Starwood Hotels & Resorts Worldwide knows how to shine a light on hospitality. One of the world's largest hotel companies, it has nearly 1,300 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 2016 Marriott acquired Starwood for about $13.3 billion.
Change in Company Type
In 2016 Marriott International and Starwood Hotels and Resorts merged. With the addition of Starwood’s portfolio, Marriott became the largest hotel company in the world.
The company manages and operates hotel business in three separate hotel segments: the Americas; Europe, Africa, and the Middle East; and Asia/Pacific.
Starwood is focused on international expansion. The dramatic economic growth in Africa, Asia, Europe, Latin America, and the Middle East is fueling demand for Starwood's brands worldwide.
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 multimedia advertising campaigns, including television, radio, internet, and print advertisements to drive guests to its properties.
Starwood's revenue decreased by 4% in fiscal 2015 compared to the prior fiscal period. The company reported $5.76 billion in revenue for fiscal 2015 after bringing in $5.9 billion the previous year.
Its net income was $489 million in fiscal 2015, which was a decrease of almost 25% compared to fiscal 2014. Starwood ended fiscal 2015 with $890 million in cash on hand.
Starwood 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
Starwood's merger with Marriott closed in late 2016.