Starwood will expand its European portfolio by 30% over the next five years as it capitalises on strong growth opportunities in the mid market hotel tier in established and emerging markets, as well as conversion and franchise demand in more mature destinations.
The global hotel giant has lined up more than 40 new hotel openings this year in both fast-growing and established European markets such as Croatia, Germany, Italy, Netherlands, Romania, Russia, and Turkey. In fact, Turkey features prominently in the hospitality conglomerate’s long term growth strategy, with five new properties set to launch within the next ten months, including The St. Regis Istanbul which just opened on 1 March.
“2014 was a record year of deal signings for Starwood in Europe with consistent, sustainable high-quality portfolio growth in key European markets and sought-after destinations,” said Simon Turner, Starwood’s president of global development.
“Our growth momentum continues this year with 14 hotels on track to open across Europe and strong owner interest in our nine lifestyle brands, backed by our loyalty programme, the collective strength of our global platform and our highly-experienced, local teams.”
In 2014 Starwood experienced a record year of deal signings in Europe with almost 60% more signed deals than in the previous year, largely driven by conversion deals. Starwood continues to see increased interest from owners looking to maximise the value of their assets quickly, with many conversion opportunities amidst growing demand coming from the UK, Germany, France and Southern Europe.
Franchise deals are a fundamental part of Starwood’s development strategy, driving nearly 50% of signed hotel deals in Europe last year. The pace of franchise deal signings is expected to continue through 2020, particularly in mature European markets.
Starwood’s three distinct mid-market brands, Aloft, Four Points by Sheraton and Element, are seeing very strong growth. The company’s mid-market portfolio is poised to exceed 50% of Starwood’s development pipeline with more than 15 new hotel openings expected across the three brands by the end of 2017.
Today, Starwood has more than 1,200 properties in nearly 100 countries and over 180,000 employees at its owned and managed properties.
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