Marriott CEO Comments About Resurrection Of Starwood

The former head of Starwood Hotels, Mr. Barry Sternlicht, dropped a bomb late last month when he announced that he was bringing the brand back to life on a New York Times piece (read more here).

It was not clear back then what exactly Marriott had purchased when it acquired Starwood Hotels because they used to be under Starwood Capital, a much older company that Mr. Sternlicht runs and which will revive this iconic and still much-loved brand.

You can access Starwood Hotels here.

Marriott CEO Mr. Capuano shed some light on the resurrection of Starwood Hotels and how they don’t see it as a threat to them.

Here’s what Marriott CEO Shared at a recent conference and published by Hotel New Now:

The return of Starwood

When Marriott acquired Starwood Hotels & Resorts and its portfolio of brands in 2016, Starwood-founder Barry Sternlicht retained the Starwood name, Capuano said. The name sat dormant for a while on the brand side of the business, and then a year ago Sternlicht reached out to bring it back. He was already using it for his private equity company, Starwood Capital, but now wants to use it for his new collection of hotel brands.

Sternlicht’s team worked collaboratively and transparently with Marriott, Capuano said.

“I think in some ways, it’s an interesting validation of both our strategy and other big-brand company strategies,” he said. “You look for something that ties together a diverse set of brands. [Sternlicht has] evolved now. He has 1 Hotels, he has Baccarat, he has Treehouse, and so presumably he’ll use that name to try and pull together a diverse portfolio.”

Since the deal in 2016, Starwood Capital has operated and thrived, Capuano said. Marriott doesn’t really use the Starwood name anymore, so there shouldn’t be any significant customer or owner confusion.

“And you know, Barry is big owner of ours, so I think the manner in which he teed this up with us was reflective of the strength of our partnership,” he said.

Conclusion

The new Starwood Hotels is not a threat or competitor to Marriott, as their target market is vastly different.

Marriott does cookie-cutter and standardized hotels very well, to the point that there are hardly any differentiators between their full-service brands beyond the flag at the door.

Let’s see how fast Mr. Sternlicht can grow his new Starwood Hotels and expand it to become a significant player (and if their loyalty program will be any good and whether it will be called Starwood Preferred Guest—SPG).

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