Starwood Hotels anticipates another strong year of openings in north America
From the 2014 American Lodging Investment Summit in Los Angeles, Starwood Hotels & Resorts Worldwide, Inc. (NYSE:HOT) today announced that it expects another year of robust growth in North America with approximately 30 new hotels slated to open by year’s end, driven by the rapid proliferation of its Four Points by Sheraton and Aloft brands and a surge in conversions across several of its brands, including Le M?ridien, which is experiencing strong development momentum. In 2013, Starwood opened 33 new hotels and signed 52 new hotel deals in North America, up 27% over signings the previous year and the most signed since before the global economic crisis.
“Starwood remains extremely bullish about its growth prospects in North America, which is still our largest market, comprising over 50% of our existing global portfolio,” said Simon Turner, President of Global Development for Starwood Hotels & Resorts Worldwide, Inc. “We now have a total of 577 hotels in North America and expect record low supply and growing demand to continue driving growth.”
“Starwood will open about one-third of its new hotels in North America in 2014, reflecting the continued strength of our brands in this important market,” said Allison Reid, Senior Vice President of North America Development for Starwood Hotels & Resorts Worldwide, Inc. “Owners and developers are showing increased interest in conversions and new builds under one of Starwood’s brands in order to tap into Starwood’s powerful network, global booking platforms and loyal customer base.”
Starwood’s Specialty Select Brands are Driving Starwood’s Growth in North America
Starwood’s “Specialty Select” brands — Four Points by Sheraton, Aloft and Element — are leading Starwood’s growth in North America and account for approximately 75% of new hotel openings in the region in 2014. As a group, these brands have grown 80% globally since 2008 and are on track to surpass 200 hotels in North America this year.
Four Points by Sheraton signed nearly twice as many deals over the past five years in North America than any other Starwood brand. Fueled by its successful positioning emphasizing uncomplicated comfort and timeless style, Four Points will open 12 new hotels in North America in 2014, nearly all conversions. Key 2014 openings include the first Four Points in Charleston, West Virginia; Phoenix, Arizona; and Surrey, British Columbia; as well as its second in Nashville, Tennessee and the fourth in Manhattan. Boasting the second largest global pipeline among all of Starwood brands, Four Points by Sheraton will open its 200(th) hotel worldwide this year as it nears its 125(th) milestone in North America.
Starwood’s stylish Aloft brand will surpass 60 hotels in North America this year. Aloft signed 16 new hotel deals in North America in 2013 — the most of any Starwood brand in the region and the highest number since 2008. While the majority of Aloft hotels coming online are new builds, the brand is also attracting a growing number of adaptive re-use projects and conversions. This year, Aloft will enter numerous new markets with eight new hotel openings in North America including two more adaptive re-use projects, Aloft Tampa Downtown and Aloft Detroit, and two conversions, Aloft Atlanta Downtown and Aloft Calgary University. Other key openings will include Aloft Oklahoma City.
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