Starwood Hotels & Resorts Worldwide, Inc. 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 will increase its MEA portfolio by more than 60% 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. Further underscoring the importance of the region as one of Starwood’s fastest growing hotel and travel markets, earlier this month the company relocated its global headquarters from Stamford, Connecticut to Dubai for a month-long immersion.
“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,” Frits van Paasschen, President and CEO, Starwood Hotels & Resorts, said.
“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.”
With more than 70% of the world’s economic growth coming from fast-growing markets over the next few years, Starwood is focused on expansion in developing MEA markets such as the United Arab Emirates (UAE), Saudi Arabia, 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.
“Our long-established presence, local teams, and strong relationships in the region remain a competitive advantage, and position us well to take advantage of the many opportunities for future growth,” Simon Turner, President of Global Development & Acquisition, Starwood Hotels & Resorts, said.
“We have a healthy pipeline of new hotels under development in the Middle East and Africa, and expect our growth to continue in 2013 as we look to expand in markets including the UAE, Saudi Arabia and Nigeria.
“Thanks to Starwood’s nearly 50 year history in the MEA region and the proven strength of our brands, the company is well positioned to take full advantage of growth,” Roeland Vos, President of Starwood Hotels & Resorts, Europe, Africa and Middle East, said. “We are seeing a large landscape of independent hotels ripe for flags in the region and we expect to capture more than our fair share of conversion opportunities across all of our brands. The recent conversion of the Sheraton Dubai Mall of the Emirates is a testament of this strategy.”
“With 80% of Starwood’s pipeline coming from rapidly growing markets, it is simply not possible to lead a truly global business from a boardroom in Connecticut,” van Paasschen, said.
“Dubai epitomizes the changing face of travel, and we expect this relocation will deepen our relationships with partners, associates and customers. The insights that come from experiences like this move make us more agile in today’s rapidly changing world.”
The Central London development market experienced heightened levels of activity during 2012 that saw sales and construction hit post-crisis peaks say Jones Lang LaSalle in latest residential market research. And these strong levels of activity look set to continue through 2013.
In 2012, over 7,300 new units exchanged in central London, a 50% increase year-on-year and the highest number recorded since the financial crisis. Looking at Q1 2013, there stands to be a further improvement but the research shows that rates of sale in Central London were already improving steadily throughout the course of 2012.
“The prominence of overseas buyers has undoubtedly been a driving force for this market. They are increasingly knowledgeable and are coming from a more diverse global network. Asia-Pacific purchasers are still leading the pack but we are seeing others from areas such as the Middle-East and Turkey following closely in their footsteps. But we must also not underestimate the activity from the domestic UK market. 2012 saw an increase in activity from UK purchasers and this positive upswing looks set to continue into 2013 as levels of interest are only set to increase,” Peter Murray, Lead residential director at Jones Lang LaSalle, said.
The number of units launched in 2012 was also significantly higher – 6,800 in 2012 compared to 5,600 in 2011 with Core locations experiencing even higher levels of growth. Importantly, this increase in launch and sales activity has led to a steady contraction in the number of unsold units as demonstrated below.
Although this rise in activity looks promising, we are still a long way from the boom levels of the mid-2000s. Conditions are encouraging but polarisation between core and outer core markets is still evident with some schemes reporting exceptionally high levels of sales while interest at others has been minimal.
“It is all down to location and quality of product. Demand for schemes in Core locations with good transport links and proximity to central London continue to do well. While overall activity in this market looks encouraging, developers must assess their options carefully,” Murray, said.