Emerging markets to boost Starwood in 2013
Starwood Hotels & Resorts has said it expects a strong year of openings and new hotel signings in 2013, with emerging markets driving the company’s portfolio growth.
The US-based hotel company signed a total of 131 new hotel management and franchise agreements in 2012, an increase of 17% over 2011 levels. And Starwood expects this upward trend to continue this growth in 2013.
“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,” said Simon Turner, Starwood’s President of Global Development.
Nearly two-thirds of Starwood’s new hotels in 2013 will open in what the company called “fast-growing markets”. In Asia, these will include the first ever Starwood property in Tajikistan, and additional properties in Malaysia, Singapore, Thailand, Vietnam and Bangladesh, along with continued expansion in China and India. Asia now accounts for approximately one quarter of Starwood’s existing hotel rooms and over half its pipeline.
Starwood also expects the luxury sector to provide strong growth opportunities in 2013. Over the past five years, Starwood nearly doubled its portfolio of St Regis, Luxury Collection and W Hotels properties, and 15% of the company’s current pipeline is in its luxury labels. Openings in Asia Pacific this year will include The Castle Hotel in Dalian, Vana Belle in Koh Samui and W Guangzhou – the first W Hotel in mainland China.
In the upscale segment, Starwood will open nearly 20 Sheraton properties in 2013, including nine in China alone, while new Westins will open in Chennai, Haikou, Sanya, Chongqing, Qingdao and Singapore. Le Meriden hotels meanwhile, are expected to come online in Zhengzhou, Ho Chi Minh City and Dhaka.
Among the midscale brands, Aloft, Element and Four Points by Sheraton, will also see significant growth. The three brands now account for approximately one third of the company’s global pipeline.