Starwood Hotels & Resorts Worldwide Inc (NYSE:HOT) growth driven by new hotel...

Starwood Hotels & Resorts Worldwide Inc (NYSE:HOT) growth driven by new hotel deals

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Starwood Hotels & Resorts Worldwide Inc (NYSE:HOT) reported a healthy growth rate for the first five months of 2015, helped by new hotel signings in North America followed by surge in the building activity.

The Chief Executive Officer of Starwood Hotels Frits van Paasschen left the company earlier this year amid the company was grappling with low growth margins. The resignation of CEO raised rumors that Starwood may put itself for sale. But last month the company announced that it is seeking means to up lift its position in market, by either possibly buying other hotels or divestiture any of its Hotel brands.

Based on statement given by Starwood on Friday, so far in the current year new deals in hotel segment have surpassed the new deal signings record in the first five months of 2008. Starwood further added that growth at its worldwide hotels is keeping up with healthy pace and nearly 40 percent of the new hotel signings were attributable to North America in this year. Starwood also aims to set up more hotels in Europe this year.

Starwood is also muscling up its efforts to up surge in the limited-service hotel market, as the firm isn’t a strong player in midmarket sector, losing its ground to midmarket brands rivals like Courtyard by Marriott and Hilton Garden Inn, which have grabbed most of their profit from this area. Aloft, Four Points and Element hotels accounted for almost company’s half of the new hotel inaugurations last year. In the current year the company has added 13 new hotels in its portfolio thus far and announced that it would further open at least 30 more hotels.

The company also said that it plans to open more luxury hotels in the current year. While looking at the Starwood’s current focus, about 75 percent of the Starwood’s hotel brands are only built for hi-profile persons or organizations, including St. Regis and W Hotels brands.

Sheraton, a global five star hotel brand, continues to be the company’s best hotel, according to Starwood. The brand is gaining popularity among Chinese people. The firm is also planning to further strengthen the Sheraton brand.

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