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Starwood Hotel Analysis

5536 words - 23 pages

Team Project

Starwood Hotels

Table of Contents
Executive Summary 2
Situation Analysis 3
Primary Research 6
Segmentation, Targeting and Positioning 9
Product, Price and Place 12
Integrated eMarketing Communications Plan 15
Appendix 22-24

Executive Summary
Starwood Hotels is one of the world’s largest competitors in the hotel and leisure industry. Some of their largest hotel brands include St Regis, Westin, Sheraton, and Le Méridien. Emphasizing global operations, Starwood operates in approximately 100 countries with 292,000 rooms and close to 145,000 employees. Although Starwood is a major player ...view middle of the document...

Situation Analysis
Company Background
Starwood Hotels is one of the world’s largest hotel and leisure companies; it was founded in 1969 and is based in White Plains, New York. They conduct their hotel and leisure business both directly and through their subsidiaries. Their brand names include the following: St Regis, The Luxury Collection, W, Westin, Le Méridien, Sheraton, Four Points, Aloft, and Element. Westin and Sheraton hotel and resorts are the two largest of the Starwood name both operating for more than 60 years. Starwood Hotels also owns Starwood Vacation Ownership, Inc., one of the premier developers and operators of high quality vacation interval ownerships resorts. Starwood’s hotel business emphasizes the global operation of hotels and resorts primarily in the luxury and upscale segment of the lodging industry. As of December 31, 2009, Starwood’s hotel portfolio included owned, leased, managed and franchised hotels totaling 1000 with approximately 292,000 rooms in approximately 100 countries and approximately 145,000 employees at its owned and managed properties. Over 500 properties are in North America with rooms totaling close to 175,000.
The hotel industry is highly competitive. Competition is commonly based on quality and consistency of room, restaurant and meeting facilities and services, attractiveness of locations, availability of a global distribution system, price, the ability to earn and redeem loyalty points and other factors. Our principle competitors include other hotel operating companies and national and international hotel brands. Direct competition comes from Hyatt Hotels, Marriott International, Inc. and the privately held Hilton Worldwide. While Starwood employees more people than the competition at 140,000, Hyatt employees 45,000, Hilton has 130,000 and Marriott employee’s 137,000. Starwood’s net income is negative $82 million while Hyatt and Marriott are at $42 and $391 million consecutively.
Hilton, Hyatt and Marriott all carry many brand names and both catering to as many demographics as possible like Starwood does. Marriott operated 3,500 lodging properties in 70 countries and territories and Hyatt operated or franchised 223 full-service Hyatt-branded hotels consisting of 97,528 rooms in 45 countries worldwide; and 176 select-service Hyatt-branded hotels with 22,503 rooms in the United States and Canada. It also manages 15 vacation ownership properties and 10 residential properties. Hilton Worldwide operates with ten hotel brands and more than 3,600 hotels in 81 countries.
SWOT Analysis
When considering the strengths and weaknesses of Starwood Hotels and Resorts, a main strength is that they have many different brands to cater to the needs of many different types of customers. These brands range anywhere from luxury hotels, select-service hotels, and extended stay hotels. By offering these different types of hotels, Starwood can appeal to many target...

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