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Starwood to open 500 XYZ branded hotels
Starwood Hotels is to introduce a new lower-priced version of its W Hotels chain to target the lower end of the market with a more trendy hotel targeted at younger travellers, reported Reuters.
The new hotels, code-named “Project XYZ” by the company, will feature loft-like guest-rooms and landscaped outdoor space for socialising, the company said. Starwood plans to open more than 500 “XYZ” hotels by 2015, with the first scheduled to open in 2007.
XYZ will compete in the “limited service” hotel category with brands such as Hilton Garden Inn and Marriott’s Courtyard that offer services without amenities such as spas and room service.
“We are very optimistic this will be a footprint that will exceed 100 hotels over the next couple of years,” said Starwood CEO Steven Heyer. “I think it’s a massive market opportunity, I think it’s a growth opportunity.”
Starwood will spend about $85,000 to $90,000 per room on the project, Heyer said.
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