Starwood Competitor Analysis

Topics: Financial ratios, Profit, Hotel Pages: 2 (577 words) Published: April 2, 2012
Starwood Hotels & Resorts Competitor Analysis
Market Performance:
Starwood’s market share should either stay the same or grow in the future. With plans to continue expanding into emerging markets like China and continuing to get out from under their real estate ownership and move toward a more management/franchise focus their revenues should continue to increase over the next few years. Starwood competes by focusing on their brand name. They want the name to evoke thoughts of comfort, style, great service, and a home away from home for the more luxurious clients and business travelers. Major influences on the distribution of market share are going to be technology, availability, and the economy. With the emergence of travel sites that help search out the best prices while also giving information on amenities and star ratings, hotels will have to be more conscious of their standings on these sites to continue to dominate in their segment of the market. Having your hotels in the best locations, available to the consumers where they need them is going to be a big influence on market share. Again many brands are expanding into new markets like China to try and keep up with the shift of travelers. In doing this they hope to catch that revenue flow shifting to those markets. The last factor, the economy, is an ever changing issue. With the downturn in America many hotels are turning to other markets to keep revenues coming in. Of course like America, new and emerging markets are also subject to economic swings in the future so the industry must stay aware of those swings and anticipate when they may hit. Financial Performance:

The following ratios were used to compare Starwood Hotels’ financial performance to the industry: Operating Profit Margin, Return on Capital Employed, Sales/Profit / Fixed Assets, Current Ratio, and Gearing. As you will see Starwood Hotels financial performance mimics that of the economy with the downturn after 2008 and the...
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