Starwood Hotels’ Founder Relaunches the Brand, but Many Questions Remain

The Starwood name, once synonymous with innovative hotels and a groundbreaking loyalty program, is being revived by its original founder, Barry Sternlicht.

Known for creating the original Starwood Hotels and its industry-changing brands like W and St. Regis, Sternlicht aims to make a mark in the hospitality industry once again. But can the reborn Starwood live up to its legacy in an industry that has transformed dramatically since it was purchased by Marriott?

Here’s what we know about this revival and what remains unclear as Starwood tries to become a household name once again.

What We Know About the Return of Starwood Hotels

Last month, we reported that Barry Sternlicht reacquired the Starwood name and planned to rebrand his existing company, SH Hotels & Resorts, under it. That has happened, coinciding with the brands 10th anniversary.

For context, Marriott purchased the Starwood brand back in 2016 and incorporated its former brands into the Marriott Bonvoy program. The former Starwood Preferred Guest loyalty program was also merged into the Marriott Bonvoy loyalty program.

The new Starwood portfolio already includes 3 existing brands: Baccarat, 1 Hotels, and Treehouse. These brands operate high-end, well-regarded properties, such as the 1 Hotel South Beach in Miami and Baccarat Hotel New York. Sternlicht has also hinted at launching a fourth brand in the near future.

“By reviving the Starwood Hotels name, we aim to marry this trusted legacy of youth, innovation, and guest focus with our modern, tech-enabled, personalized approach to hospitality,” Sternlich said. “As we take this next step, we’re doubling down on our mission to inspire, innovate, and make a difference—for our guests, our partners, and the planet.”

Expansion plans are already underway, with more than 40 new properties in the pipeline through 2028, according to a press release. Upcoming locations include a 1 Hotel in Seattle, a Treehouse in Miami, and a Baccarat in Rome. Saudi Arabia will also feature prominently in Starwood’s growth, with all 3 brands expected to debut there.

While the current footprint is small — just 14 properties across 5 countries —this revival appears to be a passion project for Sternlicht, who described designing and branding hotels as “fun” and likened this effort to a musician aiming to create a second hit song.

What We Don’t Know

Despite the excitement surrounding the Starwood revival, some critical questions remain.

First and foremost, how will Sternlicht differentiate this new Starwood from its competitors? The original Starwood stood out by introducing innovations like the Heavenly Bed and a loyalty program that offered perks like suite upgrades and guaranteed late checkout. However, these features have since been adopted by other hotel chains, making it harder for what some are calling “Starwood 2.0” to carve out a unique niche.

Additionally, the lack of scale poses a significant challenge. With only 14 properties currently, Starwood isn’t large enough to attract widespread loyalty, which typically hinges on convenience and broad geographic coverage. Sternlicht will need to convince guests to choose these boutique brands over established giants like Marriott, Hilton, and Hyatt. And those are available nearly anywhere you want to go.

Another question is whether Sternlicht’s ultimate goal is to remain independent or position the brand as a future acquisition target — building another brand that he can sell at a profit as he did previously — though he has hinted he might want to avoid doing this again with the new Starwood.

Final Thoughts

The revival of Starwood brings a sense of nostalgia for those who remember its heyday as a pioneer in lifestyle hotels and loyalty programs. Barry Sternlicht’s passion and track record suggest that this could be a promising venture, but significant hurdles remain. In a crowded and competitive hospitality market, Starwood will need to innovate again to win over travelers. Simply reusing a brand name people loved in the past won’t be enough for the present.

While it’s exciting to see the return of a beloved brand, we’re keeping our expectations realistic. Whether Starwood 2.0 will be a disruptor like its predecessor or a boutique player catering to a niche audience remains to be seen. Either way, Sternlicht’s vision for the future will be worth watching.

We’ve seen the first step forward with the name change. What comes next? We’ll have to wait and see.