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Starwood to expand luxury portfolio

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Starwood Hotels and Resorts plans to open 80 new hotels in 2012, building on a year of record growth with 112 new hotel deals in 2011 - the highest number since before the global economic crisis.

One of its key growth markets is Europe, where the operator is looking to further benefit from the slow growth in the Eurozone and its property market.

Starwood has confirmed that it has secured deals for 25 new hotels in Europe and will phase the launches over the next four years.

Perhaps more significantly, Starwood said it will be concentrating its investment and growth in luxury properties as it firmly believes in the recovery of the high-end market.

Of the 80 openings in 2012, more than 60 per cent will be in the luxury and upper-upscale segment. In the past four years, Starwood has grown its global luxury room count by 75 per cent.

And it isn't just new luxury properties that Starwood is spending money on. The company has invested more than US$100m (76m euro, £63m) in renovating and restoring some of its most iconic Luxury Collection hotels.

Some of the hotels to benefit include the Grand Hotel in Florence, Italy - re-opened last year as a St. Regis hotel; the Hotel Alfonso XIII in Seville, Spain; and Hotel Gritti Palace in Venice, Italy, as well as Hotel Maria Cristina in San Sebastian, Spain.

Starwood's growth in Europe is also being accelerated by a focus on key fast-growing markets, including Russia, Ukraine and Turkey. It will double its portfolio in Russia and Ukraine by 2014 with openings in Moscow, Rostov-on-Don, Perm and Kiev.

In Turkey, Starwood is aggressively expanding its pipeline with four new hotels opening in a three-year period, including the recent debut of Le Méridien Istanbul Etiler that marks the brand's entrance into the country.

It has already opened two new flagship hotels in Europe with a W hotel in Paris and a Le Méridien hotel in Istanbul.

Simon Turner, president of Global Development for Starwood, said: "Against a backdrop of uncertainty, Starwood's pipeline of both managed and franchised deals for all nine brands in Europe is healthy and expected to grow in 2012.

"Eastern and central Europe are particularly fertile ground for growth, primarily with new-build properties, while we see numerous ongoing conversion opportunities in established markets throughout Europe."

Starwood has 1,090 properties in 100 countries and territories, with 154,000 employees at its owned and managed properties.

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Starwood Hotels and Resorts plans to open 80 new hotels in 2012, building on a year of record growth with 112 new hotel deals in 2011 - the highest number since before the global economic crisis.
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