STAMFORD, Conn.--Jan. 9, 2013--
Starwood Hotels & Resorts Worldwide, Inc. (NYSE: HOT) today
announced that, building on its 2012 momentum with the most hotel deals
signed since before the global economic crisis, it anticipates a strong
year of openings and new hotel agreements signings in 2013. Over the
last five years, Starwood has cultivated a quality pipeline of new
hotels with well-capitalized, experienced owners for continued growth
around the globe.
“Rising wealth, increasingly global businesses and a digitally
connected world are creating unprecedented demand for travel and new
travel patterns, and we continue to be as bullish as ever about our
long-term growth,” said Frits van Paasschen, President and CEO.
“Whether it’s manufacturing in Vietnam, mineral resources from Nigeria,
or outbound tourism from Brazil, Russia, India or China, globalization
is spurring economic development and creating many exciting expansion
opportunities for our business.”
Simon Turner, President of Global Development, said: “After a strong
year in 2012 of openings, deal signings and increased owner interest in
development, we are entering 2013 well-positioned for continued
footprint growth in both emerging and developed markets. Our
long-established global presence remains a competitive advantage, and
our local teams provide know-how and strong relationships paving the
way for future growth and the continued expansion of our nine brands.
In 2012, Starwood signed a total of 131 new hotel management and
franchise agreements which represented an increase of 17 percent over
2011 signings levels, including 31 conversions, 12 of which opened
during 2012."
Consistent with macroeconomic growth trends, nearly two –thirds of
Starwood’s new hotels in 2013 will open in fast-growing markets.
Starwood plans to open its first property in Tajikistan, while also
expanding further in such important markets as Peru, Brazil, Mexico,
Panama, Malaysia, Singapore, Thailand, Vietnam, Bangladesh, Hungary,
Turkey and Saudi Arabia, as well as perennial growth markets like China
and India. The company will also continue to focus on identifying the
right partners for continued development in Brazil, Russia and
throughout sub-Saharan Africa. Asia remains a high priority market for
Starwood, accounting for approximately one quarter of Starwood’s
existing hotel rooms and over half of Starwood’s pipeline.
Mr. van Paasschen, added: “Our owners are uniquely positioned to
benefit from Starwood’s global presence, scale, powerful systems and
strong, growing base of loyal customers around the world. As part of
our balanced approach to development, we are also seeing significant
opportunities in established markets where conversion momentum
continues, and record low supply and growing demand are driving growth.”
Starwood continues to build on its established presence in mature
markets and to see strong interest in conversions for growth in
developed markets such as North America. The company expects to see
increased conversion momentum in 2013 in Asia Pacific, Latin America
and Europe.
Starwood to Lengthen Luxury Lead
in 2013
Starwood continues to lengthen its lead in the luxury space with over
150 properties in its luxury portfolio under the St. Regis, Luxury
Collection and W Hotels brands, and remains uniquely positioned to
capitalize on the increasing number of people around the world
developing the means and appetite for luxury travel. Over the past five
years, Starwood nearly doubled its global luxury footprint. Fifteen
percent of Starwood’s pipeline of new hotels are in its luxury
portfolio, including an impressive pipeline in Asia Pacific and many
conversion opportunities that exist around the world as independent,
boutique hotels look to benefit as part of the Starwood system.
In 2013, Starwood will celebrate the opening of The St. Regis Abu Dhabi
and the re-openings of two luxury icons and members of the Luxury
Collection, the Gritti Palace and Prince de Galles, after significant,
multi-million dollar restorations. New openings for the Luxury
Collection include: The Castle Hotel, Dalian (China); Vana Belle, Koh
Samui (Thailand); and Palacio del Inka (Peru). Starwood will open its
first W Hotel in mainland China with W Guangzhou and the first W alpine
ski resort with W Verbier (Switzerland).
Upper Upscale Brands Continue to
Fuel Global Growth
2013 will be a strong year for Starwood’s upper upscale brands,
Sheraton, Westin and Le Méridien. Sheraton, the global
hospitality icon which has been a first mover into many new markets
around the world, will continue to fuel Starwood’s growth with nearly
20 planned openings in 2013, a historic number of openings as the brand
moves towards its milestone 500th opening in 2015. Sheraton remains a
leader in China with 57 hotels now operating and another 9 expected in
2013.
Westin is also experiencing meaningful growth around the world and
expects to open its 200th hotel this year. Expected openings for 2013
include The Westin Birmingham (U.S.); The Westin Chennai Velachery
(India); The Westin Houston Downtown (U.S.); The Westin Haikou (China);
The Westin Sanya Haitang Bay Resort (China); The Westin San Jose
(U.S.); The Westin Chongqing Liberation Square (China); The Westin
Qingdao (China) and The Westin Singapore Marina Bay (Singapore). After
a significant investment in its hotels, Le Méridien is
benefiting from growing brand recognition and deal signing momentum
around the world. Planned 2013 openings include: Le Méridien
Dallas, The Stoneleigh (U.S.); Le Méridien Atlanta Perimeter
(U.S.); Le Méridien Zhengzhou (China); Le Méridien Saigon
(Vietnam); Le Méridien Dhaka (Bangladesh); Le Méridien
Cairo Airport (Egypt); Le Méridien Mahabaleshwar Resort &
Spa (India) and Le Méridien Jiaonan Resort (China).
Long Runway to Grow Mid-Market
Brands Globally
Building on significant deal signing momentum in 2012 and the most room
openings since 2009, Starwood’s mid-market portfolio, which includes
Aloft, Element and Four Points by Sheraton, has grown over 60 percent
since 2009 reflecting the brands’ worldwide appeal. This is a direct
benefit from Starwood’s longstanding tenure and teams in key global
markets where there are significant growth prospects - particularly in
secondary and tertiary markets – and meaningful guest, customer and
owner appetite for affordable and reliable global hotel brands.
Starwood will open its 250th mid-market hotel this year. The three
brands account for approximately one third of the company’s global
development pipeline and nearly 45 percent of expected hotel openings
worldwide in 2013.
Four Points, which represented over a quarter of Starwood’s openings
and signings last year, is set to open its 175th hotel and is expected
to sign more deals in 2013 than ever before in company’s history,
driving growth throughout the world. Aloft is also being fueled by
great global momentum, and plans to grow its portfolio by nearly 30
percent in 2013, and celebrate its 75th hotel, driven heavily by
openings in China, North America and India. The brand is benefiting
from a desire for design-centric, hotel brands around the world at an
affordable price. Aloft is growing through an increased number of
conversions, and will debut in Panama, Malaysia and Turkey during the
year. Element will open its first hotel outside of the United States
with its debut in Canada this summer followed by the brand’s debut in
Europe in 2014.
About Starwood Hotels &
Resorts Worldwide, Inc.
Starwood Hotels & Resorts Worldwide, Inc. is one of the leading
hotel and leisure companies in the world with 1,134 properties in
nearly 100 countries and 154,000 employees at its owned and managed
properties. Starwood is a fully integrated owner, operator and
franchisor of hotels, resorts and residences with the following
internationally renowned brands: St. Regis®, The Luxury
Collection®, W®, Westin®, Le Méridien®,
Sheraton®, Four Points® by Sheraton, Aloft®, and ElementSM.
The Company boasts one of the industry’s leading loyalty programs,
Starwood Preferred Guest (SPG), allowing members to earn and redeem
points for room stays, room upgrades and flights, with no blackout
dates. Starwood also owns Starwood Vacation Ownership, Inc., a premier
provider of world-class vacation experiences through villa-style
resorts and privileged access to Starwood brands. For more information,
please visit www.starwoodhotels.com.
(Note: This press release
contains forward-looking statements within the meaning of federal
securities regulations. Forward-looking statements are not guarantees
of future performance or events and involve risks and uncertainties and
other factors that may cause actual results or events to differ
materially from those anticipated at the time the forward-looking
statements are made. These risks and uncertainties are presented in
detail in our filings with the Securities and Exchange Commission.
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 and
events 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.)