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Starwood 2.0: Barry Sternlicht’s new vision for hospitality

  • l.guillotindecorson
  • 3 February 2025
  • 4 minute read
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This article was written by HospitalityOn. Click here to read the original article

Barry Sternlicht, founder of Starwood Hotels & Resorts, is preparing to relaunch the Starwood brand nearly ten years after its sale to Marriott International for $13.6 billion. Set to begin in the spring of 2025, this rebirth marks a pivotal moment for the entrepreneur, who is returning to his roots with an ambitious project.

After the sale of Starwood Hotels, Barry Sternlicht focused his efforts on other ventures, notably Starwood Capital, a private investment firm. However, his passion for the hospitality industry has never waned. He began laying the foundation for the relaunch of the Starwood brand through SH Hotels & Resorts, a subsidiary that already manages brands like 1 Hotels, Baccarat Hotels, and Treehouse Hotels.

The revival of the Starwood brand is part of a broader strategy by SH Hotels & Resorts to expand its influence in the global luxury and lifestyle hospitality market. The first phase of Starwood’s return will include 14 hotels across three distinct brands: Baccarat, 1 Hotels, and Treehouse Hotels. These hotels will cater to the growing demand for sustainable luxury experiences and design spaces that meet the needs of modern travelers. Barry Sternlicht’s vision is clear: to create hotel experiences that are both luxurious and highly sustainable, combining innovation with heritage.

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In January 2024, SH Hotels & Resorts unveiled its growth plans across four continents and 13 countries, with a portfolio that already includes over 30 hotels and residential projects in development. This expansion is not limited to opening new properties but also includes the transformation of historic buildings, a testament to the group’s commitment to preserving and revitalizing spaces. Upcoming projects focus on innovation, sustainability, and well-being, with particular attention to branded residences and resorts. The company plans to open properties in strategic destinations, including Europe, the Middle East, the U.S., Mexico, and the Asia-Pacific region.

1 Hotels continues to grow with several openings on the horizon. Among the announced projects are the 1 Hotel & Homes Melbourne (scheduled for 2025), 1 Hotel Paris (2027), and 1 Hotel Diriyah in Riyadh (2027). Each property will focus on wellness and sustainable practices, integrating initiatives aimed at reducing carbon footprints and minimizing waste.

Baccarat Hotels & Resorts is also planning to open new properties, including the Baccarat Hotel Rome (2025), Baccarat Hotel Florence (2026), and Baccarat Hotel & Residences Dubai (2026).

Treehouse Hotels is expanding its network with several ongoing projects, including Treehouse Sunnyvale (2024), Treehouse Manchester, and Treehouse Brickell in Miami (2026). Other openings are planned in Adelaide (2027) and Riyadh (2028).

Looking to the future, Barry Sternlicht and SH Hotels & Resorts have ambitious plans to expand the Starwood brand. By 2028, they plan to open 22 more Starwood hotels, putting the brand on a path to a strong return to the global hospitality industry.

One of the key aspects of this revival is the anticipation around Starwood’s loyalty program. Although Barry Sternlicht has not yet revealed whether there will be a new loyalty program, many former loyal customers of the SPG program are hoping for its return in some form, offering once again an exclusive program and rewards for regular travelers.

The history of Starwood Capital Group

Starwood Capital Group, founded in 1991 by Barry Sternlicht, was initially conceived as a private real estate investment firm focusing on projects in both commercial and residential real estate sectors.

In 1995, Starwood Capital entered the hospitality industry by acquiring Starwood Hotels & Resorts under Barry Sternlicht’s leadership.

However, in 2005, Barry Sternlicht stepped down as CEO of Starwood Hotels & Resorts to focus fully on Starwood Capital, which continued to invest in real estate while maintaining a presence in the hospitality sector. The firm became a major player in global real estate investments, diversifying its projects across several segments, including luxury hospitality.

A major turning point came in 2016 when Marriott International announced the acquisition of Starwood Hotels & Resorts for $13.6 billion. This acquisition allowed Marriott to expand with more than 30 brands and over 5,700 properties. While Starwood Hotels & Resorts ceased to exist as an entity, Starwood Capital maintained its real estate investment activities, with Barry Sternlicht focusing on the firm’s growth in a new form.

In the years that followed, Starwood Capital continued real estate projects focused on sustainability and innovation. In 2017, the company launched SH Hotels & Resorts, a subsidiary dedicated to managing modern, environmentally-conscious hotel brands. Brands launched under this entity include 1 Hotels, an eco-luxury concept, Baccarat Hotels, inspired by the art of Baccarat crystal, and Treehouse Hotels, a more laid-back concept centered on experience and originality.

Since 2024, SH Hotels & Resorts has seen significant international expansion, with projects across four continents and several countries, strengthening its position in the luxury and sustainable hospitality sector. Starwood Capital continues to invest in major real estate projects, consolidating its place in the sector while staying true to its values of innovation and environmental responsibility.

Photo credit: SH Hotels & Resorts @Treehouse Hotels – 1 Hotel Tokyo

Europe

credit: Pexels

Please click here to access the full original article.

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