BEIJING--Jun. 4, 2013--
Starwood Hotels &
Resorts Worldwide, Inc. (NYSE:HOT) said today the company will
open 20 new hotels in China
in 2013. Having doubled its footprint here in the last three years,
Starwood has 120 hotels open and more than 100 in the pipeline, making China the company’s
second largest hotel market behind only the United States, and its fastest
growing. Starwood President and CEO Frits van Paasschen who is in China this week
participating in the Fortune Global Forum in Chengdu said the
company will open one new hotel every 20 days here and that 70 percent
of its pipeline of new hotels under construction and in development are
in second and third tier cities.
“We continue to view China as a once-in-a-lifetime
opportunity for our business,” said van Paasschen. “Whether it’s
growing our hotel footprint as part of the country’s massive
infrastructure development, or aggressively building our loyalty
program in the world’s fastest growing domestic and outbound travel
market, we are focused on taking every advantage of our important
first-mover position in China.”
Early Foothold in China Continues to
Pay Off; Starwood Poised to Double Luxury Portfolio
Starwood’s presence in China dates back to 1985 when the
Sheraton Great Wall Beijing debuted as the first international hotel in
the People’s Republic
of China. Today Starwood is the largest high-end hotel
operator in China
with more hotels here than competitors Marriott, Hilton and
Hyatt combined. In 2012 Starwood opened 25 hotels and signed 36
new hotel deals – a record number of openings and deals.
With over 170 cities with population over 1 million, the
runway to grow in China
continues to be long. Adding to Starwood’s long established presence in
China’s major cities, the company is focused on expansion in second and
third tier cities. Starwood’s upper upscale Sheraton, Westin and Le
Meridien brands continue to be sought after for new central business
districts and government administrative centers in second tier cities.
Starwood’s Four Points by Sheraton and Aloft brands fit well in newly
developed high-tech, industry and university parks as well as near high
speed railway stations and cities in early stages of urbanization, in
addition to ongoing expansion in established markets.
Demand for luxury hotels throughout China continues to
grow and over the next few years Starwood will double its luxury
footprint here. W Hotels, which just opened the W Guangzhou
earlier this year, will open new flagships in Beijing and Shanghai as well
as hotels in, Suzhou, Changsha and Chengdu. St.
Regis, Starwood’s ultra-luxury brand, will build on its well
established presence in China in markets including Beijing, Shenzhen and Sanya
with new hotels in Changsha,
Chengdu,
Lijiang, Qingshui Bay, Zhuhai and Nanjing while
Starwood’s Luxury Collection will expand in Dalian, Hangzhou, Nanning,
Xiamen,
Nanjing
and Suzhou.
China is Starwood’s Second Largest and
Fastest Growing Traveler Market
According to the UN World Travel Organization
(UNWTO), China
is now the world’s number one tourism source market in terms of
spending, surpassing Germany
and the United States.
In 2012, China’s expenditure on travel abroad reached US$102
billion. China
is now Starwood’s second largest source of travelers behind only North America and in 2012
outbound Chinese travel to its hotels grew by 20%. Already the largest
feeder market to Starwood hotels in Asia, China is by far the company’s fastest
growing travel market. According to van Paasschen, accelerated Chinese
outbound travel is impacting business around the globe, and last year
95% of Starwood’s hotels across nearly 100 countries welcomed guests
from Greater China.
Just as important as opening new hotels, Starwood is focused
on cultivating loyalty among China’s new mega travelers. Since 2010,
the company has doubled its base of active travelers in Starwood
Preferred Guest (SPG), the company’s loyalty program. Growth in SPG’s
base of travelers continues to grow at a rapid pace, and today, SPG
enrolls a new member every 20 seconds in China, and elite gold and platinum
members who stay 25+ nights a year are up 53% over last year. Globally,
50% of Starwood’s guests are SPG members, and in China, 55% of rooms
are filled through SPG.
Starwood Opening New Resorts
in China
to Cater to Affluent Local Market
Chinese domestic travel also continues to rise. Starwood’s
hotels in China
are no longer just outposts for Western travelers, and today 50% of
guests at hotels here are Chinese. More and more, Starwood and its
owner partners are developing hotels in China with the domestic traveler in
mind, including new resort product to meet the demands of an
increasingly affluent local market with the means and desire to travel.
Starwood will soon have more resorts in Hainan Islands (often referred
to as China’s Hawaii,)
than it does in Hawaii.
Likewise the company has opened new ski resorts in China such as the
Westin and Sheraton resorts in Changbaishan and also urban retreats
including the Sheraton Huzhou and the nearly 4,000-room Sheraton Macao,
Starwood’s largest hotel anywhere in the world.
New Hotels Driving Demand for Talent
-- Starwood To Fill 10,000 New Positions a Year in China
Over the next five years Starwood will more than double its
number of associates in China with 10,000 new hires each year.
Starwood’s long presence in China and proven career track coupled
with sophisticated recruiting efforts are helping the company attract
top talent. Because of its long tenure and well established teams in China, Starwood
boasts a deep bench here, and Starwood’s two most senior leaders in Asia Pacific, Stephen
Ho, President of Asia
Pacific and Qian Jin, President of China, both joined
the company in the 1980s and rose through the ranks to their current
positions. Within Starwood’s hotels in China, one third of its General
Managers and 79% of its hotel senior Executive Committee leaders are
Chinese.
About Starwood Hotels &
Resorts Worldwide, Inc.
Starwood Hotels & Resorts Worldwide, Inc. is one of the leading
hotel and leisure companies in the world with 1,146 properties in
nearly 100 countries and 171,000 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
Element®. 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.