News for the Hospitality Executive
Starwood Holds its Global Leadership Meeting in Beijing, China
Starwood for the First Time Has
More Hotels Outside
of the United States Than Inside
BEIJING, October 27, 2010 -- Today, Starwood Hotels and Resorts Worldwide, Inc.(HOT 57.51, -0.53, -0.91%) will welcome its top 100 global executives to Beijing, China for its leadership conference. This marks the first time the leadership conference has met in China, underscoring the importance of China as Starwood's fastest growing hotel and travel market.
Starwood, one of the largest four and five star hotel operators in China today, with 62 hotels flying eight of Starwood's nine brand flags, is increasing its long-established lead here with another 86 hotels in the pipeline. China recently became Starwood's second largest hotel market behind only the United States, and between now and 2011, one in every three new Starwood hotels will open in China.
The decision to hold Starwood's global leadership meeting in China comes as Starwood for the first time boasts more hotels outside of the United States than inside. Looking ahead, more than 80% of Starwood's pipeline of new hotels is outside of the U.S., many in emerging or fast growing markets.
"Historically, Starwood was a U.S. based hotel company that happened to operate some hotels overseas," said Frits van Paasschen, President and CEO of Starwood. "Today, we're a global company that happens to be based in New York. Our dominant global footprint is a huge advantage for us, and we believe we are best poised among the major international hotel companies to take advantage of macro and secular trends like globalization, a rapidly growing global middle class, wealth creation around the world and changing travel patterns in and out of emerging markets."
Starwood to Hold Earnings Call from China
During the meeting, Starwood's most senior global executives will meet with hotel owners, customers and investors, and hold strategic planning sessions. In addition, Starwood will release its third quarter financial results this week and host its investor conference call from Beijing -- a company first that will underscore the importance of China specifically and global markets generally.
"As a travel company, we know firsthand the importance of getting out and meeting face-to-face with key stakeholders, and in the case of China, seeing really is believing -- the magnitude of growth and urbanization here is hard to understand unless you experience it firsthand," said van Paasschen.
First-Mover Global Advantage Paying Off for Starwood
Nowhere is more emblematic of Starwood's global growth story than China. Starwood benefits from a long legacy in China dating back to 1985 and the landmark debut of the Great Wall Sheraton Hotel in Beijing, the first international branded hotel in the People's Republic of China. Starwood's Sheraton and Le Meridien brands were early global pioneers in the 60's and 70's opening hotels around the world and that legacy is paying dividends today, enabling Starwood to capitalize on long established brand awareness and a deep bench of local teams in markets where many competitors are just establishing a footprint.
Starwood has Strongest Presence in Emerging Markets which are Fast Following China's Lead
"Starwood has the strongest presence in rapidly growing markets. Many predict that 70% of the world's growth over the next decade will come from fast-growing markets, which is consistent with Starwood's skew towards development in these markets," said van Paasschen.
According to van Paasschen, Starwood's growth in China is illustrative of growth opportunities in other markets throughout Asia Pacific, Africa, the Middle East and Latin America. "Many fast growing markets around the world, including China, recognize that hotels are an essential component of infrastructure growth. This works in Starwood's favor, and we could not be more bullish on our long term prospects."
China is Fastest Growing Travel Market -- Illustrative of Changing Travel Patterns
By 2015, China is expected to be the world's largest market for inbound and domestic tourism, and is forecasted to have more than 100 million outbound travelers. Already the leader for outbound tourists in Asia, China will play an outsized role in global travel within the next decade. Starwood is already feeling the impact:
Note: This press release contains forward-looking statements
within the meaning of federal securities regulations. Forward-looking statements
are not guarantees of future performance and involve risks and uncertainties
and other factors that may cause actual results to differ materially from
those anticipated at the time the forward-looking statements are made.
Further results, performance and achievements may be affected by general
economic conditions, including the duration and severity of any global
or regional economic downturns, the availability of financing alternatives
at acceptable terms, the impact of war and terrorist activity, business
and financing conditions, foreign exchange fluctuations, cyclicality of
the real estate (including residential) and the hotel and vacation ownership
businesses, operating risks associated with the hotel, vacation ownership
and residential businesses. These risks and uncertainties are presented
in detail in our filings with the Securities and Exchange Commission. Further,
there can be no assurance that agreements will be entered into for the
hotels in the Company's pipeline and, if entered into, the timing of any
agreement and the opening of the related hotel. 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 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.
Starwood Hotels and Resorts Worldwide, Inc.
|Also See:||China Becomes Starwood’s Second Largest Hotel Market Behind U.S. with 60+ Hotels and 86 New Hotels in the Pipeline / October 2010|