ADDIS ABABA, ETHIOPIA—Starwood Hotels & Resorts Worldwide, Inc. revealed aggressive expansion in Africa and Indian Ocean, increasing its market penetration across the region.
According to the company, the brand has a strong footprint with 34 operating hotels and a robust pipeline of 20 hotels under development. With the expansion of its luxury, upper-upscale and midmarket brands, Starwood will grow its portfolio by more than 50% in the next five years, with 50 or more hotels operating and nine out of its 10 lifestyle brands flying their flag in the region.
“The momentum of growth we are seeing in Africa today is unprecedented. It is a reiteration of the trust our owners have in us, the power of our distinct lifestyle brands and the strength of our global distribution and award-winning loyalty program,” said Michael Wale, president for Starwood, Europe, Africa and Middle East. “Africa is a market with huge potential. With economic growth, a rising middle class and rapid urbanization, the demand for travel and quality lodging will continue to grow and provide us with a significant opportunity to grow our brands and play our part in supporting many emerging markets across the continent.”
Reaffirming its commitment to growth in the region, the company announced seven new deals, including W Sharm El Sheikh and The Residences at W Sharm El Sheikh in Egypt; Sheraton Bamako in Mali; The Westin Abuja and Residences in Nigeria; Four Points by Sheraton Abuja and Residences in Nigeria; Four Points by Sheraton Nairobi Airport in Kenya; Aloft Dakar in Senegal; and Element Oyster Bay Dar es Salaam in Tanzania. With the new signings Starwood will further build its position in Nigeria and Egypt, increase its presence in Senegal and enter new markets, which include Mali, Kenya and Tanzania.
“Franchising has opened up new opportunities for us and is a strategy that is helping drive growth of our mid-market brands. We are also beginning to see more and more opportunities for conversion and are pursuing them actively. We are confident that this will give further impetus to our growth trajectory,” said Neil George, SVP acquisition & development, Starwood Hotels & Resorts, Africa & Middle East. “We remain focused on choosing the right partner, and the right brand in established, emerging as well as unexplored but interesting destinations.”
Following the launch of its 10th brand earlier this year, Tribute Portfolio, the company is also actively pursuing opportunities to introduce the brand in Africa and Indian Ocean.