14 March 2005
In an exclusive interview with Jamie Etheridge, Executive Editor, Kuwait Times, Philippe Cassis, Senior Vice-president and Regional Director for the Africa and Middle East Region of Starwood Hotels & Resorts, spoke at length about his Group's global brands, market share and its vision for the future, with special focus on its investment strategy for the Middle East, the Gulf region and Kuwait.
Q: What makes investing in Starwood Hotels profitable and attractive?
A: Starwood's competitive edge is further powered by its innovation; historically low competitive supply growth; strong margins and profitability; diverse engines of growth; Starwood's proprietary technology which drives sales, marketing and e-commerce; and Starwood Preferred Guest, the Company's award winning loyalty programme. In the Middle East, Sheraton has successfully established a success record; and it's the most widespread and established brand in the region. We have almost 40 years experience in the region. We were the first international hotel operator to enter the Middle East with the opening of Sheraton Kuwait in 1966. With the opening of Sheraton Tunis in December 2003, Sheraton is now the first hotel chain to establish presence in all major city hubs in the Middle East and North Africa; and has established the highest brand recognition in the market.
Q: How would you describe the strategic impact of Starwood brands and how are they positioned in the market place?
A: There is tremendous history, presence and weight in the Starwood brands. We have worked hard to create emotional content for our brands to get the incremental purchase and to create recognition. Starwood's upscale and luxury brands continue to capture market share from competitors by aggressively cultivating new customers while maintaining loyalty among the world's most active travellers. The strength of the company's brands is evidenced, in part, by the superior ratings received from the company's hotel guests and from industry publications. In 2004, Starwood has earned the distinction of having 51 of its hotels and resorts included on Conde Nast Traveler's prestigious Gold List and Gold List Reserve featured in the magazine's January 2005 issue. The leadership of Starwood's brands is powered by their clear individuality and well-defined personalities; strong identities; innovations, commitment to customer satisfaction; and their singular presence in prime locations worldwide, clear of brand saturation.
Q: What is Starwood? What is its history, its hotel chains and its place in the global hotel industry?
A: Starwood is one of the world's largest hotel and leisure companies. Starwood's status as one of the leading hotel and leisure companies resulted from the 1998 acquisitions of Westin Hotels & Resorts Worldwide, Inc and certain of its affiliates ("Westin") (the "Westin Merger") and ITT Corporation (the "ITT Merger"), renamed Sheraton Holding Corporation ("Sheraton Holding") and the 1999 acquisition of Vistana Inc (renamed Starwood Vacation Ownership, Inc or "SVO"). The Company's brand names include St Regis, The Luxury Collection, Sheraton, Westin, W and Four Points by Sheraton. Through these brands, Starwood is well represented in most major markets around the world. The Company's operations are grouped into two business segments, hotels and vacation ownership operations. The Company's hotel business emphasises the global operation of hotels and resorts primarily in the luxury and upscale segment of the lodging industry. With more than 750 properties in more than 80 countries, Starwood's competitiveness lies in the power and the diversity of its brands, global market share, revenue sources and geographic locations which provide a broad base from which to enhance revenue and profits and to strengthen the company's global brands. Starwood's competitive edge is further powered by its operational excellence and inspirational service.
Q: What is Starwood's vision for the future and for the Middle East, Gulf region and Kuwait?
A: Our development momentum continues to be strong and we've won more than our share of hotel deals. In 2005 and 2006, Starwood will open more than 70 new hotels in choice destinations around the globe. Nearly half of these new hotels are outside of the United States. Our W and St Regis brands are very sought after by the development community and Westin was actually the world's fastest growing upper upscale brand in 2004 and is a terrific growth vehicle with lots of opportunities. Sheraton is perhaps the most global brand in its category and its international pipeline is quite robust. Our moderately priced Four Points by Sheraton brand still has plenty of room to grow, and we continue to aggressively expand the brand. Regionally, we continue to leverage the potential of these brands in key growth locations. Few months ago, we opened the Four Points Le Verdun, our third property in Lebanon and the second in the capital Beirut. The hotel is conveniently located in the fashionable Verdun area in Beirut; and offers 132 guest-rooms and suites, a French-Fusion cuisine restaurant, rooftop heated pool, health club, massage, business services, a first class Executive Boardroom; and two meeting rooms. By mid 2005, we also expect to open Sheraton Oran in Algeria, our second property in Algeria, since the opening of Sheraton Club des Pins in the Algerian capital in 1999. Sheraton Oran is the first international hotel to operate in the city of Oran. It is situated on a six-acre cliff-top overlooking the Mediterranean and only 10 minutes from the city centre. The hotel will offer 321 rooms, three restaurants, large meeting and conference space including a main ballroom accommodating up to 850 guests. Towards the last quarter of 2005, we will open our third property in Syria, Sheraton Aleppo Hotel & Towers, which again will be the first internationally managed hotel in Aleppo. The hotel will offer 218 rooms and suites; three restaurants, swimming pool, health club, and over 1,000 square meters of meeting space. In addition to business centre services and large shopping arcade. Construction is also underway in Egypt for a new luxury hotel next to the Sheraton Heliopolis Hotel. The new hotel will offer 250 luxury rooms and suites, an international conference centre with seating capacity for 1,700 people, and a fashionable spa and beauty centre with internal and external pools. Construction works are expected to be completed by early 2006.
Q: Do you believe that Kuwait market has the capacity to uphold further hotels to the ones existing?
A: I believe there are positive indicators driven by the economic growth in Kuwait, which has increased the number of hotels. Despite suggestions that this growth is likely unsustainable, it is likely to encourage hotel investment. The hotel sector in Kuwait expects 500 new more rooms in 2005, and if all these hotels were to be built, the country will have a total of 22,000 rooms in the next five years. It's definitely a positive outlook.
Q: With many new hotels and brands entering the market, how does the Sheraton sustain its competitive positioning?
A: I have a favourite sayings "in order to walk, you need to keep running". This is so true in our industry. With the increasing number of hotel operators and new brands entering the market, it does take a lot to maintain leadership. Sheraton's first entrance to the Middle East region through Sheraton Kuwait, back in 1966, had a great impact on the outstanding brand positioning and leadership in the whole region. Sheraton Kuwait has been a market leader for almost 40 years now. This is an unprecedented achievement in the industry; and has definitely contributed to the success record of the brand else where in the region. I believe two standards in our operation are inevitable to ensure brand leadership, product quality and service standards. Between 1998 and 2001, over $ 1.7 billion were spent on Sheraton refurbishment internationally. Sheraton leadership came through its commitment to being competitively innovative, merging outstanding design with the requisites of operations and economics. From handsome lifestyle signature looks to distinctive Club Lounges and flat screen TVs, Sheraton is completely in tune with the sophisticated preferences of today's travellers, making these hotels an industry leader in the upscale segment - with a solid prominence in the marketplace.
Q: Does Starwood intend to expand its brand portfolio in the region? And what are your strategic criteria?
A: With the great dominance of the Sheraton brand in the region, we are now focusing on introducing and expanding our brands to the region. We see great opportunities following the tremendous growth in the industry and the interest of the investors to focus on the region. In our pursuit to identify expansion opportunities, we investigate market conditions and future market prospects, assess the cultural environment to ensure brand compatibility, and pursue strategic partnership with the investment community to add brand value and achieve return on investment. Our divisional team for Europe, Africa and Middle East will participate this year in the first Arabian Hotel Investment Conference which will be held in Dubai in April. This will be an ideal meeting point for both the industry leaders and the investment community to share their vision and experience on the future of tourism in the region.
In an exclusive interview with Jamie Etheridge, Executive Editor, Kuwait Times, Philippe Cassis, Senior Vice-president and Regional Director for the Africa and Middle East Region of Starwood Hotels & Resorts, spoke at length about his Group's global brands, market share and its vision for the future, with special focus on its investment strategy for the Middle East, the Gulf region and Kuwait.
Q: What makes investing in Starwood Hotels profitable and attractive?
A: Starwood's competitive edge is further powered by its innovation; historically low competitive supply growth; strong margins and profitability; diverse engines of growth; Starwood's proprietary technology which drives sales, marketing and e-commerce; and Starwood Preferred Guest, the Company's award winning loyalty programme. In the Middle East, Sheraton has successfully established a success record; and it's the most widespread and established brand in the region. We have almost 40 years experience in the region. We were the first international hotel operator to enter the Middle East with the opening of Sheraton Kuwait in 1966. With the opening of Sheraton Tunis in December 2003, Sheraton is now the first hotel chain to establish presence in all major city hubs in the Middle East and North Africa; and has established the highest brand recognition in the market.
Q: How would you describe the strategic impact of Starwood brands and how are they positioned in the market place?
A: There is tremendous history, presence and weight in the Starwood brands. We have worked hard to create emotional content for our brands to get the incremental purchase and to create recognition. Starwood's upscale and luxury brands continue to capture market share from competitors by aggressively cultivating new customers while maintaining loyalty among the world's most active travellers. The strength of the company's brands is evidenced, in part, by the superior ratings received from the company's hotel guests and from industry publications. In 2004, Starwood has earned the distinction of having 51 of its hotels and resorts included on Conde Nast Traveler's prestigious Gold List and Gold List Reserve featured in the magazine's January 2005 issue. The leadership of Starwood's brands is powered by their clear individuality and well-defined personalities; strong identities; innovations, commitment to customer satisfaction; and their singular presence in prime locations worldwide, clear of brand saturation.
Q: What is Starwood? What is its history, its hotel chains and its place in the global hotel industry?
A: Starwood is one of the world's largest hotel and leisure companies. Starwood's status as one of the leading hotel and leisure companies resulted from the 1998 acquisitions of Westin Hotels & Resorts Worldwide, Inc and certain of its affiliates ("Westin") (the "Westin Merger") and ITT Corporation (the "ITT Merger"), renamed Sheraton Holding Corporation ("Sheraton Holding") and the 1999 acquisition of Vistana Inc (renamed Starwood Vacation Ownership, Inc or "SVO"). The Company's brand names include St Regis, The Luxury Collection, Sheraton, Westin, W and Four Points by Sheraton. Through these brands, Starwood is well represented in most major markets around the world. The Company's operations are grouped into two business segments, hotels and vacation ownership operations. The Company's hotel business emphasises the global operation of hotels and resorts primarily in the luxury and upscale segment of the lodging industry. With more than 750 properties in more than 80 countries, Starwood's competitiveness lies in the power and the diversity of its brands, global market share, revenue sources and geographic locations which provide a broad base from which to enhance revenue and profits and to strengthen the company's global brands. Starwood's competitive edge is further powered by its operational excellence and inspirational service.
Q: What is Starwood's vision for the future and for the Middle East, Gulf region and Kuwait?
A: Our development momentum continues to be strong and we've won more than our share of hotel deals. In 2005 and 2006, Starwood will open more than 70 new hotels in choice destinations around the globe. Nearly half of these new hotels are outside of the United States. Our W and St Regis brands are very sought after by the development community and Westin was actually the world's fastest growing upper upscale brand in 2004 and is a terrific growth vehicle with lots of opportunities. Sheraton is perhaps the most global brand in its category and its international pipeline is quite robust. Our moderately priced Four Points by Sheraton brand still has plenty of room to grow, and we continue to aggressively expand the brand. Regionally, we continue to leverage the potential of these brands in key growth locations. Few months ago, we opened the Four Points Le Verdun, our third property in Lebanon and the second in the capital Beirut. The hotel is conveniently located in the fashionable Verdun area in Beirut; and offers 132 guest-rooms and suites, a French-Fusion cuisine restaurant, rooftop heated pool, health club, massage, business services, a first class Executive Boardroom; and two meeting rooms. By mid 2005, we also expect to open Sheraton Oran in Algeria, our second property in Algeria, since the opening of Sheraton Club des Pins in the Algerian capital in 1999. Sheraton Oran is the first international hotel to operate in the city of Oran. It is situated on a six-acre cliff-top overlooking the Mediterranean and only 10 minutes from the city centre. The hotel will offer 321 rooms, three restaurants, large meeting and conference space including a main ballroom accommodating up to 850 guests. Towards the last quarter of 2005, we will open our third property in Syria, Sheraton Aleppo Hotel & Towers, which again will be the first internationally managed hotel in Aleppo. The hotel will offer 218 rooms and suites; three restaurants, swimming pool, health club, and over 1,000 square meters of meeting space. In addition to business centre services and large shopping arcade. Construction is also underway in Egypt for a new luxury hotel next to the Sheraton Heliopolis Hotel. The new hotel will offer 250 luxury rooms and suites, an international conference centre with seating capacity for 1,700 people, and a fashionable spa and beauty centre with internal and external pools. Construction works are expected to be completed by early 2006.
Q: Do you believe that Kuwait market has the capacity to uphold further hotels to the ones existing?
A: I believe there are positive indicators driven by the economic growth in Kuwait, which has increased the number of hotels. Despite suggestions that this growth is likely unsustainable, it is likely to encourage hotel investment. The hotel sector in Kuwait expects 500 new more rooms in 2005, and if all these hotels were to be built, the country will have a total of 22,000 rooms in the next five years. It's definitely a positive outlook.
Q: With many new hotels and brands entering the market, how does the Sheraton sustain its competitive positioning?
A: I have a favourite sayings "in order to walk, you need to keep running". This is so true in our industry. With the increasing number of hotel operators and new brands entering the market, it does take a lot to maintain leadership. Sheraton's first entrance to the Middle East region through Sheraton Kuwait, back in 1966, had a great impact on the outstanding brand positioning and leadership in the whole region. Sheraton Kuwait has been a market leader for almost 40 years now. This is an unprecedented achievement in the industry; and has definitely contributed to the success record of the brand else where in the region. I believe two standards in our operation are inevitable to ensure brand leadership, product quality and service standards. Between 1998 and 2001, over $ 1.7 billion were spent on Sheraton refurbishment internationally. Sheraton leadership came through its commitment to being competitively innovative, merging outstanding design with the requisites of operations and economics. From handsome lifestyle signature looks to distinctive Club Lounges and flat screen TVs, Sheraton is completely in tune with the sophisticated preferences of today's travellers, making these hotels an industry leader in the upscale segment - with a solid prominence in the marketplace.
Q: Does Starwood intend to expand its brand portfolio in the region? And what are your strategic criteria?
A: With the great dominance of the Sheraton brand in the region, we are now focusing on introducing and expanding our brands to the region. We see great opportunities following the tremendous growth in the industry and the interest of the investors to focus on the region. In our pursuit to identify expansion opportunities, we investigate market conditions and future market prospects, assess the cultural environment to ensure brand compatibility, and pursue strategic partnership with the investment community to add brand value and achieve return on investment. Our divisional team for Europe, Africa and Middle East will participate this year in the first Arabian Hotel Investment Conference which will be held in Dubai in April. This will be an ideal meeting point for both the industry leaders and the investment community to share their vision and experience on the future of tourism in the region.
Kuwait Times 2005
