During Starwood’s Q3 earnings call on Oct. 28, interim CEO Adam Aron revealed details on a new brand that will be unveiled in November. He described the venture as a marketing partnership with Design Hotels that will equate to Starwood’s 11th brand.
“This will fill a special niche in Starwood’s portfolio, incorporating a hand-picked collection of independently owned smaller properties committed to individuality, progressive design, and cultural authenticity,” said Aron.
The company became a majority investor in 2011, but maintained a passive relationship with Design Hotels. Now, the two companies will join forces as full marketing partners within the Starwood system. The move will increase Starwood’s fee stream in exchange for Design Hotels receiving the benefits of Starwood distribution and loyalty rewards, he said.