Barry Sternlicht Revives Starwood Hotels with Global Expansion

Barry Sternlicht is relaunching Starwood Hotels, focusing on luxury, sustainability, and global expansion.

Han-Gwon Lung & Jordan B.
January 28, 2025

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Good morning. Barry Sternlicht, the billionaire investor who made his name in hospitality, is bringing back a new hotel business—but it’s got an old name.

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hospitality

Barry Sternlicht Brings Back Starwood Brand

Barry Sternlicht. Source: NYT

Barry Sternlicht, the hospitality powerhouse behind Starwood Hotels, is bringing the iconic brand back with ambitious plans for global growth.

A familiar name: A decade after selling Starwood Hotels to Marriott for $12B, Sternlicht announced the brand's revival. The relaunch will incorporate three of his existing hotel chains—Baccarat, 1 Hotels, and Treehouse—and aim to expand to 22 locations by 2029.

The vision: Sternlicht, who leads Starwood Capital Group with $115B in assets, says the move signals a return to hands-on hospitality. Speaking to The New York Times, he noted, “I want to have two songs,” referencing his desire to expand beyond managing investments. The revived Starwood Hotels will focus on unique offerings:

1 Hotels: Austin, Seattle, Crete, Greece
Treehouse: Miami, Manchester, UK
Baccarat: Dubai, Rome, Maldives

Some background: Barry Sternlicht revolutionized hospitality with W Hotels, the Westin Heavenly Bed, and the trailblazing Starwood Preferred Guest program. While it’s unclear if the new Starwood will introduce a loyalty program, his track record suggests something fresh and new is likely on the horizon.

Industry forecast: The hotel sector is bouncing back post-pandemic, with RevPAR growth projected to rise 3–5% in 2025. International travel is forecast to rise up 10% to 85M travelers. Meanwhile, hotel investments are expected to soar 15–25%. This resurgence, driven largely by higher consumer spending, supports Sternlicht’s global strategy.

➥ THE TAKEAWAY

Big, bold bet: While Sternlicht may sell some of the resurrected Starwood Hotels to fuel its expansion, he emphasized his commitment to retaining ownership. At its peak, the original Starwood Hotels portfolio spanned over 1,300 properties in 100 countries. Sternlicht’s return to the sector promises a new era of innovation and investment.

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✍️ Editor’s Picks

Mods rising: In 2024, CRE loan modifications reached a record $19B as property owners and lenders continue relying on “extend-and-pretend,” hoping interest rates will eventually drop.
Find out how: 52TEN scaled from 20 to 200 investors with InvestNext, maintaining transparency and saving $360K annually in operational costs, positioning the firm for scalable growth. (sponsored)
Joint effort: Ken Griffin teamed up with Related Cos. to develop a 54-story office tower in Miami’s Brickell neighborhood, which will house Citadel’s HQ and include a hotel, retail, and waterfront amenities.
Gut check: China's Vanke, a key player in the US CRE market, reported a $6.2B loss in 2024 and saw top execs resign, fueling concerns about the broader impact of the ongoing downturn.
Attracting business: Governor Kathy Hochul proposed extending the city's Relocation and Employment Assistance Program (REAP) through 2030 and introduced a new tax credit program, RACE.
Differing opinions: The equity risk premium turned red in Dec. for the first time since 2002, so stocks may no longer offer the same return advantage over bonds, yet retail investors remain bullish.

🏘️ MULTIFAMILY

Demand and stability: Jacksonville multifamily is poised for a rebound, with slowing construction, strong demand, and rising rents, particularly in areas like Central Jacksonville, Southside, and the Beaches.
On second thought: Swire Properties canceled plans for a supertall tower in Miami’s Brickell area due to slow leasing, opting instead to sell the sites and redirect funds into its luxury Mandarin Oriental.
Securing the bag: Rise Properties Trust refinanced two Seattle apartment buildings with a $92.5M loan, positioning them to capitalize on the region's downtown recovery.
9-figure refi: Related Companies locked in a $100M loan to refinance its 178-unit residential tower, The Strathmore, on the Upper East Side.

🏭 Industrial

Escalating arms race: Meta (META) plans to allocate a record $60B to $65B in capital expenditures for 2025, with a major chunk going to expanding data centers to fuel its AI initiatives.
Swapping data: Prologis (PLD) sold a 28 KSF data center at 4775 League Island Blvd. in Philly's Navy Yard to Landmark Dividend for $16M, with the CA-based firm interested in more deals in the region.
Massive milestone: Trammell Crow Co. and Diamond Realty Investments delivered Mid I-5, a 1.2 MSF LEED-certified industrial facility in Kelso, WA, the largest speculative industrial project in the Pacific Northwest.

🏬 RETAIL

Fresh start: The Container Store (TCSG) won approval to exit bankruptcy, reducing $88M in debt and securing $40M in fresh capital as part of a lender-backed restructuring and privatization plan.
Skier storage: CA-based SmartStop Self Storage REIT (STSFF) added a Class A self-storage facility in Aurora, CO, to its portfolio, continuing to grow in the competitive self-storage market.
End of an era: JCPenney's 275.4 KSF anchor store at the Shops at Tanforan in San Bruno is set to close on May 25, setting the stage for Alexandria Real Estate Equities’ planned 2 MSF biotech campus redevelopment.

🏢 OFFICE

Seismic shift: Downtown LA is preparing for 10K federal employees to return to over 1 MSF of office space following Trump’s directive to end remote work.
Do we need it? According to Trepp data, the Trump administration may downsize up to one-third of all federal leases nationwide, including 27% of GSA leases in the DC-MD-VA region by 2025.
Portfolio reshuffle: Hearst Corp., owner of the San Francisco Chronicle, is buying a downtown office tower near its 901 Mission Street HQ to revive a long-delayed condo development adjacent to the site.

🏨 HOSPITALITY

Rising sun: Brookfield Asset Management (BN) committed $1.6B to Japan by buying a stake in Tokyo's iconic Gajoen complex and purchasing land near Nagoya for logistics development.
Hotel expansion: Baywood Hotels is planning a 135-room AC Hotels by Marriott (MAR) in Goodyear, AZ, within the new 150-acre Goodyear Civic Square at GSQ, west of Phoenix.