Starwood Sees Strong Growth Momentum in North America in 2013
Expects Strongest Year of Openings and Signings in North America since
Pre-Crisis with Conversions Continuing to Fuel Growth
STAMFORD, Conn. -- January 22, 2013
From the 2013 American Lodging Investment Summit in Los Angeles, Starwood
Hotels & Resorts Worldwide, Inc. (NYSE: HOT) announced today that it opened 23
hotels in North America in 2012 and signed more new deals than in the previous
two years, including 21 conversions. Looking ahead to 2013, Starwood
anticipates its strongest year of openings in North America since before the
global economic crisis with 28 scheduled openings. Conversions will continue
to fuel growth with in-the-year conversions expected to result in additional
new hotel openings this year.
“North America remains our largest market with 576 hotels and saw more hotels
signed in 2012 than any other region in our vast network,” said Simon Turner,
President of Global Development. “We have opened over 135 new hotels in North
America since the global economic crisis and expect pent up demand and limited
new supply to continue to drive our growth in 2013.”
“There are a number of positive trends in the North American hospitality
market and we expect more than one-third of Starwood’s hotel openings around
the world to be in the U.S. and Canada in 2013,” said Allison Reid, Senior
Vice President of North America Development, Starwood. “Our strong brands,
global scale and presence, powerful systems and growing base of loyal
customers continue to set Starwood apart from our competition. We are seeing
increased interest among owners in initiating new hotels with Starwood
especially around conversions.”
Powered by Four Points by Sheraton and Aloft, Mid-Market Brands See Banner
Starwood’s “Specialty Select” or Mid-Market brands, Four Points by Sheraton,
Aloft and Element, will continue charging across North America in 2013.
Fast-growing Four Points by Sheraton, with its popular positioning around
comfort, style, and affordability, is expected to surpass 120 hotels in North
America and 190 globally in 2013. Twelve openings in key markets will include
hotels in Manhattan (KS), San Jose/Silicon Valley (CA), Columbus (OH),
Richmond Airport (VA), Kansas City (MO), Charleston (WV), Louisville (KY) and
Jacksonville (FL). In Canada, Four Points by Sheraton will debut in Kelowna,
Nisku, Edmunston, and Regina. Over the past five years, the Four Points by
Sheraton portfolio has surged by 15% in North America and the brand is now
Starwood’s third largest with the second-biggest global pipeline.
Aloft, Starwood’s sizzling “style at a steal” brand, continues conquering
markets wherever it plants a flag. This year, the brand will open its
milestone 50^th property in North America and 75^th globally – and is on track
to open nearly three times as many rooms this year as in 2012. Over the past
three years, Aloft has grown its global portfolio by 67%, and expects to
expand by another 25% in 2013. Aloft also signed eight deals in North America
and an additional 17 globally during 2012 – the highest number since 2008.
Conversions and adaptive-reuse projects continue helping Aloft meet demand
from partners and developers to bring more properties online quicker.
Conversions opening in 2013 include Aloft Tucson and Aloft Calgary University.
Aloft opened two conversion projects in 2012: Aloft San Francisco Airport, its
first internal conversion, and Aloft Nashville West End.
Element, Starwood’s industry-leading “stylish and sustainable” brand, has
built a base of fiercely loyal fans and will open its first property outside
the U.S. this year with Element Vaughan Southeast in Ontario, Canada, to be
followed by the debut of the brand in Europe in 2014.
Upper Upscale and Luxury Brands Enjoy Strong Position and Sustained Growth
Starwood’s stronger-than-ever upper-upscale brands, Le Méridien, Westin and
Sheraton, will also see sustained North America expansion in 2013. After
significant brand investment and transformation, Le Méridien is experiencing
strong growth momentum, with eight new hotel openings globally slated for
2013. Conversions continue to serve as a growth opportunity for Le Méridien,
with recent conversion hotels having opened in Mexico City and Arlington,
Westin, whose singular positioning around wellness continues powering global
growth, will open four hotels in 2013 in the U.S.: The Westin Birmingham, The
Westin San Jose, The Westin Sacramento, and The Westin Houston Downtown – the
4^th Westin in that city. And Sheraton, one of the hotel industry’s most
revered brands and Starwood’s largest brand in North America, boasts its
strongest portfolio in its history. In 2012, Sheraton announced that the brand
will enter the Dominican Republic in 2014 with the Sheraton Santo Domingo and
the brand will also debut this year at Pittsburgh Airport. The company also
recently announced that a new boutique hotel affiliated with the Sheraton
brand will be developed adjacent to Wrigley Field, home of the Chicago Cubs.
Starwood continues to have, and build on, one of the strongest North America
luxury portfolios in the industry with its St. Regis, The Luxury Collection,
and W Hotels brands. In 2012, the company signed The St. Anthony, A Luxury
Collection Hotel, San Antonio – an external conversion set to open in 2014 as
the second Luxury Collection property in Texas.With 85 hotels in nearly 30
countries, The Luxury Collection remains Starwood’s largest luxury brand, and
with its appeal to independent hotel owners it continues to grow, increasing
its global footprint by 70% since 2007. Starwood also celebrated the landmark
opening of The St. Regis Bal Harbour Resort in 2012. W Hotels and its
ownership groups have invested more than $100 million in updating the North
American W portfolio, including the recent completion of renovations at W New
Orleans – French Quarter, W San Diego, W Seattle, W San Francisco, and W New
York – Union Square.
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
(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.)
Starwood Hotels & Resorts Worldwide, Inc.
Carrie Bloom, 203-964-5755
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