He added that Starwood will be announcing shortly a number of deals with developers for the newly designed Starwood and Westin suburban properties. Lineham notes that Starwood also plans to build a number of these facilities on its own.

The Westin prototype, designed for upscale markets, will feature a glass and natural stone lobby, 207 guest rooms, including six junior suites and one hospitality suite. Additionally, the Westin prototype calls for a restaurant, a lobby bar and a health club with an indoor swimming pool and whirlpool. Starwood officials estimate the Westin prototype would cost $125,000 per key, not including land acquisition costs, or $25.875 million.

Starwood says it has two Sheraton prototype designs; one would involve a 250-to-300 guest room facility, while another would have between 150 and 250 rooms for smaller markets. The exterior design of the Sheraton prototype features urban architecture with a 19th century American park design. The prototype will feature the new Sheraton guest room, a traditional "Ralph Lauren-like" design with rich jewel-tone colors and mahogany desks, Starwood officials note.

The cost for the larger (250-300 guest room) prototype will run approximately $95,000 per key, without land acquisition costs, or approximately $28.5 million. The smaller prototype would cost about $85,000 per key or approximately $21.25 million, not including the purchase of the raw land. The Sheraton prototypes would also feature a restaurant, food and beverage services and an indoor swimming pool and whirlpool

"These prototypes will be a terrific growth vehicle for both the Sheraton and Westin brands due to the equity requirement based on their scalability," Darnall says. "We are encouraged by the high level of interest these prototypes have received from franchisees and developers. And no wonder, the economics are extremely favorable and that's why Starwood is also pursuing sites for our own development."

"New suburbia" locations generally offer a strong commercial and retail market, mixed with clustering of high-end residential retail development. Starwood officials said suburbs outside of Seattle and Atlanta are prime examples of "new suburbia" locations. They also cite Princeton, NJ as having most of the characteristics of a "new suburbia" locale. Starwood recently announced that the former Forestal Village Marriott in Princeton was converted into a Westin-flagged facility as of Sept. 30.