Starwood Hotels & Resorts to Expand European Portolio by 40%
Tuesday March 4th, 2014 - 10:40AM BVPG
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BERLIN—From the International Hotel Investment Forum (IHIF) here, Starwood Hotels & Resorts Worldwide, Inc. today announced plans to open more than 60 new hotels and resorts across Europe by 2020, increasing its current European hotel portfolio by nearly 40%.
Starwood will open nine new hotels in Europe this year, primarily in fast-growing markets such as Turkey, Russia and the Commonwealth of Independent States (CIS).
Simon Turner, President of Global Development for Starwood Hotels & Resorts, said in a statement, “We are seeing rising demand for development in both established and rapidly growing markets across Europe, fuelled by strong interest in our globally recognized and admired brands and the ability to tap into Starwood’s strong distribution network and loyalty program."
He added, "The surge in infrastructure development in markets such as Turkey and Russia and the success of our mid-market brands across the continent have created favorable conditions for the expansion of all of our brands across Europe over the next several years.”
Following the opening of three new hotels in Turkey in 2013, Starwood will open an additional four properties in the country, including The St. Regis Istanbul later this year, followed by Four Points by Sheraton Istanbul and two new Sheraton hotels in Samsun and Istanbul. The newly signed Sheraton Istanbul Atasehir will feature 160 guestrooms with scenic views of the Marmara Sea and the city.
Deal-signing Pace in Europe Back to Pre-crisis Levels
In 2013, Starwood signed 12 new hotel management and franchise agreements in Europe, maintaining the company’s 2007 deal signing pace. The company opened seven hotels in Europe last year, adding approximately 1,200 rooms in five countries while expanding its footprint across the continent with 80% of this growth in developing markets.
In addition to Turkey, Starwood is maintaining strong growth momentum in Russia and the CIS countries where it is poised to triple its portfolio over the next three years, with 12 new hotels. These openings include the debut of Aloft and The Luxury Collection in Ukraine, the company’s entrance into Tajikistan and Kazakhstan, plus seven additional hotels in Russia—in Moscow and St. Petersburg as well as secondary and tertiary cities, including Kaluga, Perm, Krasnodar and Rostov-on-Don.
Mid-Market Brand Portfolio to Double by 2016
Starwood’s mid-market brands—Four Points by Sheraton, Aloft Hotels and Element—continue to enjoy strong growth in Europe with 12 hotels currently under development, which will double the mid-market portfolio by 2016. Among future hotel openings are three new mid-market hotels in Germany, including the European debut of the Element brand at Frankfurt Airport. Aloft is seeing marked growth in Europe with plans to enter new markets such as Liverpool, Munich, Stuttgart, St. Petersburg, Kiev and Amsterdam.
Luxury Brands Maintain Upward Momentum for Starwood
Starwood will continue to grow its luxury brands in Europe, where it operates nearly 50 hotels under the St. Regis, W Hotels and Luxury Collection brands. The company has five new luxury hotels under development in Europe, including W Hotels in Amsterdam, Milan and Tel Aviv, The St. Regis Istanbul and the addition of Hotel Bristol, a Luxury Collection Hotel in Odessa (Ukraine). Starwood is in advanced discussions for five additional luxury hotels on the continent.
Tags: Starwood • Hospitality • Brands • Construction/Renovation • Openings • Trade Shows •
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