In order to invest in more budget hotels, Starwood Capital may sell some of its high-end luxury hotels such as Le Crillon hotel in Paris. Articles have been publishing stating that the hotel has gone on sale for US$420m. However, according to Reuters he denied that there was a deal to sell Le Crillon. The company is also hoping to find a partner to invest with and Sternlicht said he wanted to grow the budget sector because the Campanile brand had been very successful so far.
As well as budget hotels, Starwood Capital is intent on focussing on the environmental aspect of building hotels. The idea behind the 1 Hotels and Residences was that it would be a sustainable architecture combined with good service and luxury. They were to be built in such a way that would minimise their impact on the environment and 50 per cent of their energy was to be derived from renewable sources. Some proceeds from the hotel were also to go towards environmental charities.
Forever the business man, Sternlict has said in the past that ‘if it’s profitable to be green, then that’s just smart business.’ He believes that there is a niche market for green hotels because there currently only exists a handful of them in the US. Since 1 Hotels and Residences have been put on the back burner for now, Sternlicht is focussing on other ways to be environmentally conscious.
Last week he completed an agreement with Starwood SSM1 Canada Imcorporated to construct a 20 megawatt solar photovoltaic project in Ontario, Canada. The project is to be the largest in North America and is to power up to 8,000 Ontario homes and dramatically reducing carbon emissions. The reduction will amount to displacing 3,8000 cars and light trucks each driving 12,000 miles per year, or to planting more than 16 million trees in Ontario’s forests. The plan was devised by Starwood Energy Group, a spinoff from Sternlicht’s Starwood Capital.
It seems no matter what Barry Sternlicht is up to, he is constantly busy. Who knows what other ideas are up his sleeve, but here at HotelDesigns we are keen to find out.
Carmen Allan
First published in the DesignClub on 15th Feb 2010
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