Starwood Hotels seeks to expandits market share in Middle East

Global hospitality major Starwood Hotels & Resorts that owns the Sheraton brand manages 40 properties in the Middle East with seven in the UAE alone.

At least four more properties will be added to its portfolio by early next year.

Clearly, Starwood seeks to maintain and expand its market share, what with tourism booming and more traffic moving into this region.

Philippe Cassis, senior vice-president and regional director for Africa and the Middle East, outlines the group's plans and strategy for the brand.

Excerpts:

Gulf News: For starters, what's Starwood's strategy in this region?
Philippe Cassis: Our development strategy in the region is to expand the diversity of the Starwood brand portfolio in key growth locations. Our philosophy is to grow smart and fast through strategic partnerships with the investment community to add brand value and enhance returns on investment.

Starwood has a distinct portfolio of brands including Westin, Four Points by Sheraton, St Regis, The Luxury Collection, and the Sheraton.

GN: You do have definite expansion plans in the Middle East?
PC: Regionally, we continue to leverage the potential of these brands in key growth locations.

We opened the 132-room Four Points Le Verdun, our third property in Lebanon and the second in Beirut a few months ago.

By mid-2005, we expect to open the 321-room Sheraton Oran in Algeria, our second there since we opened Sheraton Club des Pins in 1999. Sheraton Oran is the first international hotel to operate in the city of Oran.

Towards the last quarter of 2005, we will open our third property in Syria, the 218-room Sheraton Aleppo Hotel & Towers, again the first internationally managed hotel in Aleppo.

Construction is underway in Egypt for a 250-room luxury hotel next to the Sheraton Heliopolis Hotel and completion is expected by early 2006.

In 2006, we also expect to open a 176-room luxury hotel L'Amphitrite Palace in Morocco.

GN: How does Starwood overcome the stiff competition in this region?
PC: The core of Starwood's competitiveness lies in the power and the diversity of its brands, global market share, revenues sources and geographic locations.

I believe competition is very healthy and necessary. It creates a dynamic environment for continuous improvements. It triggers innovation, creativity and ongoing monitoring of customers' needs, trends and even moods.

In the Middle East, Sheraton is among the most widespread and established brands with 40 years of experience here. We were the first international hotel operator to enter the Middle East with the opening of Sheraton Kuwait in 1966.

With the opening of Sheraton Tunis in December 2003, the brand is the first to be present in all major cities in the Middle East and North Africa.

Sheraton is Starwood's largest global brand. Since 1998, Starwood has invested nearly $1 billion (Dh3.68 billion) in renovating Sheraton's properties.

GN: Finally, a word about the hospitality industry in the Middle East?
PC: The majority of Middle East countries are running full steam. The rise in inter-regional traffic has been the main driver of the tourism boom as Arab travellers now choose to spend their holidays in the region as opposed to international destinations following visa regulations and cumbersome security procedures post-September 11.

The increased demand is also due to the overall improvements in tourism supply on offer and the increasingly professional marketing and promotion of destinations here.