. The brand will
soon enter the Egyptian market with the opening of The St. Regis
Cairo.
Starwood
is also seeing rapid growth of its contemporary, design-led W Hotels
brand. Following the successful launch of the brand in the region
with the opening of W Doha in 2009, Starwood has plans to open six
more W Hotels across MEA in key markets, including three in Dubai and
one each in Abu Dhabi, Muscat and Amman by 2017.
"Our
long-established presence, local teams, and strong relationships in
the region remain a competitive advantage, and position us well to
take advantage of the many opportunities for future growth,"
said Simon Turner, President of Global Development & Acquisition,
Starwood Hotels & Resorts. "We have a healthy pipeline of
new hotels under development in the Middle East and Africa, and
expect our growth to continue in 2013 as we look to expand in markets
including the UAE, Saudi Arabia and Nigeria.
Conversion
Opportunities in MEA
In
addition to new hotel openings, Starwood is seeing increasing
opportunities for hotel conversions in MEA. In the past ten months,
Starwood has signed three conversion deals in the region, including
Sheraton Dubai Mall of the Emirates, which opened last month.
"Thanks
to Starwood's nearly 50 year history in the MEA region and the proven
strength of our brands, the company is well positioned to take full
advantage of growth," said Roeland Vos, President of Starwood
Hotels & Resorts, Europe, Africa & Middle East. "We are
seeing a large landscape of independent hotels ripe for flags in the
region and we expect to capture more than our fair share of
conversion opportunities across all of our brands. The recent
conversion of the Sheraton Dubai Mall of the Emirates is a testament
of this strategy."
As
Starwood continues its extensive expansion across MEA, the company is
also focused on upgrading its existingportfolio of hotels in the
region, primarily under the Sheraton and Le Méridien brands.
Starwood
Relocates Global Headquarters to Dubai
Earlier
this month, Starwood President & CEO Frits van Paasschen and the
company's top executives relocated to Dubai where they have been
conducting day-to-day business from this 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% 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. "Dubai epitomizes the
changing face of travel, and we expect this relocation will deepen
our relationships with partners, associates and customers. The
insights that come from experiences like this move make us more agile
in today's rapidly changing world."
