Starwood Hotels & Resorts Worldwide Inc. plans to double its portfolio in Russia with seven new hotels.
Currently Starwood owns five hotels in Russia and the Commonwealth of Independent States. Three were opened last year.
Over the next few years, more than 70 percent of the world”™s economic growth is predicted to come from fast-growing markets, Starwood said in a statement, noting Russia is a key emerging market, as well as the Ukraine and Tajikistan, which are also development sites for the Stamford-based hotel giant.
“As one of the world”™s fastest-growing outbound travel markets, Russia represents a great opportunity for us,” Starwood CEO Frits van Paasschen said in a press release. “With a rising middle class, growing disposable income, an affinity for luxury brands and huge pent-up demand for foreign travel, Russia is emblematic of the growth we are seeing in regions around the world and key to our global growth plans.”
The company will be using its most recognized brand, Sheraton, to enter the markets, the company said.
“Moscow has more billionaires than any other city in the world and yet Russia is seriously under-hoteled, with only 28 high-end hotels,” said Simon Turner, Starwood president of global development and acquisition, in the release. “Russia and CIS offer tremendous growth opportunities, especially within markets that do not have major internationally-branded hotels. We plan to expand our brands throughout the region in the years to come with development partners who have a proven track record of success and are looking for a new and exciting growth vehicle.”
