Starwood Hotels & Resorts Worldwide, Inc. was one of the largest hotel operating companies in the world, owning, managing, and franchising hotels, resorts, spas, residences, and vacation ownership properties across approximately 100 countries. The company served both business and leisure travelers through a portfolio of brands spanning the ultra-luxury to upper-upscale segments, operating under the NYSE ticker HOT until its acquisition by Marriott International in September 2016.
Starwood’s origins trace back to 1969 when Hotel Investors Trust was established as a real estate investment trust. The company’s modern identity took shape in 1995 under Barry Sternlicht, who reorganized it through Starwood Capital Group and began building a branded hotel empire through aggressive acquisitions. By the time of the Marriott merger, the company had grown to 1,297 properties with 370,000 hotel rooms and had introduced some of the most recognized names in hospitality, including Sheraton, Westin, W Hotels, and St. Regis.
Beyond its hotel operations, Starwood ran a vacation ownership and residential segment through Starwood Vacation Ownership (formerly Vistana, Inc.), and operated the Starwood Preferred Guest (SPG) loyalty program, which became one of the most highly regarded frequent-traveler programs in the industry. According to Forbes, Starwood was consistently counted among the top 2,000 largest public companies in the world, and it appeared regularly on Fortune’s lists of America’s most admired companies.
Hotel Brands
Starwood operated across multiple distinct brand tiers, each targeting a different traveler segment. The company’s brand portfolio covered nine primary hotel brands at the time of the Marriott acquisition.
St. Regis
The company’s flagship ultra-luxury brand, offering butler service and bespoke experiences at select urban and resort locations worldwide.
The Luxury Collection
A curated portfolio of exceptional hotels and resorts in landmark destinations, many occupying historic palaces, converted estates, and culturally significant buildings.
Westin
Acquired from Aoki Corporation of Japan in 1994, Westin built a reputation around wellness-focused amenities and its Heavenly Bed product, introduced in 1999.
Sheraton
The largest brand in the Starwood portfolio by property count, with more than 60 years of history and a global footprint spanning most major cities and resort destinations.
W Hotels
Launched in 1999, W Hotels targeted a design-forward, lifestyle-oriented traveler. The brand opened in New York City and expanded rapidly into major global cities.
Le Méridien
Acquired by Starwood in 2005, Le Méridien traced its origins to Air France and operated primarily in Europe, the Middle East, and Asia. The brand expanded Starwood’s Asia Pacific footprint significantly.
Four Points by Sheraton
A mid-market offshoot of the Sheraton family targeting value-conscious business travelers with honest, no-frills comfort in urban and suburban locations.
Aloft
Announced in 2005, Aloft was designed as a tech-savvy, loft-inspired brand aimed at younger business travelers. The brand drew visual cues from W Hotels but at a lower price point.
Element
Announced in 2006 as Element by Westin, the brand focused on extended-stay travelers who prioritized sustainability. Element properties were designed to meet LEED certification standards.
History & Milestones
Hotel Investors Trust is founded as a real estate investment trust, the entity that will eventually become Starwood Hotels & Resorts Worldwide. The structure is designed to take advantage of REIT tax benefits while holding hotel properties across North America.
Starwood Lodging acquires the Westin Hotel Company from Aoki Corporation of Japan, adding one of the most prestigious hotel brands in North America to its portfolio. The deal brings Westin’s well-established network of upscale properties and strong corporate travel relationships.
Barry Sternlicht of Starwood Capital Group acquires and reorganizes the company, renaming it Starwood Hotels & Resorts. Sternlicht becomes chairman and CEO and begins executing an acquisition-led growth strategy.
In a transformational move, Starwood acquires the Sheraton, Four Points by Sheraton, and The Luxury Collection brands from ITT Sheraton in a deal valued at approximately $14.3 billion — at the time the largest hotel transaction in history. The acquisition makes Starwood one of the world’s largest hotel companies overnight.
Starwood launches its W Hotels brand with the opening of the W New York on Lexington Avenue. The brand introduces a design-forward, lifestyle-oriented concept that reshapes the upscale urban hotel market. The Starwood Preferred Guest (SPG) loyalty program also launches in 1999 with an industry-first no-blackout-dates redemption policy.
Founder and CEO Barry Sternlicht steps down from the CEO role to focus on Starwood Capital. He is succeeded by Steven J. Heyer. The company begins shifting its strategy away from owning hotel real estate toward becoming primarily a management company and franchisor — a move that would generate roughly $7.1 billion in proceeds from asset sales over the following decade.
Starwood acquires the Le Méridien brand, adding more than 120 properties located primarily in Europe, the Middle East, and Asia. The brand expands Starwood’s Asia Pacific footprint by approximately 30%. That same year, the Aloft brand is announced for future development.
CEO Steven J. Heyer departs the company at the board’s request following concerns about his management style and personal conduct allegations. Board chairman Bruce Duncan serves as interim CEO before Frits van Paasschen is named CEO in September.
The first Element hotel opens in Lexington, Massachusetts, becoming Starwood’s first brand built around sustainability and LEED certification. The global financial crisis hits the hospitality industry hard that year, with Starwood’s revenue declining noticeably from its 2007 peak.
Starwood announces plans to move its corporate headquarters from White Plains, New York to Stamford, Connecticut — a transition completed by early 2012. The company also navigates the deepest trough of the financial crisis, recording its lowest revenues of the decade.
Frits van Paasschen resigns as CEO in February by mutual agreement with the board. In May, Starwood announces a sale of its vacation ownership business (Vistana Signature Experiences) to Interval Leisure Group. That November, Marriott International announces a proposal to acquire Starwood, launching a bidding process that also draws competing interest from Hyatt Hotels and a Chinese consortium led by Anbang Insurance Group.
Marriott International completes its acquisition of Starwood Hotels & Resorts Worldwide on September 23, 2016 for approximately $13.6 billion — the largest hotel merger in history at that point. The deal creates a combined company with more than 5,700 properties and 30 hotel brands worldwide. The HOT ticker is delisted from the NYSE. The Starwood Preferred Guest program is eventually merged into Marriott’s loyalty platform in 2018.
Key Leadership
The architect of modern Starwood. Sternlicht acquired and reorganized the company through Starwood Capital Group in 1995 and served as chairman and CEO for nearly a decade. Under his leadership, Starwood completed the landmark ITT Sheraton acquisition in 1998, launched the W Hotels brand, and introduced the SPG loyalty program. He stepped down as CEO in 2004 to refocus on Starwood Capital Group, and left the board entirely in 2005. Sternlicht is widely credited with elevating the competitive bar for branded hotel design and guest experience during his tenure.
Van Paasschen guided Starwood through the recovery from the 2008–2009 financial crisis and oversaw a period of significant international expansion, particularly in Asia and the Middle East. He accelerated the company’s transition toward asset-light management and franchising and presided over the launch of Tribute Portfolio in 2015. He resigned by mutual agreement with the board in February 2015 ahead of the eventual sale process that led to the Marriott acquisition.
Revenue
The figures below represent total revenues as reported in annual filings, in USD billions, for fiscal years ending December 31. Revenue declined sharply during the 2008–2009 financial crisis before recovering through the early 2010s. The drop in 2015 partly reflects Starwood’s continued shift to asset-light operations as it sold owned hotels.
Market Capitalization
The chart below shows approximate year-end market capitalization values in USD billions. The severe drop in 2008 reflects the collapse in hotel valuations during the financial crisis. The stock recovered strongly into 2013–2014, aided by Starwood’s shift to higher-margin management and franchise revenues.
Major Acquisitions
Competitors
| Company | Ticker | Headquarters | Key Brands | Approx. Revenue* |
|---|---|---|---|---|
| Marriott International | MAR | Bethesda, MD | Marriott, Ritz-Carlton, Renaissance | ~$15.9B |
| Hilton Worldwide Holdings | HLT | McLean, VA | Hilton, DoubleTree, Hampton | ~$11.7B |
| InterContinental Hotels Group | IHG | Windsor, UK | IHG, Holiday Inn, Crowne Plaza | ~$3.8B |
| Hyatt Hotels Corporation | H | Chicago, IL | Hyatt Regency, Park Hyatt, Andaz | ~$6.6B |
| Wyndham Hotels & Resorts | WH | Parsippany, NJ | Wyndham, Ramada, La Quinta | ~$2.4B |
| Choice Hotels International | CHH | Rockville, MD | Comfort Inn, Quality Inn, Radisson | ~$1.6B |
| Accor S.A. | AC (EPA) | Paris, France | Fairmont, Sofitel, Novotel | ~€5.6B |
| Four Seasons Hotels & Resorts | Private | Toronto, Canada | Four Seasons (single brand) | Private |
| Best Western Hotels & Resorts | Private | Phoenix, AZ | Best Western, Best Western Plus | Private |
| Radisson Hotel Group | Private | Brussels, Belgium | Radisson, Radisson Blu, Park Inn | Private |
*Approximate revenues reflect recent figures as publicly available companies; private companies do not disclose revenues.
Frequently Asked Questions
When was Starwood Hotels & Resorts founded, and who founded it?
The predecessor entity, Hotel Investors Trust, was established in 1969 as a real estate investment trust. The company in its modern form was built by Barry Sternlicht of Starwood Capital Group, who acquired and reorganized it in 1995 under the Starwood Hotels & Resorts name. Sternlicht served as chairman and CEO through 2004 and is generally regarded as the company’s founder in its hotel brand incarnation.
What brands did Starwood Hotels operate?
At its peak, Starwood operated nine primary hotel brands: St. Regis (ultra-luxury), The Luxury Collection (unique luxury properties in landmark destinations), Westin (wellness-focused upper upscale), Sheraton (largest brand by count, full-service upper upscale), W Hotels (design-forward lifestyle), Le Méridien (European heritage, international focus), Four Points by Sheraton (upscale select service), Aloft (tech-forward select service), and Element (extended stay, sustainability-focused). The company also had an investment in Design Hotels, a network of independently owned boutique properties.
What was the Starwood Preferred Guest (SPG) program?
SPG launched in 1999 and became one of the most respected hotel loyalty programs in the industry, known for its no-blackout-dates redemption policy and a generous points structure. Members could earn and redeem points across all nine Starwood brands and transfer points to more than 30 airline partners. In 2014, Starwood introduced SPG Pro for business-to-business customers who booked hotels on behalf of clients. Following the Marriott acquisition, SPG was formally merged with Marriott Rewards and Ritz-Carlton Rewards on August 18, 2018 to form the Marriott Bonvoy program.
Why did Marriott International acquire Starwood?
Marriott announced its intent to acquire Starwood in November 2015 in a deal that combined the two largest U.S.-based hotel companies. The merger was driven by the strategic logic of scale — the combined entity would have more than 1.1 million rooms worldwide, giving it substantially greater negotiating leverage with online travel agencies, lower per-room technology and distribution costs, and a loyalty program with more than 100 million members. The deal also gave Marriott immediate access to Starwood’s luxury and upper-upscale brand portfolio in international markets where Starwood had historically been stronger. Competition for the deal included a bid from a Chinese consortium led by Anbang Insurance Group, which ultimately did not prevail.
What happened to Starwood’s vacation ownership business?
Starwood announced in February 2015 that it would spin off its vacation ownership operations as a separate publicly traded company. In May 2016, just before the Marriott acquisition closed, Starwood completed the sale of Vistana Signature Experiences — the rebranded vacation ownership unit — to Interval Leisure Group for approximately $1.5 billion. Vistana continued to operate as a licensee of Starwood’s hotel brands under a long-term agreement, and has since passed into the Marriott Vacations Worldwide ecosystem following subsequent industry consolidation.
*Information from Forbes.com and Wikipedia.org.
**Video published on YouTube by “Starwood Vids“.