Starwood expansion focuses on India

Calcutta News.Net
Friday 11th December, 2009

Starwood Hotels & Resorts has opened the doors of The Westin Pune Koregaon Park, the first of six new Westin Hotels to open in India over the next three years.

It is also the 25th Westin hotel to open in the Asia Pacific. Despite the expansion the U.S.-based group expects to expand further, by 60% between now and 2012.

“As home to the world’s fastest growing population, India represents a significant opportunity for Starwood ,” Frits van Paasschen, President and CEO of Starwood Hotels & Resorts Worldwide, said Friday

India makes up 21% percent of the world’s incremental growth, and by 2016, its population is expected to be larger than that of Europe, Russia, Australia, New Zealand, Japan, Canada and the United States combined.

“Coinciding with its population boom is the rise of India’s middle class, which is driving domestic tourism growth. In this decade, disposable income in India has grown about 10% annually, and much of that is being spent on travel,” said van Paasschen.

This year, Starwood opened the Four Points by Sheraton brand in Mumbai and Jaipur. And looking ahead to 2010, the company will launch its Aloft brand in India, opening the first three of six hotels under development.

“India’s dynamic and resilient economy makes it a highly attractive choice for further hotel development,” Miguel Ko, Chairman and President of Starwood Asia Pacific said Friday. “India has a strong GDP growth rate, an established role as global hub for the outsourcing industry and the infrastructure to support travel to and within the country. And with our plans to grow our footprint by 60% in the next three years, we are well positioned to meet the pent-up demand for our brands throughout India.”

While India is a growth powerhouse in and of itself, when combined with China, the implications for Starwood are even farther reaching.

“The potential numbers of new international travelers from India and China are staggering,” Simon Turner, President of Global Development for Starwood said. “When you take a look at India and China, you have 40% of the world’s population, and between them, they are averaging 8% growth in GDP. Furthermore, by 2015, 400 million Chinese and Indians will have sufficient incomes to travel abroad – as a point of perspective that is seven times the number of international travelers who visited the United States last year.”

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