Starwood Hotels & Resorts SWOT analysis: Starwood Hotels & Resorts is a top hotel chain that is owned by Marriott International. The company was among the biggest in the hospitality industry in the US that has a network of spas, resorts, and hotels. The Residences brand and the vacation ownership comprise about 11 sub-brands that fall under the umbrella. The chain that was founded in 1969 became a company in the year 1980.
Marriott International closed the acquisition of Starwood Hotels in the year 2015 for 14 billion dollars which is one of the largest transactions that has ever occurred in the world of the hospitality industry. The chain includes several facilities in each of its verticals, but the main basis of the model is service.
The company has a total annual turnover of 6.2 billion and employs approximately 181,400 individuals in its numerous properties around the world. The hospitality industry is comprised of high-end brands such as Sheraton, Westin, Le Meridian, Aloft, and Four Points and encompasses more than 1200 properties around the globe under its 11 brands.
Starwood Hotels & Resorts fun facts: Starwood had 11 brands and owned, managed, or franchised 1,297 properties comprising 370,000 hotel rooms in approximately 100 countries.
About Starwood Hotels & Resorts – SWOT analysis of Starwood Hotels & Resorts
Company: Marriott International
CEO: Raul Leal
Founder: Barry Sternlicht
Year founded: 1980
Headquarters: Stamford, Connecticut, United States
Annual Revenue: USD$1.2 Billion
Profit | Net income: USD$474 Million
Number of employees: 188,000
Products & Services: Hotels | Resorts | Spas | Residences
Starwood Hotels & Resorts Competitors
SWOT analysis of Starwood Hotels & Resorts – Starwood Hotels & Resorts SWOT analysis
SWOT Analysis Of Starwood Hotels & Resorts is brand-based. SWOT Analysis of Starwood Hotels & Resorts evaluates the brand’s strengths, weaknesses, opportunities, and threats. Advantages and disadvantages can be attributed to internal factors while opportunities and threats can be attributed to external factors. We will be discussing Starwood Hotels & Resorts’ SWOT Analysis. Below is the detailed SWOT Analysis of Starwood Hotels & Resorts.
Let’s talk about Starwood Hotels & Resorts’ SWOT assessment.
Strengths of Starwood Hotels & Resorts – Starwood Hotels & Resorts SWOT analysis
- People-centric: Starwood Hotels has always been a company that is based on people, whether it’s employees or customers, they have always placed them at the center of their plans. Their focus on people has enabled them to provide customer-centered services, and their high-quality service is top-notch throughout their properties.
- Ability to satisfy the customer segments: The target segment of the hotel chain is young people in the high-income bracket. With a technologically driven and touch-centric strategy, the hotel has devised strategies that increase the level of engagement and satisfaction of the customers.
- Technology: Hotels need to look beyond clean rooms as well as good food and a pleasant ambiance to attract clients. Many hotels are looking to technology to enhance the level of service. The hotel invests in business analysis as well as big data that helps them to predict the preferences and behavior of their targeted segment.
- Customer Loyalty Programs: Sub-brands of Starwood Hotels & Resorts such as Marriott as well as Le Meridian have the Starwood Loyalty program that earns loyalty points for frequent customers on their trips. They can then be redeemed for various benefits such as room up and downgrades, free stays, or meals that are personalized to your preferences. These programs have helped to establish a loyal client base.
- Personalized solutions: The hotel chain has always offered customized services to its customers. For instance, keyless entry via Bluetooth-connected technology. customized menus that include dishes of the preference, and ambiance in the room like lighting, scent, and color in accordance with the client’s preferences, etc. are just a few of the many aspects which are included in customized services.
- Smart Logistics: UPS is the only company to have its credit the International Shipment Processing System which employs techniques such as intelligent scanning, live tracking of delivery and logistics scheduling, etc.
- The focus is On Supply chain as well as freight: UPS has acquired Coyote recently, which has enabled the company to expand its operations in the supply chain and to enhance its strategies for managing freight.
Weaknesses of Starwood Hotels & Resorts – SWOT Analysis Of Starwood Hotels & Resorts
- Plans for expansion: Starwood Hotels has been expanding quickly to every corner of the globe. The expansion plans aren’t only consuming the budgets of the chain, but are also hindering its potential due to competition from cheaper hotels.
- Real estate issues: The rising cost of land, as well as the changing prices of the interest. In an effort to expand into emerging economies, the hotel has been buying land at very high prices and this could an expensive error over the long term.
- Affordable options: In most locations across their operating regions Starwood Hotels they are facing an abundance of competition from low-cost competitors like homestays, hotels with a budget, and so on. In the wake of the economic crisis that is sweeping the globe, travelers are opting to pay less and less on lodging, boarding, and dining and the result is that there are a lot of brands changing.
Opportunities of Starwood Hotels & Resorts – Starwood Hotels & Resorts SWOT analysis
- The changing market Trends: These trends within the market for hospitality are changing. The consumer is more demanding but is willing be willing to shell out more cash for premium services. Hotels paying more attention to individual services could charge more for their services.
Threats of Starwood Hotels & Resorts – SWOT analysis of Starwood Hotels & Resorts
- Competition The principal rivals of Starwood Hotels & Resorts are Hilton, Wyndham Worldwide, and Intercontinental Hotels.
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