Starwood Hotels & Resorts Worldwide Inc. HOT is striving to expand its footprint across Europe, in both the developing and mature markets. The hotelier recently announced that it is on track to open more than 40 hotels and resorts across Europe over the next five years, thus expanding its portfolio by almost 30%.
The company will open four more hotels in Turkey by 2015-end, apart from The St. Regis Istanbul unveiled on Mar 1. Starwood will also debut the Four Points by Sheraton brand in the country with two hotels in Batisehir and Dudullu. Starwood also intends to open a hotel under the Sheraton brand in Atasehir, and recently entered the coastal city of Samsun.
In Russia, two hotels are slated to open in 2015 — Sheraton Ufa and Four Points by Sheraton in Kaluga. The latter will mark the foray of the Four Points by Sheraton brand in the country. With six more hotels in the development pipeline, Starwood will double its footprint in the region over the next three years.
In Germany, Starwood will launch its Aloft brand in Stuttgart and Munich this summer, thus bringing its total hotel count to nearly 30. The company will also debut the W and Element brands in the Netherlands by 2015-end. While W Amsterdam will be located in the Dam square — close to the city’s canal district — Element Amsterdam will be situated near the city’s commercial area.
The company will also debut in Romania with Sheraton Bucharest scheduled for a 2015 autumn opening, and expand its footprint in Croatia with Sheraton Dubrovnik Riviera Hotel. Meanwhile, Sheraton Lake Como Hotel, a converted property, in Italy is scheduled to be opened soon. The company’s conversion-friendly approach allows it to maintain a cost-efficient process, apart from expanding its footprint.
Starwood’s three mid-market brands — Aloft, Four Points by Sheraton and Element — are experiencing immense demand worldwide. In Europe, the company’s mid-market portfolio is expected to exceed 50% of its development pipeline with more than 15 hotel openings under these three brands to be completed by 2017-end.
Europe ranks high among the famous tourist destinations. Although recent economic volatility across the Euro-zone resulted in a drop in the number of tourists, moderate improvement in the beginning of this year, is expected to give a major boost to tourism. In our view, Starwood, along with other hoteliers like Marriott International, Inc. MAR, Hyatt Hotels Corporation H and Intercontinental Hotels Group plc IHG, is striving to capitalize on this demand.
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