Barry Sternlicht, the visionary behind Starwood Hotels and Resorts—which introduced iconic brands like W Hotels—made a fortune revolutionizing the travel industry. Now, he’s ready to do it all over again, bringing back the Starwood name.
Starting in February, Sternlicht’s current hotel company, SH Hotels & Resorts, will adopt the Starwood brand, nine years after the original Starwood Hotels was sold to Marriott in a $13 billion deal that created the world’s largest hotel chain. For Sternlicht, 64, this move signals his desire to reestablish himself as a major player in hospitality, two decades after stepping down from his leadership role at Starwood. Since then, he has focused primarily on Starwood Capital, the $115 billion private equity firm that originally spawned Starwood Hotels.
While hotels have remained a part of Starwood Capital’s portfolio, Sternlicht has largely been buying and selling properties rather than managing them. However, he has long harbored ambitions to make his mark on the hotel-management industry once again—this time under the Starwood name.
“I’m kind of like a singer with one hit song,” Sternlicht said in an interview. “I want to have two songs.”
Although reviving the Starwood name might seem like a minor change—especially since Marriott retired it years ago—it holds deep personal significance for Sternlicht. He believes reclaiming the brand will elevate his company’s profile and aid in recruiting talent. He reacquired the rights to the name last year.
This rebranding marks the latest chapter in Sternlicht’s quest to build a new hotel empire. By the time Marriott acquired the original Starwood, the company managed over 1,300 properties in 100 countries, with brands like Westin, W, Sheraton, and St. Regis. The newly revived Starwood currently operates three brands with 14 hotels across five countries, but Sternlicht’s ambitions suggest there’s much more to come.
Sternlicht’s journey in hospitality began in 1994, when his real estate investment firm, Starwood Capital, purchased Westin from a Japanese corporation. He quickly expanded by acquiring other chains and, in 1998, launched W Hotels, a brand synonymous with modern luxury and sleek design. Known for his obsessive attention to detail, Sternlicht scrutinized everything from the number of pillows on beds to how porters handled luggage. His innovations, like the introduction of the Heavenly Bed at Westin, redefined guest expectations. Despite initial resistance to the $17 million investment required to upgrade every bed in the chain, the move paid off handsomely, with the Heavenly Bed becoming a signature feature and even being sold at Nordstrom.
“He was the one who really cemented the concept of lifestyle hotels,” said Bjorn Hanson, a hospitality consultant, describing Sternlicht as one of the architects of the modern hotel industry. “The industry needed an outsider to ask, ‘What’s important to hotel guests?’”
Sternlicht stepped down as Starwood’s executive chairman in 2005 after years of internal conflicts with other executives. A decade later, Marriott acquired Starwood following a heated bidding war with a Chinese insurance firm. By then, Sternlicht had already re-entered the hotel business, creating three new brands: Baccarat, 1 Hotels, and Treehouse.
Baccarat, a high-end luxury brand, features opulent designs, such as the crystal chandeliers in its Manhattan location. 1 Hotels, an eco-conscious lifestyle brand, incorporates natural elements like wood, stone, and greenery into its design. Treehouse, meanwhile, is a playful, nostalgia-driven brand inspired by childhood memories. Sternlicht has hinted that he’s working on at least one more brand.
The new Starwood has ambitious plans, with 22 hotels slated to open by 2028. Upcoming locations include 1 Hotels in Austin, Texas; Crete; and Seattle; Treehouses in Manchester, England, and Miami; and Baccarats in Dubai, the Maldives, and Rome. All three brands will also debut in Riyadh, Saudi Arabia. While Sternlicht has no plans to sell the company, he is open to selling a small stake to fund further international expansion.
However, the hotel industry has become far more competitive since Sternlicht’s first foray. Many of his innovations—spanning design, amenities, and customer service—have been widely adopted by competitors, and the market is now saturated with lifestyle brands and boutique hotels.
For Sternlicht, though, the challenge is part of the appeal. “This is my passion,” he said. “Designing hotels and keeping them on brand is fun.”
As he embarks on this new chapter, Sternlicht is determined to prove that lightning can strike twice under the Starwood name.
Source: nytimes.com