Starwood's Business Strategy For Starwood Hotels And Resorts

1048 Words5 Pages
Barry Sternlicht, who has been credited with Starwood’s success as the world’s largest hospitality company, founded Starwood Hotels and Resorts in 1991. The company made its first big bid into the industry in 1995 when, with backing from Goldman Sachs and Nomura Securities, Starwood purchased Weston hotel brand. In 1997, Starwood purchased Sheraton, the Dessert Inn, and Caesars once the Westin acquisition was completed. In 1998, Starwood launches the W hotel brand and hires Richard Nanula to run its operating company. In 1999, Richard Nanula resigns his position and Starwood becomes a corporation. Starwood’s business strategy is to make money by dominating the upscale lodging market. Up-scale customers demand more in terms of services provided. By maintaining quality lodging brands they can charge higher than normal daily rates, therefore increasing their overall revenue. Starwood intends on manipulating existing strengths in order to maintain growth, maximize earnings, and to create a competitive advantage over their competition (Cox, Jacobs, Mayer, Wei & Nouralla, 2003). Starwood specifically designed a Board of Trustees that would possess expertise in the following areas: technology, globalization, and corporate experience (Cox, Jacobs, Mayer, Wei, & Nouralla, 2003). This Board of Trustees was considered the most effective board leading a public lodging company and selected as the Top Operating Board of Directors in 2001. The current board has 11 members, the

More about Starwood's Business Strategy For Starwood Hotels And Resorts

Open Document