Starwood Hotels & Resorts Worldwide Inc. (HOT) entered into a management deal with Starwood Capital Group to renovate two premier resorts –– Silvertree Hotel and the Wildwood Lodge –– in Snowmass Village, Colorado. Both locations are owned by a joint venture between Starwood Capital Group and Wasserman Real Estate, which purchased the properties in June.
The properties enjoy a prime location in one of the world’s top ski resort communities. This makes them strategically fit for the extensive renovation. Management is hopeful that the facelift will make Silvertree and Wildwood key international booking drivers in Starwood’s portfolio.
Renovation work is slated to begin in April 2012 so as to re-open the properties in time for the 2012/2013 ski season. Post renovation, Silvertree Hotel will operate under Starwood Hotels’ Westin brand, while Wildwood Lodge will operate independently. The two hotels will be managed by Starwood Hotels & Resorts.
As a point of reference, Starwood recently converted an existing Clarion property at San Francisco Airport to the Aloft brand. Again, In March, Starwood embarked on a two-phase $150 million remodeling program for The Sheraton, New York, one of the largest hotels in New York City. The first of these phases was completed in May.
Since late 2010, hotel companies are working hard on guest satisfaction to uplift their positions in a cutthroat environment. Brand conversion and remodeling became the trend. Many of Starwood’s peers like Marriott International Inc. (MAR) and InterContinental Hotels Group (IHG) are also walking the same path. This year, Marriott has around 47 properties are under renovation compared with 30 hotels in the year-ago quarter.
Starwood currently retains a Zacks #3 Rank, which translates into a short-term Hold rating. We are also maintaining our long-term Neutral recommendation on the stock.
