Subject category:
Strategy and General Management
Published by:
Asian Business Case Centre
Version: 17 Nov 2004
Length: 22 pages
Data source: Field research
Share a link:
https://casecent.re/p/20000
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Abstract
The case describes how Starwood Hotels and Resorts Worldwide Incorporated, founded in 1991, grew under the visionary leadership of Barry Sternlicht, its founder and CEO. It documents how Sternlicht aquired, financed and integrated two leading hotel brands - Westin and ITT Sheraton during 1997, which were ten times larger in size, to become a globally diversified leading hotel chain. However, by the time the integration process was almost completed, Starwood''s operations were severely impacted by the September 11 terrorist attacks and weaknesses of the global economy. When business and leisure travel in North American and European markets entered a downturn, its growth stifled. It leaned on Asia for future growth in the new millennium. As the global hotel industry endured the impact of terrorism, the region''s recovery prospects further deterioted due to the 2002 Bali bomb explosions and early 2003 Iraq war. Amidst many challenges for the company''s newly appointed president of Asia Pacific, boosting the share of operating profit from 10 to 25 percent by 2007 - a goal set by the CEO in 2002, was a tough act on hand.
Location:
Industry:
Size:
230,000 hotel rooms worldwide
Other setting(s):
2004
About
Abstract
The case describes how Starwood Hotels and Resorts Worldwide Incorporated, founded in 1991, grew under the visionary leadership of Barry Sternlicht, its founder and CEO. It documents how Sternlicht aquired, financed and integrated two leading hotel brands - Westin and ITT Sheraton during 1997, which were ten times larger in size, to become a globally diversified leading hotel chain. However, by the time the integration process was almost completed, Starwood''s operations were severely impacted by the September 11 terrorist attacks and weaknesses of the global economy. When business and leisure travel in North American and European markets entered a downturn, its growth stifled. It leaned on Asia for future growth in the new millennium. As the global hotel industry endured the impact of terrorism, the region''s recovery prospects further deterioted due to the 2002 Bali bomb explosions and early 2003 Iraq war. Amidst many challenges for the company''s newly appointed president of Asia Pacific, boosting the share of operating profit from 10 to 25 percent by 2007 - a goal set by the CEO in 2002, was a tough act on hand.
Settings
Location:
Industry:
Size:
230,000 hotel rooms worldwide
Other setting(s):
2004