Starwood Realigns North American Franchise Business
Creates Dedicated Select Service Organization
DECEMBER 4, 2009 - Starwood Hotels & Resorts Worldwide, Inc. (NYSE: HOT) today announced a realignment of resources within its North American franchise business to optimize support for franchise owners and hotels. The streamlined model provides for two distinct, committed support organizations - one to service Starwood's rapidly growing Select Service franchise hotel brands, Four Points by Sheraton and the recently launched Aloft and Element, while a separate unit will be fully dedicated to Full Service franchise hotels, including Le Meridien, The Luxury Collection, Sheraton and Westin.
“We continue to evolve our business model from an owned real estate to an 'asset light' organization. Our franchise partnerships, within both the Select Service and Full Service divisions, are important sources of fuel for Starwood's expansion,” said Frits van Paasschen, President and CEO of Starwood. “By dedicating distinct resources to both Select Service and Full Service franchise hotels, we are confident that we can further drive revenue and profitability.”
Starwood's North American franchise hotels currently comprise 68 percent of Starwood's North American portfolio which is up from 62 percent 24 months ago. Starwood's Select Service franchise category also has seen significant expansion in North America growing from 30 percent to 39 percent in the last 24 months.
Twelve-year Starwood brand and marketing veteran Brian McGuinness, Senior Vice President of Specialty Select Brands, will continue to lead Select Service from a brand perspective globally while assuming responsibilities for Starwood's North America Select Service division, leading a dedicated team of resources in food and beverage, information technology, training, sales operations, revenue management, field marketing, advertising and marketing, and guest initiatives. Select Service Operations in North America will be led by John McGovern, Vice President of Specialty Select Service Franchise, who will report to Lynne Dougherty, SVP of Owner and Franchise Services. Both McGovern and Dougherty are tenured Starwood franchise hospitality organization executives.
“Our franchise partners look to Starwood as an industry innovator with nine distinct and iconic brands that are built on Starwood's collective strength,” said Denise Coll, President of North American Hotels for Starwood. “We've worked closely with our owners and management companies to develop what we consider to be the natural evolution of building a dedicated culture around Select Service, especially as this segment of our business continues to grow both in terms of footprint and strategic importance to Starwood. We believe that this is a model our franchise owners, lenders and management companies will support, and one that will drive maximum value to all parties.”
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