Starwood to open 70-80 hotels in 2011
From the American Lodging Investment Summit (ALIS) in San Diego, Starwood Hotels & Resorts Worldwide, Inc. has announced that it expects to open another 70-80 new-build and conversion hotels in 2011, coming off of the 72 opened and 96 new deals signed in 2010. Propelled by unprecedented demand for hotels in the world’s fastest growing markets, Starwood, the world’s most global hotel company, will open nearly 70% of its new hotels outside North America, with the majority in Asia Pacific.
Starwood is also widening its lead as the largest operator of luxury and upper upscale hotels in the world. Of the new hotels Starwood is opening this year, 60% will be in the luxury and upper upscale segment, including six St. Regis hotels and two Luxury Collection properties. This year, Starwood will also open its 100th hotel under its St. Regis and Luxury Collection brands.
“Starwood is well positioned to meet the resurgence in demand for luxury lodging and now offers more luxury in more destinations than any hotel company,” said Frits van Paasschen, President and CEO of Starwood. “At the same time, we are also leveraging our global advantage in key international markets where building hotels is critical to developing infrastructure. The world’s rising economic powers are expected to surpass established markets by 2050, and our footprint is growing accordingly.”
Asia Pacific is Starwood’s Leading Growth Market
Robust demand in Asia Pacific remains a key driver of Starwood’s growth, accounting for more than half of all Starwood hotel openings in 2011. Starwood will open 40 new hotels in Asia Pacific this year, resulting in a portfolio of over 220 hotels in the region by year end.
Over half of the new Starwood hotels opening in Asia Pacific are slated for Greater China, where Starwood expects to increase its current portfolio from 70 to over 115 hotels by 2012. Openings will include 19 Sheraton hotels, ten Westin hotels, and two St. Regis hotels.
“As China prepares to dominate the global tourism market with one million outbound travelers by 2015, we expect their loyalty to our brands to have an ever increasing impact on our business worldwide,” said Simon Turner, President of Global Development for Starwood. “Starwood’s first mover advantage has positioned us well to increase our portfolio across China and throughout Asia Pacific, as we continue to leverage the expertise of our seasoned local teams and our longstanding relationships with owners and developers in the region.”
Demand continues to accelerate in India where Starwood is the largest five-star hotel operator. Starwood plans to grow its existing portfolio of 30 hotels in India by 40% in the next two years. Starwood’s stylish, new Aloft brand will more than double its footprint in India by year end with the opening of three more hotels, and four additional hotels will open under the Sheraton, Four Points by Sheraton and Le M