Starwood Hotels’ CEO on Why the Revived Brand Is Staying Small
Photo Credit: Exterior of Baccarat Hotel in New York City. Starwood Hotels
Skift Take
The original Starwood Hotels became a powerhouse through a scale game. The revived brand name is a bet that less can be more in today's world of digital distribution and marketing.
Starwood Hotels is back, nine years after Marriott acquired the original in a $13.6 billion deal. Yet the hotel group, which was revived a year ago by founder Barry Sternlicht's Starwood Capital Group, is not trying to rebuild that empire.
According to CEO Raul Leal, Starwood Hotels wants to keep its footprint small but highly profitable.
"Our watchword is 'intentional' as we look for locations that fit the brand," Leal said. "I don't see us having 1,000 hotels like the old Starwood. Market dynamics have changed quite a bit."
The group has only 17 open hotels across only three brands: 1 Hotels, Baccarat Hotels, and Treehouse Hotels.
Leal argued that a smaller, distinctive portfolio can punch above its weight in an era when travelers discover hotels through Instagram influencers and AI chatbots.
"The curation and the content are so critical," said Leal. "The photography you do on property, the kind of activations you do locally wit