Starwood Hotels & Resorts Worldwide, Inc.
) is consistently trying to expand its global presence. Recently,
the company declared that despite the present worldwide
macroeconomic turmoil, it signed 152 hotel management and
franchise deals in 2013, reflecting an increase of 16% year over
year. This is the company's highest number of hotel signing in
the past six years.
The hotelier has also unveiled 74 properties with nearly
16,200 guestrooms located across 22 countries in the last year.
Apart from this, Starwood has renewed 75 contracts. In 2013, the
company mostly focused on the markets with significant growth
potential. Of the company's total development pipeline, 75%
targets the potential markets of Bangladesh, Malaysia, Indonesia,
Colombia and Saudi Arabia. Moreover, nearly 60% of the company's
deal signings in 2013 was in the emerging markets.
To counter competition, most of the hoteliers are striving to
improve guest satisfaction. Therefore, brand conversion and
renovation have become a trend, especially in the domestic
market. In 2013, Starwood opened 13 properties after successful
Starwood's Adaptive reuse project is also becoming popular.
The hotelier has opened three Aloft-branded properties under the
project in 2013 and intends to open three more such properties
The company has opened several full-service, luxury branded
properties in 2013, increasing its luxury portfolio by twofold in
the last six years. Starwood now boasts as many as 160 properties
under its luxury brands. The hotelier also plans to open 10
properties under its luxury brands in 2014.
Additionally, 30 properties were unveiled under the company's
upper upscale brands - Sheraton, Westin and Le Méridien - in
2013. Moreover, the company has entered into 60 hotel agreements
under the upper upscale properties in 2013. The company expects
to open the highest number of Le Méridien properties in 2014.
The company's mid-market brands, Four Points by Sheraton,
Aloft and Element, also grew in 2013 with 37 hotel openings and
77 deal signings. The mid-market segment portfolio has increased
80% in the past five years. Nearly 45% of the company's total
upcoming properties in 2014 will be developed under the Four
Points by Sheraton brand.
In addition, Aloft has seen solid growth in 2013. The brand
made its debut in various locations like Riyadh, Saudi Arabia;
Suwon-city, South Korea.
With the rise in global travel demand and increasing wealth,
Starwood expects 2014 to be solid in terms of openings and new
agreements. The company will continue to concentrate on the
fast-growing areas where demand is substantially high but supply
Starwood holds a Zacks Rank #2 (Buy). Some better-ranked
stocks in the hotels sector include
Home Inns & Hotels Management Inc.
Hyatt Hotels Corp.
Wyndham Worldwide Corp.
). While Home Inns & Hotels sports a Zacks Rank #1 (Strong
Buy), Hyatt and Wyndham carry the same rank as Starwood.
HYATT HOTELS CP (H): Free Stock Analysis
HOME INNS&HOTEL (HMIN): Free Stock Analysis
STARWOOD HOTELS (HOT): Free Stock Analysis
WYNDHAM WORLDWD (WYN): Free Stock Analysis
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