The new world described by the Dutch executive geographically diversified its sources of growth. The technology revolution has changed the way people relate and environment concerns have totally changed the way they value the companies.

“These factors are revolutionizing the global hospitality industry,” he says. “Today we have new generations of travelers who have very different expectations.”

Starwood’s response to these changes has generated attention in the market. Began selling many of its hotels with the aim of focusing simply on the administration of these. It was followed by the creation of new brands such as W, Aloft and Element, which have involved small revolutions in marketing between different niche travelers. And top management has focused on emerging markets in order to be where economies grow and incomes keep rising, which in 2010 reached U.S. $ 5,000 million and $ 477 million in profits. Starwood now has about 1,000 hotels in over 100 countries.

This is why it brings to Latin America. “Global growth is happening today in a very dispersed, and Latin America is a region where many opportunities,” said the Dutchman, while visiting the Hotel W in Santiago as part of a tour to prepare a new growth strategy the region.

“In Latin America, Starwood had backed mainly by Sheraton brand, which is recognized and respected, but almost from another era,” says the CEO of a major tour operators in Latin America, who prefers to remain anonymous, the business relationship you have with the chain of U.S. origin. In fact, of the 62 hotels Starwood operates in Latin America, 28 are 12 are Sheraton and Four Points by Sheraton.However, the 15 hotel projects including Starwood’s pipeline for the region over the next four years, only one of them is Sheraton. The rest are Westin, Aloft, Luxury Collection, St. Regis, which add to the two W which has opened in recent years.

Transformation in three steps. To understand Starwood plans in Latin America must understand the overall strategy that has driven Van Paasschen since assuming the leadership of the chain in late 2007.With a remarkable resume in companies that are marketing giants like Nike, Disney and the American brewer Coors, the Dutchman has transformed the Starwood business based on three concepts.

The first is to move from owning to owning hotels guests. This has prompted deep divested (sold 110 hotels since 2000 to U.S. $ 7,500 million) to focus simply on management and overall customer service, loyalty plans, better service and other technologies. “The real estate management and asset management business is very different from brand management and experience that involves operating a hotel,” says Van Paasschen. “And when you are present in 100 countries is very difficult to consistently make the best decisions for investment and development, so we prefer to have local partners who own the projects.”

The second new concept is to move to a U.S. company focused on to a global enterprise. Until recently, only 30% of Starwood’s hotel capacity coming from outside the U.S. With the opening of 340 hotels and the acquisition of the French chain Le Meridien, international business now represents 68% of capacity.The goal for the coming years is to reach 80%, for which the executive is spending a lot of time going through emerging markets. China, in fact, is home to one of three new projects in the pipeline for Starwood.

In Latin America during 2011 will open six new hotels, and three annual openings planned for the next three years. Thus, in 2015, Starwood would have 77 hotels in the region.

However, there is a minor problem to solve: Brazil. The largest economy in the region has been a mess for international chains have failed to find the path of profitable growth. “It is not lack of interest, but the cost of investing in Brazil remains very high,” he says. “But I’m sure we will find ways to grow profitably in Brazil.”

According to Jones Lang LaSalle Hotels, a global research in the area of ??the hotel market, Brazil is the biggest potential market growth in Latin America and one of the largest in the world. However, none of the projects in the pipeline, Starwood is in Brazil. The exhibit, in contrast, in Mexico will grow complicated. Starwood There is a third of its hotels in the region and plans to open three more in the coming years.

“The Mexico has been a difficult situation with the global crisis and the impact of the H1N1 virus,” says the Argentine Osvaldo V. Librizzi, president of Starwood Latin America. “We are confident in the recovery, Mexico is one of the most potential tourism markets in the world.”

The third concept included in Starwood’s revolution aside price segmentation by lifestyle segment, creating concepts, although pointing to similar public revenue, differ in their tastes.
New brands and goodbye to the star system.

“Today we talk more about personalities than income levels,” said the Dutchman. “Saint Regis is a concept that seeks to create luxury experiences around the classic, tradition, W Hotel is a contemporary design led by a very different attitude towards luxury.” In simple: while the former is intended for a wealthy banker type, the second is for an internet millionaire or entertainment.

The new brands are based on concepts rather cool in what is traditionally known as the four-star sector.Aloft, for example, offers high design derived from W, but with fewer services, while the Element is based on sustainability and efficiency in using resources to respect the environment. Hotel building concepts has become a major competitive advantage for Starwood. So much so that Van Paasschen not hesitate to put a huge legal team to push for a lawsuit against rival Hilton chain, accusing it of stealing trade secrets related to the creation of the concept W. As if it were a high-tech industry, the demand for Starwood said it hired former executives from Starwood for Hilton used confidential information to create a niche brand and drive Denizen Hotels Waldorf Astoria Collection line. “Today we are a brand of software to hardware,” explains Van Paasschen.

The settlement was eventually reached that prevents Hilton for two years to launch a lifestyle brand or boutique hotels.

Starwood brand most enhance its presence in the region is Westin. “Their goal is to make customers feel good when they arrive and when they leave,” said the Dutchman. Will debut in Peru, Panama and Costa Rica, in addition to the opening of Aloft in Bogota, a Luxury Collection Hotel in Villarrica, in southern Chile, and a St. Regis in Buenos Aires.

“The concepts and Starwood brands that are clearly driving strong,” says the Brazilian Ricardo Mader Rodrigues, executive vice president of Jones Lang LaSalle Hotels in Sao Paulo.

“Possibly for a market like Latin America would be nice to have a mark to the lowest economic segment, which currently has none, Starwood has no budget products.” That is, for example, what it has enabled the operator of hotel chains Accor French origin to achieve strong growth in the region, even in the difficult Brazilian market, where he manages nearly 145 hotels and 24,000 rooms. Accor raises open 18 new hotels in Latin America only in 2011, of which 16 are in Brazil. Most of them are brand Ibis.

For Van Paasschen, this is a business that is far from its current focus. You do not have the degree of coolness looking print formats.
And the market has valued. Starwood has increased its hotel capacity even in the midst of the crisis, and has been the fastest have recovered from the downturn in the industry that followed the fall of Wall Street in 2008. At press time, its value increased sixfold action that fell flat after the financial crisis, and developers around the world are knocking their doors to work in some of its hotel-concept. A paradox of Starwood model: say goodbye to the stars has allowed to be closer to them.