In line with its continued band revitalization initiatives,
Starwood Hotels & Resorts Inc.
) recently completed an extensive makeover of its iconic hotel,
Prince de Galles, Paris under its upscale brand, The Luxury
Collection Hotels & Resorts. The hotel reopened following a
Situated in Avenue George V in Paris, the hotel enjoys
excellent positioning. Prince de Galles, Paris, which is famous
for its Parisian Art Deco (a visual art design usually used in
the 1930s and 1940s), has witnessed high footfall since its
opening in 1928. Starwood, in association with ERTIM Architectes
SA and two other world-renowned famous architects, Pierre-Yves
Rochon and Bruno Borrione, revamped the heritage hotel.
It is the last property that was scheduled to undergo a
restoration as part of a $200 million project. The company
initiated the refurbishment project to reinvigorate some of its
most renowned Luxury Collection branded properties in Europe. The
company has already revived Hotel Alfonso XIII in Seville and
Hotel Maria Cristina in San Sebastian in 2012 and Gritti Palace
in Venice in early 2013.
In a concerted effort to strengthen its position in a
cut-throat environment, most of the hoteliers have been striving
to improve guest satisfaction. Therefore, brand conversion and
renovation have become a trend.
Starwood, one of the leading players in the hotel industry, is
committed to refurbish most of its brands including W, The Luxury
Collection, Sheraton and Westin. Starwood is primarily focusing
on reviving its older properties operating in dynamic markets in
order to maintain consistency with the newer ones. Where
necessary, Starwood is also resorting to brand conversion via
It is also remodeling the Le Meridien branded hotels across
the world, for which it plans to invest about $3 billion in both
existing and new properties. Additionally, this Zacks Rank #3
(Hold) company also plans to inject an additional $1 billion into
the business to improve its total hotel portfolio.
Major hoteliers such as
Marriott International Inc.
Hyatt Hotels Corporation
InterContinental Hotels Group
) are also walking the same path. Renovation work, however, hurts
revenues in the near term when construction is on. But after
completion of the work, renovated properties are more rewarding
due to its improved services, which we believe is the main reason
for such back-to-back restoration projects by hoteliers.
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