Skift Take
As CEO of Starwood Capital, Sternlicht the longtime hotel king balances financial performance with social responsibility.
Key Points
Summary
Barry Sternlicht founded Starwood Capital Group in 1991 with $20 million in assets, growing it to manage over $115 billion. Key milestones include the acquisition of the Westin Hotel Company in 1995 and ITT Corp in 1998, leading to the creation of the W Hotels chain. Sternlicht emphasizes local culture in his hotel designs and has expanded into various sectors, including outdoor stays and impact investing. He also advocates for affordable housing and zoning reforms, and co-owns the sustainability-themed '1 Hotels' brand. Sternlicht's background in arts and business has influenced his contemporary aesthetic in hospitality.
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When Barry Sternlicht founded Starwood Capital Group in 1991, he raised about $20 million in assets. At last count, the group managed over $115 billion in assets.
Starwood founded the firm from scratch by purchasing the Doral Inn on Lexington Avenue in New York City. In 1994, Sternlicht started Starwood Lodging by merging some assets held by Starwood Capital Group’s funds. In 1995, Starwood Capital Group and Goldman Sachs acquired the Westin Hotel Company for $561 million. In 1998, ITT Corp, which owned Sheraton, agreed to be acquired by Starwood Lodging Trust for $9.8 billion.
Starwood Capital then converted its first purchase of the Doral Inn into the W Hotels chain in 1998. The chain is known for its contemporary design, vibrant color schemes, and modern atmosphere.
Sternlicht’s vision for W Hotels was to emphasize local culture and the surrounding environment, giving each property a unique identity. Starwood also acquired St. Regis and Westin.
Sternlicht’s creation of Starwood Hotels and Resorts received the ultimate compliment when Marriott acquired it for $12.2 billion in 2015.
More recently, Starwood Capital Group launched Starwood Impact Investors, which focuses on providing more access to diverse and women-owned real estate managers. Starwood Capital has also owned the InTown Suites extended-stay hotel chain since 2012, when it bought it for $735 million, including debt.
Sternlicht is building up the company’s offerings for outdoor stays. He introduced a Field & Stream Lodge hospitality platform with AJ Capital Partners, focusing on outdoor recreation, wellness, and nature-focused travel experiences.
As CEO, he has tried balancing financial performance with social responsibility. The firm continues to expand in various sectors of hospitality, technology, and impact investing.
Outside of Starwood, Sternlicht has advocated for policies that address affordable housing shortages, reforms to zoning laws, and more favorable tax policies that encourage investment. Sternlicht also created and partially owns “1 Hotels” alongside Starwood Capital Group, which is a brand of “sustainability-themed” hotels.
Sternlicht was a liberal arts major at Brown University and completed his MBA at Harvard Business School. He always had a passion for art. As an avid collector, he often draws inspiration from modern art and architecture, creating a contemporary aesthetic on the properties he develops and setting a new standard for luxury hospitality.
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Tags: hospitality