Starwood Hotels & Resorts Worldwide, Inc is strengthening its position because the leading hotel operator around the Middle East and Africa (MEA) region with an existing portfolio of 82 hotels, representing nearly 22,000 guest rooms, the vast majority of which can be operated under Starwood’s world-renowned Sheraton and Le Méridien brands. The corporate announced today that it’s going to increase its MEA portfolio by greater than 60% with nearly 50 new hotels set to open over a higher five years, adding greater than 14,000 guest rooms to the region while creating thousands of local employment opportunities. With over 20 hotels expected to open by the top of 2015, Starwood is on target to arrive a milestone 100 hotels across MEA. Further underscoring the significance of the region as one in every of Starwood’s fastest growing hotel and travel markets, earlier this month the corporate relocated its global headquarters from Stamford, Connecticut to Dubai for a month-long immersion.
“Dubai epitomises the changing face of travel, and we think this relocation will deepen our relations with partners, associates and customers. The insights that come from experiences like this move make us more agile in today’s rapidly changing world.”
“Starwood continues to work out demand for growth of all of our brands around the Middle East and Africa despite economic and political uncertainty in some parts of this incredibly diverse region,” said Frits van Paasschen, President and CEO, Starwood Hotels & Resorts. “Rapid economic growth, rising personal incomes, a growing middle class and ever greater global connectivity are driving new travel patterns and insist for travel, and this region is on the center of those trends and a key focus of our growth strategy.”
With greater than 70% of the world’s economic growth coming from fast-growing markets over the following couple of years, Starwood is concentrated on expansion in developing MEA markets corresponding to the United Arab Emirates (UAE), Saudi Arabia, Algeria, Egypt, Senegal, South Africa and Nigeria. The corporate could also be concerned with growth opportunities in key emerging markets including Iraq, Pakistan, Angola, Ghana, the Ivory Coast and East Africa.
By 2017, Starwood will operate greater than 130 hotels in MEA, marking some key milestones, including:
* Portfolio growth of over 60% within the UAE with 12 new hotels, including six in Dubai, bringing Starwood’s portfolio to greater than 30 hotels around the country. Starwood’s growth plans within the UAE also include expansion into Sharjah and Ajman.
* Rapid expansion across Saudi Arabia with six new hotels slated to open by 2015 bringing Starwood’s portfolio to fifteen hotels on this key developing market.
* The re-entry of Starwood into Iraq with the milestone signings of 3 hotels across three brands within the city of Erbil, located within the re-emerging Kurdistan area of the rustic.
* Momentum in Nigeria with two new Starwood hotels, under the company’s Four Points by Sheraton brand.
* Addition of 2 new hotels in Algeria with a brand new Sheraton hotel in Annaba and 4 Points by Sheraton in Oran.
* The launch of Starwood’s Aloft Hotels brand in Saudi Arabia and Iraq. Aloft may also open its second property inside the UAE inside the emirate of Sharjah.
Starwood Strengthens Luxury Portfolio
In 2011, Starwood introduced its ultra-luxury St. Regis Hotels & Resorts brand within the region with the outlet of The St. Regis Saadiyat Island in Abu Dhabi. This was followed by last year’s debuts of The St. Regis Doha and The St. Regis Mauritius, marking the entry of the emblem into Qatar and Africa. This year, Starwood will unveil a second St. Regis hotel on Abu Dhabi’s vibrant Corniche, making it the sole city on earth to boast two St. Regis hotels. The emblem will soon enter the Egyptian market with the hole of The St. Regis Cairo.
Starwood can also be seeing rapid growth of its contemporary, design-led W Hotels brand. Following the successful launch of the logo within the region with the hole of W Doha in 2009, Starwood has plans to open six more W Hotels across MEA in key markets, including three in Dubai and one each in Abu Dhabi, Muscat and Amman by 2017.
“Our long-established presence, local teams, and robust relationships within the region remain a competitive advantage, and position us well to exploit the numerous opportunities for future growth,” said Simon Turner, President of world Development & Acquisition, Starwood Hotels & Resorts. “We have a healthy pipeline of recent hotels under development within the Middle East and Africa, and expect our growth to continue in 2013 as we glance to expand in markets including the UAE, Saudi Arabia and Nigeria.
Conversion Opportunities in MEA
In addition to new hotel openings, Starwood is seeing increasing opportunities for hotel conversions in MEA. Previously ten months, Starwood has signed three conversion deals within the region, including Sheraton Dubai Mall of the Emirates, which opened last month.
“Thanks to Starwood’s nearly 50 year history inside the MEA region and the proven strength of our brands, the corporate is definitely positioned to take full benefit of growth,” said Roeland Vos, President of Starwood Hotels & Resorts, Europe, Africa & Middle East. “We are seeing a big landscape of independent hotels ripe for flags inside the region and we predict to capture greater than our justifiable share of conversion opportunities across all of our brands. The new conversion of the Sheraton Dubai Mall of the Emirates is a testament of this strategy.”
As Starwood continues its extensive expansion across MEA, the corporate can be serious about upgrading its existing portfolio of hotels within the region, primarily under the Sheraton and Le Méridien brands.
Starwood Relocates Global Headquarters to Dubai
Earlier this month, Starwood President & CEO Frits van Paasschen and the company’s top executives relocated to Dubai where they’ve been conducting day-to-day business from this increasingly important global destination and travel hub. Following the company’s successful relocation to China in June 2011, this second leadership move reflects Starwood’s innovative management method to cultivating a more global culture by understanding, appreciating and leveraging different societal perspectives and approaches to business and hospitality.
“With 80% of Starwood’s pipeline coming from rapidly growing markets, this is simply impossible to guide a very global business from a boardroom in Connecticut,” said van Paasschen. “Dubai epitomises the changing face of travel, and we predict this relocation will deepen our relations with partners, associates and customers. The insights that come from experiences like this move make us more agile in today’s rapidly changing world.”