STARWOOD Hotels & Resorts Worldwide is strengthening its position as the leading hotel operator across the Middle East and Africa (MEA) region with an existing portfolio of 82 hotels, representing nearly 22,000 guest rooms, the majority of which are operated under Starwood’s world-renowned Sheraton and Le Méridien brands.
The company announced that it will increase its MEA portfolio by more than 60 per cent with nearly 50 new hotels set to open over the next five years, adding more than 14,000 guest rooms to the region while creating thousands of local employment opportunities. With over 20 hotels expected to open by the end of 2015, Starwood is on track to reach a milestone 100 hotels across MEA.
“Starwood continues to see demand for growth of all of our brands across the Middle East and Africa despite economic and political uncertainty in some parts of this incredibly diverse region,” said Frits van Paasschen, president and CEO, Starwood Hotels & Resorts. “Rapid economic growth, rising personal incomes, a growing middle class and ever greater global connectivity are driving new travel patterns and demand for travel, and this region is at the center of these trends and a key focus of our growth strategy.”
Starwood is focused on expansion in developing MEA markets such as the UAE, KSA, Algeria, Egypt, Senegal, South Africa and Nigeria. The company is also focused on growth opportunities in key emerging markets including Iraq, Pakistan, Angola, Ghana, the Ivory Coast and East Africa.
By 2017, Starwood will operate more than 130 hotels in MEA, marking some key milestones, including portfolio growth of over 60 per cent in the UAE with 12 new hotels, including six in Dubai and further expansion into Sharjah and Ajman; rapid expansion across Saudi Arabia with six new hotels slated to open by 2015 bringing Starwood’s portfolio to 15 hotels in this key developing market; the re-entry of Starwood into Iraq with the milestone signings of three hotels across three brands in the city of Erbil; momentum in Nigeria with two new Starwood hotels, under the Four Points by Sheraton brand; addition of two new hotels in Algeria with a new Sheraton hotel in Annaba and Four Points by Sheraton in Oran and the launch of Starwood’s Aloft Hotels brand in Saudi Arabia and Iraq. Aloft will also open its second property in the UAE in emirates of Sharjah.
In 2011, the company introduced its ultra-luxury St Regis Hotels & Resorts brand in the region with properties in Doha, Abu Dhabi and Mauritius and two more in the pipeline; a second property in Abu Dhabi and Cairo.
Starwood is also seeing rapid growth of its contemporary, design-led W Hotels brand with plans to open six more W Hotels across MEA in key markets, including three in Dubai and one each in Abu Dhabi, Muscat and Amman by 2017.
In addition to new hotel openings, Starwood is seeing increasing opportunities for hotel conversions in MEA. In the past ten months, Starwood has signed three conversion deals in the region, including Sheraton Dubai Mall of the Emirates, which opened last month. The company is also focused on upgrading its existing portfolio of hotels in the region, primarily under the Sheraton and Le Méridien brands.