Starwood Hotels & Resorts to expand European portolio by 40% with the opening of more than 60 new hotels by 2020
From the International Hotel Investment Forum (IHIF) in Berlin, Starwood Hotels & Resorts Worldwide, Inc. (NYSE:HOT) today announced plans to open more than 60 new hotels and resorts across Europe by 2020, increasing its current European hotel portfolio by nearly 40%. Starwood will open nine new hotels in Europe this year, primarily in fast-growing markets such as Turkey, Russia and the Commonwealth of Independent States (CIS). Further underscoring its long-term development strategy, Starwood today announced that it has signed a deal to open Sheraton Istanbul Atasehir Hotel, its seventh Sheraton hotel in Turkey.
Simon Turner, President of Global Development for Starwood Hotels & Resorts, said: ?We are seeing rising demand for development in both established and rapidly growing markets across Europe, fuelled by strong interest in our globally recognized and admired brands and the ability to tap into Starwood?s strong distribution network and loyalty program. The surge in infrastructure development in markets such as Turkey and Russia and the success of our mid-market brands across the continent have created favorable conditions for the expansion of all of our brands across Europe over the next several years.?
Starwood Continues Vigorous Expansion in Turkey
Following the opening of three new hotels in Turkey in 2013, Starwood will open an additional four properties in the country, including The St. Regis Istanbul later this year, followed by Four Points by Sheraton Istanbul and two new Sheraton hotels in Samsun and Istanbul.
The newly signed Sheraton Istanbul Atasehir will feature 160 guest rooms with scenic views of the Marmara Sea and the bustling city. The hotel will offer extensive meeting and event space as well as an all-day dining restaurant, a lobby bar, the signature Sheraton Shine Spa with five treatment rooms and an outdoor swimming pool. Starwood currently operates 10 hotels in Turkey under five of its nine its lifestyle brands. Set to open next year, Sheraton Istanbul Atasehir will reinforce the global growth of the Sheraton brand as it remains on track to open its 500th?hotel.
Deal-signing Pace in Europe Back to Pre-crisis Levels
In 2013, Starwood signed 12 new hotel management and franchise agreements in Europe, maintaining the company?s 2007 deal signing pace. The company opened seven hotels in Europe last year, adding approximately 1,200 rooms in five countries while expanding its footprint across the continent with 80% of this growth in developing markets.
In addition to Turkey, Starwood is maintaining strong growth momentum in Russia and the CIS countries where it is poised to triple its portfolio over the next three years, with 12 new hotels. These openings include the debut of Aloft and The Luxury Collection in Ukraine, the company?s entrance into Tajikistan and Kazakhstan, plus seven additional hotels in Russia ? in Moscow and St. Petersburg as well as secondary and tertiary cities, including Kaluga, Perm, Krasnodar and Rostov-on-Don.
Mid-Market Brand Portfolio to Double by 2016
Starwood?s mid-market brands ? Four Points by Sheraton, Aloft Hotels and Element ? continue to enjoy strong growth in Europe with 12 hotels currently under development, which will double the mid-market portfolio by 2016. Among this year?s hotel openings are three new mid-market hotels in Germany, including the European debut of the Element brand at Frankfurt Airport. Aloft is seeing marked growth in Europe with plans to enter new markets such as Liverpool, Munich, Stuttgart, St. Petersburg, Kiev and Amsterdam. The company is in advanced discussions on more than a dozen new mid-market hotel deals across the continent and is particularly focused on growing these brands with multi-unit owner partners under franchise hotel contracts in markets such as Germany, Scandinavia and the UK.
Bart Carnahan, Senior Vice President Acquisitions & Development, Starwood Hotels & Resorts, Europe, Africa & Middle East, said: ?We are proactively looking to increase our franchise portfolio throughout Europe, a market well-suited for this business model, and have set a goal to grow our franchise business by 100% over the next six years. Our agile development approach allows us to adapt our growth strategies based on specific geographies and brand needs for both new development and conversions.?
Luxury Brands Maintain Upward Momentum for Starwood
Starwood will continue to grow its luxury brands in Europe, where it operates nearly 50 hotels under the St. Regis, W Hotels and Luxury Collection brands. The company has five new luxury hotels under development in Europe, including W Hotels in Amsterdam, Milan and Tel Aviv, The St. Regis Istanbul and the addition of Hotel Bristol, a Luxury Collection Hotel in Odessa (Ukraine). Starwood is in advanced discussions for five additional luxury hotels on the continent.
Michael Wale, President, Starwood Hotels & Resorts, Europe, Africa and Middle East, said: ?The Luxury Collection caters to those looking for authentic travel experiences that combine local culture, lifestyle and architecture. The expansion of this brand in Europe reflects demand across both established city and resort destinations, as well as an opportunity to develop unique travel offerings in emerging markets together with our partners. With the large landscape of independent luxury hotels in Europe, many of which are seeking a strong brand and global selling power, we expect some well-established conversion opportunities in key European cities this year.?
Together with its owner partners, Starwood continues to make significant investments to restore and enhance several of the company?s iconic European luxury hotels. In the past two years, Starwood and its partners have invested more than 150 million Euros to restore four of Europe?s most iconic hotels under The Luxury Collection brand ? The Gritti Palace in Venice, Prince de Galles in Paris, Hotel Alfonso XIII in Seville and Hotel Maria Cristina in San Sebastian. Additionally, The Luxury Collection has unveiled restored public spaces and enhanced guest accommodations at the historic Hotel Bristol in Vienna, Hotel Danieli in Venice and The Park Tower in London while introducing new villas at Hotel Pitrizza and Hotel Romazzino in Sardinia and branded residences at Pine Cliffs in the Algarve.