Barry Sternlicht Revives Starwood Hotels With Global Expansion Plans
Barry Sternlicht is launching a new hotel business, but it’s got an old name.
The billionaire investor who made his name in hospitality is bringing back Starwood Hotels, the brand that sold to Marriott International for more than $12B in 2015. The resurrected brand will include three chains owned by Sternlicht, with plans to build its portfolio to 22 locations by 2029.
Sternlicht has spent the last decade leading Starwood Capital, the Miami-based private equity firm with roughly $115B in assets, including hotels. But Sternlicht, 64, told The New York Times that he wanted to once again go beyond just managing money.
“I’m kind of like a singer having one song,” he told the paper. “I want to have two songs.”
Starwood Capital declined a request for comment beyond what was published in the Times.
Sternlicht already has three hotel brands, the high-end Baccarat, the eco-conscious 1 Hotels, and Treehouse, which he told the Times is focused on vintage stylings to remind travelers of their childhood. At least one more brand is in the planning stages, he said.
He has already grown the portfolio to 14 hotels in five countries. The development pipeline includes 1 Hotels in Austin, Seattle and Crete, Greece. Treehouse hotels are planned for Miami and Manchester, UK, while Baccarats are planned in Dubai, Rome and the Maldives, according to the Times.
Sternlicht said he would consider selling a portion of the resurrected Starwood Hotels to raise money for further international expansion, but he said he had no intention of selling the company.
The first iteration of Starwood Hotels grew to more than 1,300 properties in 100 countries when Marriott acquired it. The company spawned the W brand in 1998, four years after acquiring Westin, and also operated under the St. Regis flag.
Sternlicht stepped down as the firm’s executive chairman in 2005.
The hotel sector has found its footing after the pandemic temporarily upended work and leisure travel patterns.
JLL projects revenue per available room to grow by between 3% and 5% in 2025, roughly in line with last year's growth. Analysts expect domestic travel to be stronger in 2025 than last year, and the National Travel and Tourism Organization forecasts a 10% increase in international travelers in 2025 to 85 million.
JLL projects hotel investment to grow by 15% to 25% year-over-year.
“With moderate revenue growth predicted for 2025, lower cost of capital and increased spending power, the year is widely expected to be a pivotal one for U.S. hotels,” D. Michael Daniel, who covers hospitality at Integra Realty Resources, wrote in a recent report.
