Starwood Hotels & Resorts Worldwide knows how to shine a light on hospitality. One of the world's largest hotel companies, it has about 1,125 properties in about 100 countries. Starwood's hotel empire consists of upscale brands such as Sheraton and Westin. It operates about 100 luxury resorts and hotels through its St. Regis and Luxury Collection units, while its 40 W Hotels offer ultra-modern style. Other brands include Four Points (value-oriented), Le Méridien (European-inspired), Aloft (select-service), and Element (extended stay). Starwood Vacation Ownership operates about 15 time-share resorts. In 2015 Marriott agreed to acquire Starwood for about $12.2 billion.
Starwood is focused on international expansion. The dramatic economic growth in Asia, Europe, Latin America, the Middle East, and Africa is fueling demand for Starwood's brands worldwide.
The company manages and operates hotel business in three separate hotel segments: the Americas; Europe, Africa, and the Middle East (EAME); and Asia Pacific.
Sales and Marketing
Starwood's loyalty program, "Starwood Preferred Guest", is a frequent guest incentive marketing program, allowing members to earn and redeem points for room stays, room upgrades, and flights. Starwood uses multi-media advertising campaigns, including television, radio, internet, and print advertisements to drive guests to its properties.
Starwood’s revenue decreased in fiscal 2014 compared to fiscal 2013. Starwood reported about $5.98 billion in revenue for fiscal 2014 compared to $6.1 billion in fiscal 2013. The company’s profits also decreased in fiscal 2014 compared to the previous year. Starwood reported a net income of $633 million for fiscal 2014 after claiming a net income of $635 million for fiscal 2013.
Starwood is focused on growth in Africa, China, Europe, India, South Asia, and Latin America. The company expects to have 100 hotels under operation in the Asia Pacific region by 2015. Starwood also plans to increase its operating hotel footprint in Latin America by 50% during the next five years, opening an average of seven new hotels per year in the region. Starwood continues to expand in Europe as well, where it expects to open more than 60 new hotels and resorts across by 2020.
Mergers and Acquisitions
The merger with Marriott will create the world's biggest hotel company with more than 5,500 hotels and about 1.1 million rooms in some 100 countries worldwide. The deal is expected to close in mid-2016.