Starwood's luxury brands have doubled in scale over the last five years and will continue to be a major growth area for the company, Frits van Paasschen, CEO of Starwood Hotels & Resorts Worldwide, told CNBC's "Squawk on the Street" Tuesday.
Starwood said Monday it will add 50 luxury hotels over the next five years in 12 countries, making the announcement ahead of the company's investor day in Dubai. The hotel operator described this move as part of its "laser focus on luxury," as it looks to target younger customers. Starwood also estimates that 90 percent of its future luxury hotels will open in emerging markets, van Paasschen said.
After the company announced a continued expansion of its luxury hotel portfolio, investors in the options market made bullish short-term bets on the company as Starwood shares neared two-year highs. According to OptionMonster, bullish option volume on Starwood was seven times its daily average compared to the past month, with calls outnumbering puts 9 to 1. Starwood shares were down slightly in morning trading Tuesday.
(Read More: Bulls Look for Fast Money in Starwood)