The Luxury Collection Invests $300M to Enhance North American Portfolio

NEW YORK—The Luxury Collection, in coordination with its owner partners, plans to invest $300 million into an effort to expand and improve its hotel portfolio in North America.

Part of Starwood Hotels & Resorts, The Luxury Collection is investing in hotel conversions and landmark renovations in diverse U.S. destinations, including Key West, Lake Tahoe, San Antonio and San Francisco, as it continues to grow around the world. The Luxury Collection is on track to surpass 100 hotels in more than 30 countries by the end of 2015.

“As we look to accelerate Starwood’s growth, we are shining an ever brighter spotlight on our world-class hotel brands to further incite innovation and create compelling guest experiences,” said Adam Aron, CEO of Starwood Hotels & Resorts on an interim basis. “We fully recognize the enormous untapped potential of The Luxury Collection, and with these new hotel openings and impressive renovations, Starwood is setting out for The Luxury Collection to become the world’s largest luxury hotel brand by year’s end.”

“Domestic demand for luxury travel is at pre-recession levels, which makes this an excellent time to invest in The Luxury Collection hotels in the U.S.,” said Hoyt H. Harper II, global brand leader, The Luxury Collection Hotels & Resorts.

He added, “We continue to see increasing demand from owners of independent luxury hotels who find tremendous value in partnering with Starwood to take advantage of our powerful distribution, loyalty and sales platforms. We expect this to be a period of significant growth for The Luxury Collection both in the U.S. and abroad as we sharpen the brand and drive profound consumer awareness around the world.”

With an uptick in U.S. luxury travel, The Luxury Collection is using conversion opportunities to expand its portfolio in North America, according to Starwood. Most recently, the brand welcomed Sunset Key, a private island with 40 luxury cottages nestled off the coast of Key West, in addition to signing Conrad Chicago, which is slated to join The Luxury Collection with a new name following its renovation this fall.

Later this year, The St. Anthony in San Antonio, will officially reemerge after a multimillion-dollar restoration. In December, the Cal Neva resort, situated on Lake Tahoe, will debut as part of The Luxury Collection after a complete renovation.

The brand will also make its long-awaited arrival in Napa Valley’s St. Helena in January 2016 with the opening of Las Alcobas, following a multimillion-dollar transformation that will restore the historic Acacia House and add several contemporary multi-room cottages overlooking the vineyards.

As The Luxury Collection expands, the brand is also focused on restoring its existing hotels in North America. The Royal Hawaiian, known as the Pink Palace of the Pacific, recently unveiled its enhanced Mailani Beach Tower. Later this summer, Hotel Ivy in Minneapolis will conclude a comprehensive renovation of the hotel, including a new restaurant concept; and, in September, San Francisco’s Palace Hotel will reveal a restoration, featuring redesigned guestrooms, suites and public spaces as well as a renewed Garden Court.

The investment in The Luxury Collection’s portfolio in North America follows a $500-million restoration program to breathe new life into some of brand’s European hotels. Over the past three years, hotels including the Gritti Palace in Venice, Hotel Alfonso XIII in Seville, Hotel Maria Cristina in San Sebastian, Prince de Galles in Paris and Hotel Imperial in Vienna, were brought back to their original splendor.