Growth Continues Across Luxury, Upper Upscale and Mid-Market Brands throughout the World
STAMFORD, Conn., Jan. 11, 2013 /PRNewswire/ -- Starwood Hotels & Resorts Worldwide, Inc. (NYSE: HOT) today announced that, building on its 2012 momentum with the most hotel deals signed since before the global economic crisis, it anticipates a strong year of openings and new hotel agreements signings in 2013. 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 hotel rooms 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 increasing number 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 Meridien. 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 Meridien is benefiting from growing brand recognition and deal signing momentum around the world. Planned 2013 openings include: Le Meridien Dallas, Le Meridien Atlanta Perimeter, The Stoneleigh (U.S.); Le Meridien Zhengzhou (China); Le Meridien Saigon (Vietnam); Le Meridien Dhaka (Bangladesh); Le Meridien Cairo Airport (Egypt); Le Meridien Mahabaleshwar Resort & Spa (India) and Le Meridien 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 175th hotel 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.
About Starwood Hotels & Resorts Worldwide, Inc.
Starwood Hotels & Resorts Worldwide, Inc. is one of the leading hotel and leisure companies in the world with 1,134 properties in nearly 100 countries and 154,000 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 Meridien®, Sheraton®, Four Points® by Sheraton, Aloft®, and ElementSM. 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 also owns Starwood Vacation Ownership, Inc., a premier provider of world-class vacation experiences through villa-style resorts and privileged access to Starwood brands. For more information, please visit www.starwoodhotels.com.
(Note: This press release contains forward-looking statements within the meaning of federal securities regulations. Forward-looking statements are not guarantees of future performance or events and involve risks and uncertainties and other factors that may cause actual results or events to differ materially from those anticipated at the time the forward-looking statements are made. These risks and uncertainties are presented in detail in our filings with the Securities and Exchange Commission. Although we believe the expectations reflected in such forward-looking statements are based upon reasonable assumptions, we can give no assurance that our expectations will be attained or that results and events 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.)
