Starwood Anticipates Strong Year of Openings in North America
Tuesday January 28th, 2014 - 10:00AM BP
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LOS ANGELES—Starwood Hotels & Resorts Worldwide, Inc. announced at 2014 Americas Lodging Investment Summit (ALIS) here that it expects to open 30 new hotels by year’s end.
The company attributes its recent growth to a rapid proliferation of its Four Points by Sheraton and Aloft brands and a surge in conversions across several of its brands, including Le Méridien.
In 2013, Starwood opened 33 new hotels and signed 52 new hotel deals in North America, up 27% over signings the previous year and the most signed since before the global economic crisis.
“Starwood remains extremely bullish about its growth prospects in North America, which is still our largest market, comprising over 50% of our existing global portfolio,” stated Simon Turner, president of global development for Starwood Hotels & Resorts Worldwide, Inc. “We now have a total of 577 hotels in North America and expect record low supply and growing demand to continue driving growth.”
Allison Reid, SVP of North America Development for Starwood Hotels & Resorts Worldwide, Inc., stated, “Starwood will open about one-third of its new hotels in North America in 2014, reflecting the continued strength of our brands in this important market. Owners and developers are showing increased interest in conversions and new builds under one of Starwood’s brands in order to tap into Starwood’s powerful network, global booking platforms and loyal customer base.”
Starwood’s “specialty select” brands—Four Points by Sheraton, Aloft and Element—are leading Starwood’s growth in North America and account for approximately 75% of new hotel openings in the region in 2014. As a group, these brands have grown 80% globally since 2008 and are on track to surpass 200 hotels in North America this year.
Four Points by Sheraton signed nearly twice as many deals over the past five years in North America than any other Starwood brand. Four Points will open 12 new hotels in North America in 2014, nearly all conversions. The Aloft brand will surpass 60 hotels in North America this year. Aloft signed 16 new hotel deals in North America in 2013—the most of any Starwood brand in the region and the highest number since 2008.
Starwood’s portfolio of upper-upscale hotels under its Le Méridien, Westin and Sheraton flags are poised for another year of robust growth. In 2013, Le Méridien signed more hotels worldwide in one year since Starwood acquired the brand in 2005. In 2014, the brand expects to open more hotels worldwide in one year since the brand was acquired, including five openings in the U.S. with two adaptive re-use projects.
The Westin brand will reach its 200th milestone worldwide in 2014. Westin will open two new hotels this year in the United States.
Tags: Starwood Hotels • Hospitality • Brands • Openings •
The theme of this year’s ALIS conference was “Don’t Worry, Be Happy.” But, lets face it, there are always going to be some people who aren’t happy unless they are worried about something—whether it’s the Fed potentially raising interest rates or that the price of oil is now too low, threatening to cripple the economies of some foreign nations.