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  • 1. 1WELCOME TO DUBAI
  • 2. 2FORWARD-LOOKING STATEMENTSThese presentations contain forward-looking statements within the meaning of federal securities regulations. These forward-looking statements generally can be identified by phrases such as Starwood or its management “believes,” “expects,”“anticipates,” “foresees,” “forecasts,” “estimates” or other words or phrases of similar import. Similarly, statements in this releasethat describe the Company’s business strategy, outlook, objectives, plans, intentions or goals also are forward-lookingstatements. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties and otherfactors that may cause actual results to differ materially from those anticipated at the time the forward-looking statements aremade. Future results, performance and achievements may be affected by general economic conditions including the severity andduration of any downturn in the US or global economy, the impact of war and terrorist activity, business and financing conditions,including the availability of mortgage financing, foreign exchange fluctuations, cyclicality of the real estate, including the sale ofresidential units, and the hotel and vacation ownership businesses, operating risks associated with the sale of residential units,hotel and vacation ownership businesses, relationships with associates, customers and property owners, the impact of theinternet reservation channels, our reliance on technology, domestic and international political and geopolitical conditions,competition, governmental and regulatory actions (including the impact of changes in U.S. and foreign tax laws and theirinterpretation), travelers’ fears of exposure to contagious diseases, risk associated with the level of our indebtedness, riskassociated with potential acquisitions and dispositions, and other circumstances and uncertainties. There can also be noassurance that agreements will be entered into for the hotels in the Company’s pipeline and, if entered into, the timing of anyagreement and the opening of the related hotel. These risks and uncertainties are presented in detail in our filings with theSecurities and Exchange Commission. Although we believe the expectations reflected in such forward-looking statements arebased upon reasonable assumptions, we can give no assurance that our expectations will be attained or that results will notmaterially differ. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result ofnew information, future events or otherwise.Please note that these presentations include non-GAAP financial measures. For definitions of certain terms used herein and apresentation of the most directly comparable financial measure calculated and presented in accordance with GAAP and areconciliation of the differences between the non-GAAP financial measure disclosed and the most comparable financial measurecalculated and presented in accordance with GAAP, please refer to the Company’s web site atwww.starwoodhotels.com.corporate/investor_relations.html.
  • 3. ©2013 STARWOOD HOTELS & RESORTS WORLDWIDE, INC. | Proprietary & ConfidentialFRITS VAN PAASSCHEN // CHIEF EXECUTIVE OFFICER3
  • 4. 4Shareholder Value CreationFrits van Paasschen 8:30-9:00Strategy and OutlookMiddle East Review Guido de Wilde 9:00-9:40South Asia Review Dilip Puri 9:40-10:00BreakStarwood Strategy : Individual Spiritand Collective StrengthFrits van Paasschen 10:15-11:15Starwood Investment Proposition Vasant Prabhu 11:15-12:15Break3-Year Outlook Vasant Prabhu 12:30-1:00Q&A All 1:00-1:30LunchOur Agenda Today
  • 5. 5SHAREHOLDER VALUECREATION AT STARWOODTHE WESTIN DUBAI MINA SEYAHI BEACH RESORT & MARINA
  • 6. 6ShareholderValue Creation atStarwood»Sustaining Innovation»Delivering Operational Excellence»Growing the System»Executing Asset Light Strategy»Generating Significant CashSHAREHOLDER VALUE CREATION AT STARWOODS&P98%MAR164%HOT256%10-Year Total Shareholder ReturnSource: Bloomberg. Represents 10-year total shareholder returns from 31-Dec-02 through 31-Dec-12 with monthly returns and reinvestment in security6
  • 7. 7SustainingInnovation» W Hotels (1998)» Westin “Heavenly” (1999)» Aloft and Element (2008)» Le Méridien Reinvention (2009)» Link at Sheraton (2009)» SPG Transformation (2012)» Mobile Platform (2012)» Crossover Rewards (2013)SHAREHOLDER VALUE CREATION AT STARWOOD7
  • 8. 8Delivering OperationalExcellenceAL MAHA DESERT RESORT AND SPA, DUBAITHE CHATWAL, A LUXURY COLLECTION HOTEL» RPI Gains of nearly 200bps» SPG share of occupancy from 42% to over 50%» Company Operated Hotel GOP Margins +270bps» Owned Hotel Margins +260bps» SG&A per room down over 25% since pre-crisis levelsSHAREHOLDER VALUE CREATION AT STARWOOD2009 - 2012Note: Samsestore 2012 margins vs. Samestore 2007 Margins for Company Operated and Owned/Leased Hotels 8
  • 9. 95% Net Rooms GrowthGrowingthe System» 5% net rooms growth since 2004» 100k room, 400 hotel pipeline (30%future growth)» Fastest growing luxury hotel portfolio» Largest global upper-upscale (5 star)hotel company100200300400OperatingRoomsSHAREHOLDER VALUE CREATION AT STARWOOD9
  • 10. 10Executing Asset-Light StrategyTHE ST. REGIS BAL HARBOUR RESORTALOFT LEXINGTON, MA» Sold 14 hotels since 2009» Proceeds of over $1.25B» Average EBITDA multiple over 16x» Sold and Closed over 73% of Bal Harbour units» Sell-Out in 2013 likely» Targeting total sales over $1B» Starwood Vacation Ownership cash generation ofalmost $800 million since 2009SHAREHOLDER VALUE CREATION AT STARWOOD10
  • 11. 11ExtraordinaryCash Generation» Reduced net debt from over $3.5B in 2008to just over $800M by 2013» Returned $1.7B to shareholders in since 2008» Increased Dividend by 150% in 2012; 2% yield» Repurchased over 6M shares in 2012» …While investing in our core business to drivegrowth and build capabilitySHAREHOLDER VALUE CREATION AT STARWOOD$3,248$3,523$2,826$2,051$1,511$8111/120081/120091/120101/120111/120121/12013Net Debt Reduction of $2.4B since 200811Note: Net debt consists of Long-term debt and short term debt, net of cash equivalents and restricted cash
  • 12. 1STARWOOD STRATEGYAND OUTLOOKTHE WESTIN DUBAI MINA SEYAHI BEACH RESORT & MARINA12
  • 13. 2DramaticGrowth in theGlobal MiddleClass» It took 100 years ofeconomic growth for theMiddle Class to reach 1billion» 20 years to reach 2billion» In next 20 years, thenumber of peopleconsidered MiddleClass will reach 5 billionSTARWOOD STRATEGYAND OUTLOOK1890 1990 2010 20302BILLION5BILLION1BILLIONSource: OECD 13
  • 14. 3RapidUrbanization» With the Rise in theMiddle Class andwealth, more people willlive in cities» Global Urbanization– 1950: 30%– 2010: 50%– 2050: 70%STARWOOD STRATEGYAND OUTLOOKSource: UN World Urbanization Prospects 14
  • 15. 4MassiveInfrastructureDevelopment» More infrastructure willbe built in the next 40years than in all ofhuman history» Hotels = InfrastructureSTARWOOD STRATEGYAND OUTLOOKSource: National Intelligence Council 15
  • 16. 5REVOLUTIONIN GLOBALTRAVEL» 3 billion people enteringthe global economy» Regional travel patternsare evolving» Enormous outboundtravel opportunity fromFast Growing Markets» Rise of the “MegaTravelerSTARWOOD STRATEGYAND OUTLOOKSource: OECD2011–2030CAGR5%3%5%3%EuropeAsia PacificAmericasAfrica MiddleEast2004006008001,0001,2001,4001,6001,8001990 1995 2000 2005 2010 2015 2020 2025 2030Number ofTourist Arrivals(in millions)TOURIST ARRIVALS BY ORIGIN16
  • 17. 6Starwood: the Best Positioned HotelCompany to Capitalize on SecularGrowth Trends in TravelSHERATON DUBAI MALL OF THE EMIRATES HOTELSHERATON ADDIS» Leading Global Hotel Company in High Growth Markets» Best Global High-End Lodging Brands» High Quality Global Pipeline» High Value Global Owned Hotel Portfolio» Unmatched Global Platform» Extraordinary Cash Generation PotentialSTARWOOD STRATEGYAND OUTLOOK17
  • 18. 7STARWOODSTRATEGY:INDIVIDUALSPIRIT,COLLECTIVESTRENGTH» Starwood’s brands lie atthe heart of ourcompetitive advantage» Distinguished by acombination of LifestyleConcepts, DesignLeadership andInnovation» Collective strength ofSPG and Starwoodcentralized services(Sales, RevenueManagement, Web) unifyour brands and driveperformanceSTARWOOD STRATEGYAND OUTLOOK18
  • 19. 8STARWOOD STRATEGYAND OUTLOOKStarwood OutlookWESTIN DUBAI MINA SEYAHI BEACH RESORT &MARINA» Secular demand gains in Growth Markets» Below-trend supply growth in Mature Markets» Sharp rebound in owned hotel profits» Significant cash generation from hotel operations,asset sales and timeshare819
  • 20. 9Starwood 3-Year Outlook»5-7% annual RevPAR growth achievable 2012-2015 with continued cyclical recovery»10-12% annual EBITDA growth & 16-20% annual EPS Growth»$3.0B to $3.3B of operating cash flow and balance sheet capacity»80/20 Asset Light goal by 2016 could generate ~$3B in cash»Significant capacity to fund growth investments and return cash to shareholders overnext three yearsSTARWOOD STRATEGYAND OUTLOOK20
  • 21. ©2013 STARWOOD HOTELS & RESORTS WORLDWIDE, INC. | Proprietary & ConfidentialGUIDO DE WILDE // SVP, REGIONAL DIRECTOR – MIDDLE EASTSTARWOODIN THE MIDDLE EAST21
  • 22. 22WELCOMETO DUBAI‫ﺩﺑﻲ‬ ‫ﻓﻲ‬ ‫ﺑﻛﻡ‬ ‫ﻣﺭﺣﺑﺎ‬» A city at the centerof one of the mostdynamic regions inthe world22
  • 23. 33MIDDLE EASTIS A REGIONTHATMATTERS» Melting pot of diverseand complex politics andreligions» Rich and complex history» Growing population» At the crossroadsof globalization23
  • 24. 44RICHHISTORY» History dates backto 3500BC» Innovations in language,culture, science» Birthplace of Judaism,Christianity and Islam24
  • 25. 55FASTGROWINGDYNAMICPOPULATION» >50% of population under 30years» 1990-2008, populationgrowth rate was higher thanIndia and China, andremains high» Mosaic of over 350M people» The UAE’s population is7.5M» 2M in Dubai alone with 5%growth in 2012Source: OECD/ World Bank 2010; Dubai Statistics Centre25
  • 26. 6MIDDLE EAST IS AT THE CROSSROADS OF GLOBALIZATION» Trade between China andArab world and trade withAfrica has increasedtenfold» UAE, Qatar and Saudibecoming important hubs» By 2030, travel into theregion is expected totriple to 149M arrivals» Outbound travel is up400% in last 20 years» Expected to reach 80Moutbound trips annuallyby 2030Source: UNWTO26
  • 27. 77NOT JUSTABOUT OIL» 60% of world’s totalproven oil reserves» Despite economiccrisis, some of thehighest per capitaincomes globally» Dramatic Growthin inbound andoutbound tourism» Arrivals up over 7% peryear since 2005» Outbound travelup 8% per yearsince 2005Sources: OPEC; UNWTO27
  • 28. 88SHEIKH ZAYEDROAD – THEN» Transformationof Dubai» Open-Skies policy» Free Economic Zones» Promotion of tourism» 600k population in 1993» 167 Hotels in 1993Sources: Dubai Statistics Center; Gulf News28
  • 29. 99SHEIKH ZAYEDROAD – NOW» UAEs hospitality market» Revenues of $7.5Bby 2016» +67% over 2011» 2.1M population» 326 HotelsSources: Khaleej Times, UAE; Alpen Capital Hospitality Report; Dubai Statistics Center29
  • 30. 10OTHERSFOLLOWINGDUBAI’S LEAD» Abu Dhabi focusing on culturewith branches of theGuggenheim and Louvreopening, along with the ZayedNational Museum» Qatar investing $11B in newDoha international Airport, $6Bin Doha Port project and $25Bin other infrastructure» Saudi Arabia constructing the$86B King Abdullah EconomicCity30
  • 31. 11STARWOOD’SMIDDLE EASTADVANTAGEWESTIN DUBAI MINA SEYAHI BEACH RESORT & MARINASHERATON DUBAI MALL OF THE EMIRATES HOTEL» First mover advantage» Strong local brand recognition» Deep local relationships» Leading loyalty program andglobal infrastructure» Innovative Food and BeveragePrograms» Best in class talent31
  • 32. 12STARWOOD HAS BEEN IN THEREGION FOR FIVE DECADES1966 1982 20091984197820122010Sheraton Kuwait – Starwood’s firsthotel outside of the U.SStarwood enters Qatar andPakistan with Sheraton Entry of W and Aloft brandsGrowth in emerging markets –opening of Sheraton Dushanbe andsigning of Sheraton AktobeLuxury Collection takes overoperation of Grosvenor Houseand Al MahaDebut in UAE and KSA with SheratonDubai Hotel Creek & Towers andLe Méridien MedinaOpened the first worldwidereservations office in the region(Bahrain)Signing of Sheraton Erbil –marking Starwood’s re-entryinto Iraq after 20 yearsFIRST-MOVER ADVANTAGE32
  • 33. 13OUR EXPERIENCEGIVES US ANADVANTAGE» 79 hotels (operating + pipeline)» More than 22,000 rooms in 13 countriesUAE33 HOTELS – 21 OPERATING, 12 PIPELINESAUDI ARABIA15 HOTELS - 9 OPERATING, 6 PIPELINEOTHER31 HOTELS - 15 OPERATING, 16 PIPELINE45 Operating34 Pipeline (Executed)FIRST-MOVER ADVANTAGE33
  • 34. 14THE LARGEST LUXURY/UPPER –UPSCALE HOTEL COMPANYIN THE MIDDLE EAST4525 221101020304050Starwood Marriott Hilton HyattMIDDLE EAST HOTELSFIRST-MOVER ADVANTAGESource: STR Census as of December 2012; Starwood Internal Data34
  • 35. 15DIVERSE PIPELINE BY BRANDS AND MARKETSheraton26%Le Méridien3%Westin9%St.Regis8%W14%The LuxuryCollection9%Four Points bySheraton17%Aloft11%Element3%BY BRAND34 PIPELINE HOTELSUAE34%KSA20%Levant14%Iraq9%Oman9%Qatar3% “Stan”Countries11%BY MARKETFIRST-MOVER ADVANTAGE35
  • 36. 16ACCELERATINGGROWTH45 HOTELS TODAY80 HOTELS IN 2016100 HOTELS IN 2019FIRST-MOVER ADVANTAGE36
  • 37. 1717THE ST. REGIS SAADIYAT ISLAND RESORTABU DHABI37
  • 38. 1818THE ST. REGISDOHA38
  • 39. 1919THE ST. REGISABU DHABI39
  • 40. 20MULTI-BRAND PROJECT – DUBAI40
  • 41. 213 X DUBAI MUSCAT AMMAN ABU DHABI41
  • 42. 22ERBIL, IRAQDUSHANBE, TAJIKISTANAKTOBE, KAZAKHSTAN42
  • 43. 23OUR BRANDSRESONATE WELLIN THE MIDDLEEASTSHERATON KUWAIT AND FOUR POINTS BY SHERATON KUWAITSHERATON DUBAI MALL OF THE EMIRATES» Second region after NorthAmerica to have all nine brands» Increasing number ofconversion opportunities» Rejuvenation of Sheraton andLe Méridien with renovations» Expansion of existing propertiesto meet high-demand» High-levels of guest satisfaction43
  • 44. 24DEEPRELATIONSHIPSBUILT ONDECADESOF TRUST» We have a deep understandingof this part of the world» Right teams in place to deliverthe promise» Strong relationships with someof the most influential royalfamilies» Highly influential royal familiesare some of the most importantowners of the hotels we operate44
  • 45. 2525TAILWINDFROM OURGLOBALPLATFORM:SPG» Members based in theMiddle East accounted for350,000 stays in 2012» SPG community in theMiddle East spends wellabove the global average» SPG accounted for 51%share of occupancy in 2012» 21 SPG point “millionaires”in the region45
  • 46. 2626GORDON RAMSEY JEAN GEORGES VONGERICHTEN GARY RHODESIMPACT OFFOOD ANDBEVERAGE» Operate 277 Restaurantsand Bars» Relationships with worldclass chefs» F&B accounts for 43% ofregions total revenue in2012» SPG and F&B Integration46
  • 47. 27BEST IN CLASSTALENT» Associates from over 100different nationalities, speakingover 50 languages» Approximately 12% of ourworkforce are local nationals» House close to 16,000associates in staffaccommodations, serve over 15million meals per year» 20,000 associates by the end of201347
  • 48. 2828ALOFT RIYADH48
  • 49. 2929AJMAN PALACE,A LUXURY COLLECTIONHOTEL49
  • 50. 3030W ABU DHABI50
  • 51. 3131SHERATON DUBAISHEIKH ZAYED ROADSHERATON SHARJAH51
  • 52. 32STARWOOD’SMIDDLE EASTADVANTAGEWESTIN DUBAI MINA SEYAHI BEACH RESORT & MARINASHERATON DUBAI MALL OF THE EMIRATES HOTEL» First mover advantage» Strong local brand recognition» Deep local relationships» Leading loyalty program andglobal infrastructure» Innovative Food and BeveragePrograms» Best in class talent52
  • 53. ©2013 STARWOOD HOTELS & RESORTS WORLDWIDE, INC. | Proprietary & ConfidentialDILIP PURI // MANAGING DIRECTOR, INDIA & REGIONAL VICE PRESIDENT, SOUTH ASIASTARWOODIN SOUTH ASIA53
  • 54. ANCHORED BY INDIA,SOUTH ASIA IS A REGIONOF OPPORTUNITY» India GDP expected to grow 8% for next 40 years» Moving from 10th largest global economy to 6thlargest by 2017» On track to become world’s 5th largest consumermarket in 2030» Recent government reforms improving the outlook» Central bank easing interest rates» Raising caps on Foreign Direct Investment in certainsectors: Retail, Aviation, InsuranceW MUMBAISources: World Bank, Global Business Travel Association ("GBTA"), McKinsey “Rise of the Indian Consumer”, CAPA India, HVS T&O report 201254
  • 55. LARGE AND GROWINGTRAVEL MARKET» Population of 1.4B across region, growing fasterthan China» Travel and tourism is over 6% of India’s GDP1» Arrivals to India at 5.8M, growing at 12% rate» 13M outbound travelers in 2011, growing to 50M by2020» Total domestic traffic at all Indian airports is forecast togrow from 105M to 356M by 2021» Sri Lanka and Maldives are among the top 10destinations for 2013» Bhutan and Nepal emerging as fast growingresort marketsSHERATON BANGALORESources: World Travel & Tourism Councils (WTTC) Economic Impact 2012; CAPA India55
  • 56. STARWOOD’SSOUTH ASIAADVANTAGELE MERIDIEN NEW DELHISHERATON MALDIVES FULL MOON RESORT & SPA» First mover advantage» Strong local brand recognition» Locally smart regional team andlocal infrastructure» Leading loyalty program» Best in class talent programs» Innovative food and beverageprograms56
  • 57. 5OUR FIRST-MOVER ADVANTAGE» Opened 1st Westin in India» 2009: Launched Four Points inIndia with 2 new openings» Signed 1st Westin managementcontract ; 1st new-build non-ITC hotelin India» Acquisition of Le Méridien brandglobally; Added 8 Le Méridiens to Indiaportfolio» Launched Aloft in India with 2 newopenings» 1973: 1st Sheraton in India- Oberoi Sheraton, Mumbai» 1979: Partnership with ITC» Established Starwood SalesOffice» Opened India CustomerContact Center in Gurgaon20102005 2011197319792009» Opening of Sheraton inBangalore (1st managedSheraton; non-ITC)2007 2012» Debut into Sri Lanka withsigning of Sheraton andFour Points» Expansion in Bangladeshwith signing of Sheratonand Le MéridienFIRST-MOVER ADVANTAGE57
  • 58. OUR FIRST MOVER ADVANTAGEHAS ALLOWED US TO BUILDA SIGNIFICANT FOOTPRINTACROSS SOUTH ASIA» 69 hotels (operating + pipeline)» More than 16,300 rooms in 6 countriesIndiaBhutanBangladeshSri LankaMaldives38 Operating31 Pipeline (Executed)INDIA61 HOTELS – 35 OPERATING, 26 PIPELINEOTHER SOUTH ASIA8 HOTELS - 3 OPERATING, 5 PIPELINETotal69 HOTELS - 38 OPERATING, 31 PIPELINE6FIRST-MOVER ADVANTAGE58
  • 59. 7STARWOOD IS THE LARGEST INTERNATIONALHIGH-END HOTEL COMPANY IN SOUTH ASIASource: STR Census as of December 2012,Upper-Upscale and Luxury Rooms7FIRST-MOVER ADVANTAGE0123456789Rooms (000’s)Upper Upscale/ Luxury Rooms59
  • 60. 8DIVERSIFIED FOOTPRINT ACROSS ALL BRANDSSource: Starwood internal data as of March 1, 2013FourPoints9% Aloft7%Le Méridien16%Westin18%Sheraton22%LuxuryCollection18%W8%St. Regis2%FourPoints6%Aloft7%Le Méridien18%Westin19%Sheraton13%LuxuryCollection36%W1%PIPELINE + OPERATING ROOMS8OPERATING ROOMSFIRST-MOVER ADVANTAGE60
  • 61. BROAD REACH ACROSSPRIMARY ANDSECONDARYCITIES IN INDIA» Operating in 21 cities & 14 states» 8 new cities in pipeline» Strong penetration in Tier II & IIImarkets with Four Points and Aloftbrands» 8 operating hotels with another 5 expectedopenings in 2013 and a robust pipeline» Strong distribution including all upper-upscale brands in key Tier I markets» 14 Starwood hotels in Delhi NCR» 4 cities with more than 6 Starwood hotels» 6 cities with operating and pipeline hotels» Growth in resort locations» Growing from one property to 6 by 2015-16Madhya PradeshMaharashtraAndhra PradeshOrissaJharkhandBiharUttar PradeshJammu & KashmirHimachalPradeshChhattisgarhTamil NaduKarnatakaGujaratRajasthanPunjabHaryanaUttaranchalWest BengalAssamMeghalayaPondicherryGoaOperatingPipelineOperating + Pipeline9FIRST-MOVER ADVANTAGE61
  • 62. OPENINGS IN 2013 & 2014SHERATON CHANDIGARH HOTEL177 ROOMS, 2013SHERATON GREATER NOIDA HOTEL267 ROOMS, 2014SHERATON BANGALORE WHITEFIELDHOTEL & CONVENTION CENTER325 ROOMS, 2014THE WESTIN CHENNAI VELACHERY215 ROOMS, OPEN FEB 2013THE WESTIN BEKAL RESORT & SPA156 ROOMS, OPENING 2014LE MERIDIEN MAHABALESHWARRESORT & SPA126 ROOMS, OPENING IN 201310FIRST-MOVER ADVANTAGE62
  • 63. OPENINGS IN 2013 & 2014FOUR POINTS BY SHERATON GURGAONFARIDABAD ROAD154 ROOMS, 2014ALOFT AHMEDABAD SG ROAD176 ROOMS, 2013W RETREAT & SPA GOA105 ROOMS, 2014ALOFT BENGALURU CESSNABUSINESS PARK190 ROOMS, OPENING 2013ALOFT NEW DELHI AEROCITY200 ROOMS, OPENING 201411FIRST-MOVER ADVANTAGE63
  • 64. STRONG LOCAL BRAND RECOGNITION2011 & 2012 BEST HOTEL COMPANY (WORLD) – Travel & LeisureBEST BRAND DEVELOPMENT ACROSS CHAIN – SATTEFASTEST GROWING HOTEL CHAIN 2012 – Today’s Traveller2011 & 2012 FAVORITE LOYALTY PROGRAM – Conde Nast Traveler India Reader’s Choice2012 BEST HOTEL LOYALTY PROGRAM – World Travel Awards2012 FAVORITE HOTEL LOYALTY PROGRAM – Travel & Leisure2011 BEST NEW OPENING HOTEL (UPSCALE) SHERATON BANGALORE – HICSABEST INTERNATIONAL RESORT – W MALDIVES RETREAT &SPA – Lonely Planet2010 BEST NEW OPENING HOTEL (LUXURY ) – WESTIN MUMBAI – HICSABEST NEW OPENING SPA (HOTEL) HEAVENLY SPA – WESTIN MUMBAI – ASIA SPABEST HOTEL FOR BUSINESS TRAVELERS ( WOMEN) RUNNERS UP WESTIN MUMBAI– Travel & LeisureFAVORITE NEW OPENING HOTEL (INDIA) – 3rd WESTIN GURGAON – Conde NastTraveler India Reader’s ChoiceTOP 25 TRENDIEST HOTELS – WESTIN HYDERABAD – TripadvisorTOP 25 TRENDIEST HOTELS – TripadvisorTOP 25 TRENDIEST HOTELS – LE MERIDIEN NEW DELHI – TripadvisorBEST CONVENTION HOTEL – LE MERIDIEN KOCHI – National Tourism Awards1264
  • 65. 1313Westin Brand in South Asia outperforms competitionWESTIN BRANDLAUNCH» First Westin resort openedin 2007 with 4 successiveWestin openings in thenext 18 months» Westin makes historyas the fastest internationalbrand launch in Indianhospitality» Superior RevPar Index andMargin Delivery» 6 operational and 5 hotelsin pipeline in IndiaWestin India Footprint2007 OpenedThe Westin Sohna Resort & Spa2009 OpenedThe Westin Pune Koregaon ParkThe Westin Hyderabad Mindspace2010 OpenedThe Westin Mumbai Garden CityThe Westin Gurgaon, New Delhi2013 OpenThe Westin Chennai Velachery2014 OpeningThe Westin Bekal Resort & Spa2015/16 OpeningThe Westin Jaipur, Infotech CityThe Westin KolkataThe Westin Khandala Resort & SpaThe Westin Noida Delhi NCR84.5 96.8 111.769%70%75%65%66%67%68%69%70%71%72%73%74%75%76%0204060801001202010 2011 2012RPI SPG Occ %13STRONG LOCAL BRAND RECOGNITION65
  • 66. LOCALLEADERSHIPSUPPORTEDBY LOCALINFRASTRUCTURESTARWOOD SALES OFFICE IN INDIA (EXISTING AND EXPANSION)NEW REGIONAL OFFICE IN GURGAON» Local operations and developmentteam with deep experience» Sales offices located across region» 8 regional offices open, with3 additional planned» New regional office in Gurgaon» Selling to local and internationalbusinesses» Starwood’s 9th Global CustomerContact Center and the 4th in Asia-Pacific1466
  • 67. STRONG ANDRELEVANTLOYALTYPROGRAM» 2nd Fastest growing activemember base in Asia Pacific» Local business - India is theleading SPG feeder market forIndia hotels by members &stays» 27% growth in activemembership and 37% growth inSPG enrollment since 2011» Strong recognition in India –through readers choice awardsfrom Conde Nast, Travel &Leisure etc.1567
  • 68. BEST IN CLASSTALENTRegional Team – “Play as a Team” offsite in JaipurRegional Team with Starwood Senior Leadership Team» Graduate ManagementProgram (GMAP)» Development of strong internal& external bench strength» Starwood Class - 12 monthsinternship programme inStarwood properties» Cross Exposure & InternationalWork Experience Program1668
  • 69. INNOVATIVE F&BPROGRAMSTHE WESTIN GURGAON, NEW DELHI – “SEASONAL TASTES”THE WESTIN HYDERABAD MINDSPACE – ”PREGO” - THE ITALIAN DESTINATION» Eat Drink & More – diningloyalty program with strongpan-India membershipenrollment» SPG Restaurant & Bars –loyalty and enrollment throughF&B» Award winning BrandedRestaurant Concepts across allStarwood brands – Prego, Eest,Bene, Favolla, Kangan,Seasonal Tastes etc.1769
  • 70. MUMBAI70
  • 71. SHERATON CHANDIGARH HOTEL71
  • 72. LE MERIDIEN MAHABALESHWAR RESORT & SPA72
  • 73. LE MERIDIEN MAHABALESHWAR RESORT & SPAWESTIN CHENNAI73
  • 74. STARWOOD’SSOUTH ASIAADVANTAGELE MERIDIEN NEW DELHISHERATON MALDIVES FULL MOON RESORT & SPA» First mover advantage» Strong local brand recognition» Locally smart regional team andlocal infrastructure» Leading loyalty program» Best in class talent programs» Innovative food and beverageprograms74
  • 75. ©2012 STARWOOD HOTELS & RESORTS WORLDWIDE, INC. | Proprietary & ConfidentialFRITS VAN PAASSCHEN // CHIEF EXECUTIVE OFFICERSTARWOOD STRATEGY75
  • 76. INDIVIDUALSPIRIT,COLLECTIVESTRENGTH» Starwood’s brands lie atthe heart of ourcompetitive advantage» Distinguished by acombination of LifestyleConcepts, DesignLeadership andInnovation» Collective strength ofSPG and Starwoodcentralized services(Sales, RevenueManagement, Web) unifyour brands and driveperformance76
  • 77. NINEDISTINCTGLOBALLIFESTYLEBRANDS»Renowned lifestylehospitality brands withfour and five starfocus»1,134 properties»335,415 rooms»Nearly 100 countries»In 2012, signed mostdeals since before theeconomic crisis» Uncompromising,Address, Bespoke» 30 hotels» 6413 rooms» 15 countries» Exceptional, Indigenous,Experience» 85 hotels» 16,366 rooms» 29 countries» Flirty, Insider,Escape» 44 hotels» 12,369 rooms» 18 countriesLUXURY» Personal, Instinctive,Renewal» 192 hotels» 74,626 rooms» 35 countries» Warm, Connected,Community» 427 hotels» 149,784 rooms» 69 countries» Chic, Cultured,Discovery» 96 hotels» 25,347 rooms» 41 countriesUPPERUPSCALE» Sassy, Savvy, Space» 62 hotels» 9,859 rooms» 10 countries» Smart, Alive,Balance» 10 hotels» 1,641 rooms» one country» Honest, Uncomplicated,Comfort» 171 hotels» 30,924 rooms» 29 countriesSELECTSERVICE77
  • 78. STARWOODINNOVATESWITH APASSION»Innovation is theheartbeat of ourbrands and ourdesign. It is how wedeepen ourrelationships with ourguests and ourcustomers and standapart from the rest»One great idea createsanother, givingStarwood the ability tobuild upon oursuccess across ninecompelling brands78
  • 79. STARWOOD CREATESEMOTION BY DESIGN»Our guests don’t justcheck in to a hotel.They are immersed inan experience»At Starwood, designdoesn’t begin with ablueprint. It beginswith a story. And foreach of our ninebrands, that storycaptures the emotionsand aspirations of ourguests»Design That Can OnlyBe Starwood79
  • 80. ST. REGISRedefining Luxury, Leading the Competition80
  • 81. BEYONDEXPECTATIONINSPIRED BY THE NEWGLOBAL ELITE» Global leader in luxury» More than doubled to 30hotels since 2007 –tripling to almost 40hotels by 2015» Global expansion – 3new hotels in China(2011), entry into theMiddle East with 3 newhotels & first hotel inAfrica (2012)81
  • 82. ST. REGIS BUTLER SERVICE IRIDIUM SPAST. REGIS AFICIONADO WORLD-CLASS RESTAURANTS AND CHEFSUNPARALLELEDEXPERIENCES» St. Regis Aficionado™» Privileged access tounique experiences» St. Regis Butler Service» World-class restaurants» Award-winning chefs» Rituals» Bloody Mary &Afternoon Tea» St. Regis Connoisseurs» Polo» Jazz» Jazz at Lincoln Center atThe St. Regis Doha82
  • 83. 2013 – 2015Abu Dhabi, Amman,Cairo, Changsha,Chengdu, Kuala Lumpur,Lijiang, Riviera Maya,Zhuhai13 HOTELS62% NORTH AMERICANOPERATING & PIPELINE49 HOTELS24% NORTH AMERICAN2007Aspen, Atlanta, Bahia Beach, Bal Harbour, Bali, Bangkok, Beijing, Bora Bora, DeerValley, Doha, Florence, Houston, Lhasa, Mardavall, Mallorca, Mexico City, MonarchBeach, New York, Osaka, Princeville, Punta Mita, Rome, Saadiyat Island, SanFrancisco, Sanya Sanya Yalong Bay, Shenzhen, Singapore, Tianjin, Washington D.C.NOWUNPRECEDENTEDGLOBAL GROWTHSOURCE: STARWOOD INTERNALPIPELINE REPORTING AS OF 12/31/12GLOBALGROWTH83
  • 84. THE LUXURY COLLECTION85 Unique and Celebrated Hotels 84
  • 85. THEDESTINATIONAUTHORITYINSPIRED BYGLOBAL EXPLORERS» Blending distinctionand global strength» Combining locally relevantproperties with the strengthof Starwood’s systems andhigh-end focus» Over 80 unique andcelebrated hotels in 29countries» Added 6,800 rooms since200785
  • 86. THE LAND ROVER EXPERIENCE DRIVING SCHOOL,THE EQUINOX GOLF RESORT & SPA, VERMONT, USAFALCONRY, AL MAHA DESERT RESORT & SPA, DUBAI, UAEEXPLORE ANDEXPERIENCE» Market-driven, locally relevantexperiences» The Luxury Collection Concierge» The Cocktail Collection» Global Explorers, BrandAdvocates, Travel Provocateurs» Destination Guidesby Assouline» Journeys by The Luxury Collection86
  • 87. 2013 – 2015Cusco, Dalian, Dubai,Hangzhou, Koh Samui,Nanjing, Nanning, SanAntonio, Seminyak,Suzhou, Xiamen 57 HOTELS18% NORTH AMERICANOPERATING & PIPELINE105 HOTELS16% NORTH AMERICAN2007WITH 85 HOTELS IN 29 COUNTRIES, LUXURY COLLECTION MAINTAINSEXCLUSIVITY WITH INCREASING GLOBAL PRESENCENOWGLOBALGROWTHTHE LUXURYCOLLECTIONMAINTAINSEXCLUSIVITY WITHINCREASING GLOBALPRESENCESOURCE: STARWOOD INTERNALPIPELINE REPORTING AS OF 12/31/1287
  • 88. W HOTELSA Global Brand No One Comes Closeto Replicating88
  • 89. INSIDERACCESSTO A WORLDOF WOWINSPIRED BY TRENDSETTERS» Category innovatorborn in NYC andtransformed into aglobal designpowerhouse» Outperforming theglobal competitionfor the last 10+years89
  • 90. CREATINGEXPERIENCESTO SHOWCASEWHAT’S NEW AND NEXTDynamic guest experiencesthrough signature programming» W Happenings (W’s SignatureEvent Series)» Living Room» W Insider» Passion Point Activations –Design, Fashion, Music» Wet Deck» B&F vs. F&B» Bliss Spa, Away Spa» Whatever / Whenever ServiceW HAPPENINGSWET DECKLIVING ROOM90
  • 91. GLOBALGROWTHEXPANDING IN THEWORLD’S HOTTESTCITIES AND MOSTEXCLUSIVE RESORTLOCATIONS2013–2015Abu Dhabi, Beijing, Goa,Guangzhou, Mexico,Milan, Muscat, RivieraMaya, Santa Fe deBogota, Shanghai, TelAviv, Verbier20 HOTELS85% NORTH AMERICANOPERATING & PIPELINE71 HOTELS39% NORTH AMERICAN2007Atlanta, Austin, Bali, Bangkok, Barcelona, Boston, Chicago, Dallas, Doha, Fort,Lauderdale, Hoboken, Hollywood, Hong Kong, Istanbul, Koh, London, Los Angeles,Maldives, Mexico City, Minneapolis, Montreal, New Orleans, New York, Paris, SanDiego, San Francisco, Singapore, Samui, Santiago, Scottsdale, Seattle, Seoul, SiliconValley South Beach, St. Petersburg, Taipei, Vieques, Washington, D.C.NOWSOURCE: STARWOOD INTERNALPIPELINE REPORTING AS OF 12/31/1291
  • 92. LE MERIDIENThe Power of Starwood Transforms a Brand92
  • 93. A NEWPERSPECTIVEINSPIRED BY CREATIVE MINDS» Over seven years withStarwood has led to thebrand’s best portfolio ever» Reinvented Le Méridien,turning a disparate collectionof hotels into a strong andcompelling brand» $2.5B invested in new buildsand renovations sinceStarwood took over thebrand in 2005» Opened 30 new hotels» 50%+ renovated» 50 hotels removed fromthe system93
  • 94. COFFEE CULTURE LE MERIDIEN HUBHIGH-IMPACT ARRIVAL ARTWORK UNLOCK ARTCREATING ANENVIRONMENTTHAT STIMULATESCURIOSITY AND DIALOGUE» Built brand positioning &delivery around the arts &culture:» Curated art experiences» Le Méridien Hublobby concept» Coffee culture» Art partnerships» Targeting over 150 millionaffluent, well-traveledpeople worldwide, includingartists, musicians, mediamanagers, consultants andmore94
  • 95. EUROPENORTHAMERICAAFRICA &MIDDLE EASTASIA PACIFIC11 Hotels4 Pipeline28 Hotels3 Pipeline26 Hotels1 Pipeline29 Hotels17 PipelineLATINAMERICA2 HotelsGLOBALGROWTHAN INTERNATIONALPORTFOLIO OF ~ 100HOTELS, WITHGLOBALDEVELOPMENTOPPORTUNITYSOURCE: STARWOOD INTERNALPIPELINE REPORTING AS OF 12/31/1295
  • 96. WESTINCategory Killer in North America Growing Globally96
  • 97. WESTIN.FOR ABETTER YOUINSPIRED BY THE ACHIEVER» One of theindustry’s mostdistinctivelypositioned andinnovative globalbrands, whichperenniallyoutperforms thecompetition97
  • 98. SLEEP WELLHeavenly BedEAT WELLSuperFoodsRXMOVE WELLWestinWORKOUTGear LendingFEEL WELLGuestroomDesignSensoryWelcomeHeavenlyBathBreatheWORK WELLClutter-freeMeetingsPerformanceMeeting ChairPLAY WELLWestin KidsClubHeavenly SpaCREATINGEXPERIENCES»Westin providesinnovative programsand instinctiveservices thattransform everyaspect of a guest’sstay into a revitalizingexperience, so theyleave feeling betterthan when they arrived98
  • 99. GLOBALGROWTH» Expect to open 200thhotel this year» 50%+ footprint growthover the last 12 years121 HOTELS16 PIPELINE10 HOTELS1 PIPELINE21 HOTELS4 PIPELINE40 HOTELS25 PIPELINESOURCE: STARWOOD INTERNALPIPELINE REPORTING AS OF 12/31/1299
  • 100. SHERATONGlobal Powerhouse in its Best Shape Ever100
  • 101. THEWORLD’SGATHERINGPLACEINSPIRED BYTHE SOCIAL TRAVELER» Fueling Starwood’sgrowth and marketshare gains101
  • 102. SHERATON CLUBLINK@SHERATONSHERATON FITNESSCREATINGEXPERIENCES» Distinguishing Sheraton globally with distinctiveinitiatives» Sheraton Club» Link@Sheraton experienced with Microsoft» Sheraton Fitness programmed by Core Performance» Continuing to build momentum with new experiencesand revenue-driving initiatives» Social programming – Sheraton Social Hour» F&B initiatives – Link@Sheraton Café, Color Your Plate102
  • 103. Source: Starwood internal pipeline reporting as of 12/31/12*Global Upscale Hotel Study,Jan. 2011, LrwLEADINGSTARWOOD’SGLOBALGROWTHSTARWOOD’S LARGESTBRAND, WITH LARGESTPIPELINE WITHINSTARWOOD» 90%+ awareness amongupscale hotel guests*» 76 years» 427 hotels» 66 resorts» 69 countries» 1st international hotel brand inChina, India & Middle East» 101 deals in the pipeline» On track to open 500 hotelsby 2015EAME93 HOTELS26 PIPELINENA207 HOTELS6 PIPELINEAP97 HOTELS63 PIPELINELA30 HOTELS6 PIPELINE103
  • 104. FOUR POINTSBY SHERATONA Brand with Global Momentum104
  • 105. COMFORTISN’TCOMPLICATEDINSPIRED BY SELF-SUFFICIENTS» Great Hotels.Great Rates.» What mattersmost.105
  • 106. COFFEE & BREAKFAST BEST BREWSAUTHENTIC SERVICE GUESTROOM / WORK SPACECREATINGEXPERIENCES» Friendly, authenticservice» Stylish guestroomswith comfortable beds» Local craft beer on tap» Productiveworkspaces» Free internet &bottled water» Great coffee» Delicious breakfast106
  • 107. NORTH AMERICALATIN AMERICAEUROPE, AFRICA,AND MIDDLE EASTASIA PACIFIC112 Open26 Pipeline12 Open3 Pipeline29 Open39 Pipeline18 Open21 PipelineWITH 171HOTELS OPENAND 89 IN THEPIPELINE,FOUR POINTSIS THEDEFINITION OFGLOBALGROWTH» 70% change in the portfoliosince 2005, and $1B investedin renovations, conversionsand new hotels» The portfolio has increasedby more than 40% in the pastfive years» Conversion-friendly formatfueling continued rapidgrowth» 55% of rooms outside the U.S.Source: Starwood internal pipeline reporting as of 12/31/12 107
  • 108. ALOFTAs Disruptive in its Category as W,Addressing a Global Need108
  • 109. URBANCOOL INUNEXPECTEDPLACESINSPIRED BY SELF-EXPRESSERS» Redefining thesegment.Innovative designcombined withprograms &services thatreflect travelers’lifestyle» Designed for thenext generation oftravelers109
  • 110. FASTEST EVERLAUNCH OF ANEW BRAND» Aloft hotels: Any town,anywhere.» Fastest brand launchever…17 in 2008, 39 in2009, 46 in 2010…55 in2011, 62 in 2012…126operating + pipeline at end of2012» Launched Globally» Aloft Portland Airport atCascade Station and AloftNashville-Cool Springsnamed to TripAdvisor’s Top10 Trendiest Hotels in theUSA110
  • 111. GLOBALGROWTHWITH 60+ HOTELS IN10 COUNTRIES, ALOFTIS READY FOR ANYTOWN, ANYWHERE» We bring urban cool tounexpected places,with a global appealthat drives globalgrowthNORTH AMERICALATIN AMERICAEUROPE, AFRICA,AND MIDDLE EASTASIA PACIFIC47 Open23 Pipeline2 Open6 Pipeline10 Open21 Pipeline3 Open14 PipelineSource: Starwood internal pipeline reporting as of 12/31/12111
  • 112. ELEMENTGroundbreaking Approach Gaining Momentum112
  • 113. SPACETO LIVEYOUR LIFEINSPIRED BY HEALTHY ACTIVES» Natural light.Open spaces.Healthy options.» Outdoor-inspired, vibrantliving and smart, freshthinking» Green withoutcompromise. Nocompromise in comfort,quality, convenience orprice113
  • 114. ELEMENT ARUNDEL MILLS, HANOVER, MARYLAND, USAEXCEEDINGOURCUSTOMERSDEMANDS» Guest Loyalty Score at 8.55 for2012, one of the highest ratingsof Starwood brands» 81% of guests are much more orsomewhat more positivelyinfluenced by Element’s greeninitiatives versus the competition» First major hotel brand to showits commitment to theenvironment by mandating thatevery hotel pursue LEEDcertification114
  • 115. ELEMENT HOUSTON, VINTAGE PARK, TEXAS, USAELEMENT’SFOOTPRINTTODAYLexington, MALas Vegas Summerlin, NVHouston Vintage Park, TXArundel Mills, MDDenver Park Meadows, CODallas Ft. Worth Airport North, TXEwing Princeton, NJNew York Times Square West, NYOmaha Midtown Crossing, NEMiami International Airport, FLTOMORROWVaughan Southwest, ON, 2013Harrison, NJ, 2013Frankfurt, Germany, 2014Vancouver Metrotown, BC, 2014Miami Doral, 2015Flushing, 2015Muscat, 2016115
  • 116. THE POWER OF STARWOODOPERATIONSREVENUEMANAGEMENTSALESCENTRALMARKETINGDELIVERYSPGBRAND / FIELDMARKETING& PARTNERSHIPSINDIVIDUAL SPIRIT, COLLECTIVE STRENGTHThe Individual Spirit of our Brands Set them ApartOur Systems, Infrastructure and Global Reach Make them Unstoppable116
  • 117. STARWOOD DRIVES RESULTSStarwood Centrally influences 71% of Room NightsSTARWOODINFLUENCEDPROPERTYDIRECTGLOBALDISTRIBUTIONSERVICES (GDS)DIGITALCHANNELSCUSTOMER CONTACTCENTERS (CCC)22%10%25%13%23%- Industry leading loyalty program- 50% occupancy share - elitebenefits drive incremental staysand stretch for status- Global sales team directly drivesover $5B in annual revenue- Suite of processes, programsmanagement, tools andresourcesSPG- Distinctive lifestyle hotel brands- Best in class field marketingprograms- Comprehensive digital marketingplatformMARKETINGSALESSOURCE: STARWOOD INTERNAL REPORTS YEAR END 2012* All owned, managed, and franchise hotels of all Starwood brands whether franchised or not. For information regarding a specific franchised brand, see the Franchise Disclosure Document for that Brand.STARWOOD INFLUENCE: Starwood influences roomnights that are delivered through central channels (centralized call centers, MARS, internal web, external web, GDS), the Starwood Sales Organization (SSO), TeamHot, and/or SPG. The first-timestays of SPG members who are enrolled by the property are not counted in the Starwood influenced roomnights, unless the roomnights can also be attributed to Starwood central channels, SSO, and/or TeamHot.See end of presentation for Starwood Influence Calculation Assumptions.117
  • 118. KELLY – SPG PLATINUM MEMBERSTARWOODPREFERRED GUEST118
  • 119. SPG – THEBEST LOYALTYPROGRAM INTHE BUSINESS» 54% growth in memberssince 2007» SPG Share of Occupancyis greater than 50%» Richest elite tier benefits»Innovative programmingstrengthens member loyaltyAWARD-WINNINGHOTELCOLLECTIONSPG AMEX» More luxuryand upscalehotels thanother programs» 50+ Gold Listawards» 70 Travel +Leisure awardwinners» Multiple “besttravel/affinitycard” awardsUNIQUE REDEMPTIONOPTIONS» SPG Flights:Hundreds ofairlines, noblackouts» SPG Moments:Once in alifetimeexperiencesthat membersbid on» SPG Cash +PointsRICH PROMOTIONS» Campaignsdesigned toshift share anddrivetransactionvolume» iPhone App:First hotelloyalty programto offer» Social Media:Presence onTwitter,Facebook, etc.CUTTING EDGECOMMUNICATIONSDifferentiation Builds Customer Loyalty119
  • 120. SPG MOMENTSClinics with professional athletesThe Fray Exclusive Member AfterParty @ The W NYPremium concert tickets withLiveNationVIP tickets and exclusive meetand greets120
  • 121. SPG GROWTH – MEMBERS NOW FILL 50% OFROOMS40%45%50%2008 2010 2012SPG Share of Occupancy121
  • 122. GLOBAL GROWTH LOCKING IN LOYALTY AHEAD OFCHANGING TRAVEL PATTERNS»54% growth in memberssince 2007»47% of SPG membersare from outside the U.S.»Increased Chinesemember base 64% in2012»Consumers gravitatetoward the brands theyknow andtrust – our globalpresence isa major advantage122
  • 123. SPG MEMBERSARE VALUABLE» ADR Premium $38 (25%)» Incidental F&B spend of$11 (34%)» Platinum SPG members are26x as profitable as non-members» Ambassador SPG membersare 44x as profitable asnon-members» Enrolled members are 3xmore likely to return to ourhotels the following year» Members are more resilientin a downturnSource: SPG internal data, Dec 20123.2%15.8%-9.3%6.2%-20%-10%0%10%20%2009 2010SPG Nights Non-SPG NightsRESILIENCE DURING THE DOWNTURN123
  • 124. BRAND/ FIELD MARKETING& PARTNERSHIPS124
  • 125. FIELD MARKETING:STARWOOD’SINTERNALMARKETINGAGENCY» Starwood’s internal marketing agencyprovides localized support dedicatedto individual hotel business needs» Mobilizes internal and externalmarketing channels against short-term need periods» Currently, 94% of the Starwoodhotels in North America participate inthis opt in program» Delivers on average $25 for every $1spent on investment for participatinghotels125
  • 126. THE POWER OF GLOBAL PARTNERSLIFESTYLE &ENTERTAINMENTTRAVEL SPORTS & FITNESSFINANCIAL PARTNERS FOOD & BEVERAGE RETAIL126
  • 127. CENTRAL MARKETINGDELIVERY127
  • 128. ROBUSTBRANDEDWEBSITES» Fifteen deep interactivewebsites in ninelanguages bring brandsand hotels to life» Advanced reservationcapability» Intelligent merchandisingto maximize awarenessand increase conversion» Industry-leading customerservice128
  • 129. SOCIAL MEDIAFOSTERSRELATIONSHIPSWITH GUESTS» Over 3.7M fans across leadingsocial platforms around the world» Industry-leading presence withFacebook pages for every brandand hotel, over 1,100 in all» Deep integration with Foursquareand Jeipang» Presence on Twitter and Weibo» Ratings & Reviews meets keyguest need and improvesconversion» Global social monitoring 24/7129
  • 130. MOBILE ISFASTEST-GROWINGPLATFORM» Acclaimed iOS App» Integrated Booking capability» Robust hotel and resortcontent» Personalized support» State-aware functionality» Mobile web platform deliversbranded experience andsupports reservationson all devices130
  • 131. CUSTOMERCONTACTCENTERS LEADWITH INNOVATIVESOLUTIONS» Flexible platforms available 24/7 in24 languages to drive revenue andguest satisfaction» Voice, chat, e-mail, social, Facetimevideo and other emerging platforms» Global presence supportsobjectives across distribution,loyalty, sales, revenuemanagement and more131
  • 132. STARWOOD SALESORGANIZATION132
  • 133. 70% OF STARWOOD’SROOM REVENUECOMES FROM B2BCHANNELS» More than our fair share of high-value/high-volume customers’ business acrossall corporate and leisure segments» Structured the way our clients buy withgreater scale of coverage anddeeper reach» Established organization in mature andgrowth markets, set up to capitalize onnew travel landscape and globalization –revenue up 12% YOY» Innovative programming focused ondriving new business and strengtheningcustomer loyalty133
  • 134. SELLING THE WAYOUR CUSTOMERSBUY, LEADING TOINCREASEDSHARE» 5,000+ sellers deployedagainst customers’ teams andbuying patterns» Global» Divisional» Cluster (metro-market)» Property» Global reach with localexpertise allowing forpersonal solutions, increasedcustomer loyalty, andincremental growth» Seamless and flexibleexperience at every point inthe selling process134
  • 135. GROWINGWITH OURCUSTOMERSAND PORTFOLIO» Adding resources inkey markets, includingBRIC, Eastern Europe,South Africa and more» Driving businessacross borders:» Over 50% of businessfrom our largestmultinational customersoccurs outside theirhome regions135
  • 136. REVENUE MANAGEMENT ANDOPERATIONS136
  • 137. ANALYTICS TRAINING AND COMMUNICATIONTOOLS AND PRODUCTS GLOBAL TECHNOLOGY INITIATIVEREVENUEMANAGEMENT» Multi-millioninvestment in cutting-edge revenuemanagementtechnology» Implementation ofeffective pricing andinventory strategies» Corporate, divisional,regional and area-based RM expertswork directly with thehotels» Tools and detailedanalytics, includingmarket share analysis137
  • 138. NEW BUILDS AND TRANSITIONS TRANING AND SERVICE CULTURELEAN HOTEL OPERATIONS ARCHITECTURE AND ENGINEERINGClosetBedBedBath-roomTVDeskCartHallwayCoffee/GlassOPERATIONALEXCELLENCE» Architecture andengineering support» Focus on strongopenings withoperational planning,support and supervision» Lean Operations» Centralized staffing,performancemanagement andbenefits administration» Tools, technology,strategy and detailedanalytics / reporting138
  • 139. BRANDED CONCEPTS & PROGRAMS TALENT DEVELOPMENTREVENUE GROWTH COST CONTAINMENTFOOD &BEVERAGE» $4.5 billion in annualrevenue (over 30% of totalhotel revenue) atcompany-operated hotels» 3,500 restaurants andbars systemwide» Enhanced procurement,optimized pricing andinnovative formats andpartnerships» Large potential source ofincremental revenue andprofits for our properties» Dedicated F&B team &support structure for hotels139
  • 140. UNLOCKING POTENTIAL IN OUR COMMUNITIES [DIVISIONAL INSERT]ENVIRONMENTAL COMMITMENT – 30/20 by 20 DIFFERENTIATORS WITH IMPACTSUSTAINABILITY& GLOBALCITIZENSHIP» 30% energy reductiontarget and 20% waterreduction target by 2020» Deliver programs andtools to manage energyand water consumption» Guidance, programmingand coordination ofcommunity involvement /philanthropic work(UNICEF, ConservationInternational)140
  • 141. STARWOOD STRATEGY:INDIVIDUAL SPIRIT,COLLECTIVE STRENGTH 141
  • 142. ©2013 STARWOOD HOTELS & RESORTS WORLDWIDE, INC. | Proprietary & ConfidentialTHE STARWOODINVESTMENT PROPOSITIONVASANT PRABHU // VICE CHAIRMAN AND CHIEF FINANCIAL OFFICER142
  • 143. The Starwood Transformation17%Owning Hotels Owning RelationshipsSTARWOOD 2000Fees62%80%FeesFeesOwned/SVO/OtherTRANSFORMING EVENTS» Sold 122 Owned hotels since 2000 for $8.3 billion» Transforming transaction: Sale of 33 hotels (16k rooms) to Host in 2006 for $4.1 billion; distribution of $2.8 billionto shareholdersSTARWOOD 2012 2016 TARGETNote: Percentages represent Earnings before selling, general and administrative expenses and exclude earnings from Bal HarbourFee earnings represents Management fees, Franchise fee and Other IncomeOwned/SVO/OtherOwned/SVO/Other143
  • 144. The Starwood Transformation37%63%U.S Centric Global EnterpriseSTARWOOD 2000Non U.S. 56%44% 80%20%TRANSFORMING EVENTS» Added 492 net Managed and Franchised hotels (139k rooms) since 2000, 63% (88k rooms) outside the U.S.» Transforming transaction: Acquisition of Le Méridien, 122 hotels (32k rooms), 95% non-U.S., ~$50M fees for $250MSTARWOOD 2012 TARGETNote: Percentages represent hotel fee business; pro forma for implied fee on owned hotel gross operating revenueU.S.Non U.S.U.S. Non U.S.U.S.144
  • 145. The Starwood TransformationPrice Point Segmentation Lifestyle Segmentation» Uncompromising» Address» Bespoke» Flirty» Insider» Escape» Culture» Indigenous» Experience» Warm» Comforting» Connections» Personal» Instinctive» Renewal» Chic» Cultured» Discovery» Honest» Uncomplicated» Comfort» Sassy» Refreshing» Oasis» Smart» Renewing» HavenStarwood Preferred GuestTransformation2012Launch of W1998Westin “Heavenly” Launch1999Sheraton Revitalization2007Launch of Aloft and Element2008Global Expansionof W2009Crossover Rewards2013TRACK RECORD OF INNOVATION145
  • 146. ResultsThe Starwood Transformation»Higher Growth Trajectory»Lower Cyclicality»Higher Margins»Higher Capital Efficiency»Significant Cash GenerationSuperior Shareholder Value Creation146
  • 147. The Starwood TransformationS&P98%MAR164%HOT256%10-Year Total Shareholder ReturnSuperior Shareholder Value CreationSource: Bloomberg. Represents 10-year total shareholder returns from 31-Dec-02 through 31-Dec-12 with monthly returns and reinvestment in security 147
  • 148. The Starwood InvestmentProposition» Leading Global Hotel Company in High Growth Markets» Best Global High End Lodging Brands» High Quality Global Pipeline» High Value Global Owned Hotel Portfolio» Unmatched Global Platform» Extraordinary Cash Generation PotentialLE ROYAL MERIDIEN ABU DHABISHERATON ABU DHABI HOTEL & RESORT148
  • 149. The Most Global Hotel CompanyAs of 31-Dec-121,134 Properties and 335,415 Rooms in Nearly 100 CountriesLEADING HOTEL COMPANY IN HIGH GROWTH MARKETSU.S.47%StarwoodU.S.78%HiltonU.S.69%HyattU.S.78%Marriott(Rooms)Greater China Asia Europe Africa / Middle East Latin America / Canada 149
  • 150. Upper-Upscale,75%Geographically Well Balanced High End Hotel PlatformAs of 31-Dec-12U.S.44%Fees by Brand Fees by RegionLEADING HOTEL COMPANY IN HIGH GROWTH MARKETSUpper Upscale: Westin, Sheraton, Le MéridienLuxury: W Hotels, St. Regis, Luxury CollectionSelect Serve: Aloft, Element, Four PointsGreater China Asia EuropeAfrica / Middle East Latin America / Canada150
  • 151. Leadership in High Growth Markets36 20 9 9HOT MAR HLT H31 18 18 15HOT MAR HLT HGREATER CHINA21 11 165HOT MAR HLT HMIDDLE EAST / AFRICAASIA (EX GREATER CHINA)13 96 3HOT MAR HLT HLATIN AMERICARooms(000s)Sources: Smith Travel Research as of December 2012, company data41102104155HMARHLTHOTNon-U.S. Operating Luxury / Upper Upscale Rooms (in 000s)LEADING HOTEL COMPANY IN HIGH GROWTH MARKETS151
  • 152. The World is Changing in our Favor2011–2030CAGR5%3%5%3%EuropeAsia PacificAmericasAfrica MiddleEast2004006008001,0001,2001,4001,6001,8001990 1995 2000 2005 2010 2015 2020 2025 2030NumberofTouristArrivals(inmillions)TOURIST ARRIVALS BY ORIGIN» Our global footprint positionsus to take advantage ofchanging global travelpatterns» 3 billion people entering theglobal economy» Regional travel patternsare evolving» Enormous outbound travelopportunity from GrowthMarkets» Rise of the “Mega Traveler”Source: World Tourism Organization UNWTO Tourism Highlights 2012 Edition; UNWTO “Tourism towards 2030”LEADING HOTEL COMPANY IN HIGH GROWTH MARKETS152
  • 153. Americas Division» Joined Starwood throughVistana Resorts in 1989» Co-President of AmericasSergio Rivera Osvaldo Librizzi» Joined Starwood in 1975 atthe Sheraton Buenos Aires» Co-President of AmericasLEADING HOTEL COMPANY IN HIGH GROWTH MARKETSCurrent Pipeline implies growth of +10%St. RegisLuxuryCollectionW Le Méridien Westin SheratonFour Pointsby SheratonAloft Element OtherTotalOperatingUnited StatesHotels 10 13 26 8 102 186 87 45 10 3 490Rooms 2,294 3,912 8,245 2,113 44,538 69,113 13,814 6,607 1,641 561 152,838Latin America & CanadaHotels 4 10 4 5 29 51 37 4 - - 144Rooms 558 719 742 628 10,087 17,621 5,682 559 - - 36,596As of 31-Dec-12 153
  • 154. Asia Pacific DivisionStephen Ho» Joined Starwood at SheratonBrunei in 1981» President of Asia PacificLEADING HOTEL COMPANY IN HIGH GROWTH MARKETSCurrent Pipeline implies growth of +78%Qian JinSt. RegisLuxuryCollectionW Le Méridien Westin SheratonFour Pointsby SheratonAloft Element OtherTotalOperatingChinaHotels 5 4 1 7 15 55 17 5 - - 109Rooms 1,380 811 392 2,535 5,341 22,715 5,293 1,023 - - 39,490AsiaHotels 4 17 7 22 25 42 12 5 - - 134Rooms 812 4,270 1,520 5,487 7,788 14,634 2,958 860 - - 38,329» Joined Starwood at SheratonShanghai in 1986» President of Greater ChinaAs of 31-Dec-12 154
  • 155. Europe, Africa and the Middle East (EAME)» Joined Starwood atSheraton Brussels in 1982» President of EAME sinceGuido de Wilde Hassan Ahdab» Joined Le Méridien in 1977» Vice-President, RegionalDirector of Operations,Africa & Indian Ocean» Joined Sheraton in 1983in Belgium and relocatedto Bahrain in 1984» SVP, Regional Director –Middle EastLEADING HOTEL COMPANY IN HIGH GROWTH MARKETSCurrent Pipeline implies growth of +36%Roeland VosSt. RegisLuxuryCollectionW Le Méridien Westin SheratonFour Pointsby SheratonAloft Element OtherTotalOperatingEuropeHotels 4 36 5 26 18 61 11 2 - 1 164Rooms 484 5,270 1,029 7,630 5,923 16,913 1,848 402 - 165 39,664Africa & Middle EastHotels 3 5 1 28 3 32 7 1 - - 80Rooms 885 1,384 441 6,954 949 8,788 1,329 408 - - 21,138As of 31-Dec-12 155
  • 156. AL MAHA DESERT RESORT & SPA, DUBAIALOFT ABU DHABIThe Starwood InvestmentProposition» Leading Global Hotel Company in High Growth Markets» Best Global High End Lodging Brands» High Quality Global Pipeline» High Value Global Owned Hotel Portfolio» Unmatched Global Platform» Extraordinary Cash Generation Potential156
  • 157. Best Global High End Lodging BrandsSource: Smith Travel Research, Company reports. Third party logos displayed are the trademarks of their respective third party owners. Such logos are referenced for informational purposes only andnot intended to indicate any affiliation, association, or endorsement.BEST GLOBAL LODGING BRANDS35K59%LuxuryStarwoodUpperUpscale% RoomsOutsideU.S.251K54%Marriott50K52%Hilton18K51%Hyatt29K64%249K31%245K39%74K30%% RoomsOutsideU.S.157
  • 158. Fastest Growing Luxury Brand PortfolioBEST GLOBAL LODGING BRANDSStarwood Luxury Brands» Added 17k net luxury rooms globally since 2007» W, the most successful new brand launch in the hotel industry, now at 44 hotels globally» St. Regis has grown from 1 iconic New York hotel to 30 hotels since 1999» Luxury Collection offers unique experiences in over 80 locations across 30 countries-1020304050602007 2012-1020304050602007 2012HOT Luxury BrandsRooms(000s)-1020304050602007 2012Rooms(000s)Rooms(000s)Four Seasons MAR Luxury BrandsSource: Smith Travel Research, Luxury Hotel Rooms. 2007 MAR pro forma for JW Marriott+ 92%+ 18%+ 32%158
  • 159. Largest Global Portfolio of Upper-Upscale BrandsBEST GLOBAL LODGING BRANDSStarwood Upper-Upscale Brands» 250K Upper-Upscale Rooms globally in89 countries» Sheraton: Leading Global five-star brand,with more rooms outside the U.S. andEurope than any other competitor» Westin: Top North American Upper-Upscale brand expanding rapidly outsidethe U.S.» Le Méridien: With deep roots in Europe,Africa and the Middle East, re-energizedinto a unique and compelling globalbrand since 2007240245250HOT UpperUpscaleHilton UpperUpscaleMAR UpperUpscale2012Rooms(000s)Source: Smith Travel Research, Upper Upscale Hotel Rooms 159
  • 160. Differentiated Select Serve Brands Growing Globally051015202530354045502007 2012Four Points AloftRooms(000s)Starwood Select Serve Brands» Rooms have almost doubled globallysince 2007» Four Points by Sheraton has experienceddramatic non-U.S. growth and alreadyhas 55% of rooms outside the U.S.» Aloft, a highly differentiated select servebrand, has grown to 62 hotels since itslaunch in 2007 with 33% of rooms outsidethe U.S.BEST GLOBAL LODGING BRANDSAs of 31-Dec-12 160
  • 161. LE MÉRIDIEN MINA SEYAHIBEACH RESORT & MARINAGROSVENOR HOUSEThe Starwood InvestmentProposition» Leading Global Hotel Company in High Growth Markets» Best Global High End Lodging Brands» High Quality Global Pipeline» High Value Global Owned Hotel Portfolio» Unmatched Global Platform» Extraordinary Cash Generation Potential161
  • 162. High Quality 100K room (400 hotel) global pipelineSources: Smith Travel Research Pipeline reports: Total Pipeline, company dataHIGH QUALITY GLOBAL PIPELINE AND GROWTH OPPORTUNITY87%76%60%47%StarwoodHyattHiltonMarriottOutside of U.S. (% of Pipeline)67%66%37%36%StarwoodHyattMarriottHiltonUpper Upscale / Lux (% of Pipeline)162
  • 163. Well Positioned to take advantage of Global GrowthSources: IMF 5-Year Nominal GDP Growth, Starwood pipeline data (mix by rooms)25%44%20%16%19%13%19%7%10%6%7%14%0%5%10%15%20%25%30%35%40%45%50%I I I I I I I I I I I IGreater China Asia (excludingGreater China)U.S. Europe Latin America &CanadaAfrica / Middle EastHIGH QUALITY GLOBAL PIPELINE AND GROWTH OPPORTUNITY% of 5-year Global GDP Growth % of Starwood Room Pipeline163
  • 164. Global Growth fueled by all Nine BrandsHIGH QUALITY GLOBAL PIPELINE AND GROWTH OPPORTUNITY05101520253035Sheraton Four Points bySheratonWestin Aloft W Le Meridien St. Regis Luxury Collection ElementPipeline by BrandU.S. Greater China Asia ex China Europe Africa/ Middle East Latin America/ CanadaRooms(000s)As of 31-Dec-12 164
  • 165. 10-year track record of 5% Net Rooms Growth1002003004002004 2005 2006 2007 2008 2009 2010 2011 2012 2013E5% Net Rooms GrowthOperatingRoomsHIGH QUALITY GLOBAL PIPELINE AND GROWTH OPPORTUNITY165
  • 166. FOUR POINTS BY SHERATON SHEIKHZAYED ROAD, DUBAIFOUR POINTS BY SHERATONDOWNTOWN DUBAIThe Starwood InvestmentProposition» Leading Global Hotel Company in High Growth Markets» Best Global High End Lodging Brands» High Quality Global Pipeline» High Value Global Owned Hotel Portfolio» Unmatched Global Platform» Extraordinary Cash Generation Potential166
  • 167. High Value Global Owned Hotel PortfolioHIGH VALUE GLOBAL OWNED PORTFOLIO25 TOP OWNED/LEASED HOTELS(~90% OWNED/LEASED EARNINGS)U.S. / CanadaAsia EuropeLatin America• Sheraton On The Park, Sydney• Sheraton Fiji Resort• Westin Denarau , Fiji• Sheraton Rio• Sheraton Maria Isabel, Mexico• Sheraton Buenos Aires• Sheraton Lima• St. Regis Grand, Rome• Gritti Palace, Venice• Hotel Alfonso XIII, Seville• W Barcelona• W London• Westin Excelsior, Rome• Sheraton Park Lane, London• St. Regis New York• St. Regis San Francisco• St. Regis Bal Harbour• The Phoenician, Arizona• W New Orleans• W NY – Times Square• Westin Maui• Westin SFO• Sheraton Centre Toronto• Sheraton Gateway Toronto• Le Centre Sheraton MontrealBased on Projected 2013 Earnings 167
  • 168. Well DiversifiedGloballyST. REGIS BAL HARBOURWESTIN EXCELSIOR, ROMEBY DIVISIONHIGH VALUE GLOBAL OWNED PORTFOLIOEuropeAsiaU.S.Based on 2012 owned earnings assuming Owned hotel set as of January 31st, 2013Latin America/ Canada168
  • 169. ST. REGIS NEW YORKHOTEL GRITTI PALACE, VENICEBY PROPERTY TYPEHIGH VALUE GLOBAL OWNED PORTFOLIOBased on 2012 owned earnings assuming Owned hotel set as of January 31st, 2013ConventionResortUrbanAirportIn High Barrier toEntry Urban andResort Markets169
  • 170. Unlocking Value from Asset SalesSTARWOOD 3-YEAR OUTLOOK$275k/room = $4.8B$300k/room = $5.2B$325k/room = $5.6B$/Room14x = $4.4B15x = $4.7B16x = $5.0BAdj. Earnings MultipleTo estimate cash proceeds, valuations will need to be adjusted for leases (20% of rooms), capital needs for certain hotels and any cash taxeson gains. Actual proceeds may vary depending on market conditions.HIGH LEVEL VALUATION SCENARIOSOwned Rooms ~14,800Leased Rooms ~2,500Note: Adjusted earnings represents Owned/Leased hotel operating revenue less operating expenses, pro forma for management fee on gross revenue. Value based on average EBITDA 2013-2015. 170
  • 171. Unlocking Value from UJVs and Non-EBITDA Producing AssetsKEY UNCONSOLIDATED JOINT VENTURES(>85% UJV EBITDA)Asia Pacific North AmericaLatin AmericaNon-EBITDA Producing AssetsUJV Rooms ~8,485UJV EBITDA (HOT share) ~$70MHotel Rooms OwnershipSt. Regis Beijing, China 258 32%W Maldives 78 50%Sheraton Hong Kong 782 25%Sheraton Royal Orchid, Bangkok 726 44%Sheraton Imperial Kuala Lumpur 385 49%Sheraton Maldives 156 45%Hotel Rooms OwnershipSt. Regis Punta Mita 120 40%W Mexico City 237 50%Hotel Rooms OwnershipSheraton New Orleans Hotel 1,110 47%Sheraton Seattle Hotel 1,258 22%Westin Savannah 403 49%Westin Bellevue 337 17%Land HoldingsSardinia Atlanta BuckheadMaui, HI Avon, COOrlando, FL Aruba, NASTARWOOD 3-YEAR OUTLOOK171
  • 172. LE MERIDIEN DUBAILE ROYAL MERIDIEN ABU DHABIThe Starwood InvestmentProposition» Leading Global Hotel Company in High Growth Markets» Best Global High End Lodging Brands» High Quality Global Pipeline» High Value Global Owned Hotel Portfolio» Unmatched Global Platform» Extraordinary Cash Generation Potential172
  • 173. Global Infrastructure – the Power of StarwoodINDIVIDUAL SPIRIT, COLLECTIVE STRENGTHOPERATIONSREVENUEMANAGEMENTSALESCentralMarketingDeliverySPG &PARTNERSHIPSBRAND / FIELDMARKETING& PRUNMATCHED GLOBAL PLATFORM173
  • 174. SPG &PARTNERSHIPSBRAND / FIELDMARKETING& PRCENTRALMARKETINGDELIVERYGlobal Infrastructure - CapabilitiesUNMATCHED GLOBAL PLATFORM» Starwood centrally influences 71% of Room Nights» Digital Channels ~25%» Starwood influenced property direct ~23%» Customer Contact Centers ~13%» Global Distribution Services (GDS) ~10%» 54% growth in SPG members globally since 2007» 47% of SPG members come from outside the U.S.» SPG share of occupancy is > 50% at a 25% ADR premium globally» Key partnership across industries – Travel (Delta), Finance (Amex), F&B (Coca-Cola), Entertainment(Live Nation), Sports (U.S. Open), and Retail (Pottery Barn)» Starwood’s internal marketing agency, Field Marketing, provides localized support to individual hotelbusiness needs» Currently 94% of Starwood hotels in North America opt into program» Delivers on average $25 for every $1 spent on investment for participating hotels174
  • 175. Global Infrastructure - CapabilitiesSALESREVENUEMANAGEMENTOPERATIONSUNMATCHED GLOBAL PLATFORM» Starwood B2B Sales drives ~70% of Revenue» >5,000 sellers deployed against customers’ teams and buying patterns» Adding resources in key markets, including BRIC, Eastern Europe, and South Africa» Multi-million dollar investment in cutting-edge revenue management technology» Implementation of effective pricing and inventory strategies» Corporate, divisional, regional and area-based RM experts work with hotels» Best-in-class hotel operations teams» 3,500 restaurants and bars Systemwide» Sustainability strategy which targets 30% energy reduction and 20% water reduction by 2020175
  • 176. Best Global TeamMexicoCityBuenosAiresTorontoHonoluluSydneyLondonMadridMilanTokyoBangkokSingaporeNewDelhiViennaBrusselsDubaiSeattleChicagoAtlanta ShanghaiKualaLumpurMiamiNew York3 Divisions6 RegionsCross-functional teams at Divisions/RegionsGlobal Structure% Born outside U.S: 39%% Working outside home country: 37%Avg. Starwood Tenure:16 yearsLeadership 100 DemographicsUNMATCHED GLOBAL PLATFORMOrlandoScottsdale176
  • 177. THE WESTIN ABU DHABIGOLF RESORT & SPASHERATON DUBAI CREEKHOTEL & TOWERSThe Starwood InvestmentProposition» Leading Global Hotel Company in High Growth Markets» Best Global High End Lodging Brands» High Quality Global Pipeline» High Value Global Owned Hotel Portfolio» Unmatched Global Platform» Extraordinary Cash Generation Potential177
  • 178. Cash From Hotel OperationsEXTRAORDINARY CASH GENERATION POTENTIALNote: Excludes cash from Timeshare and Bal Harbour$815$531$596$694$7382008 2009 2010 2011 2012$3.4B of Cash from Hotel Operations since 2008 Invested Capital of $1.8B in Hotel Business since 2008$428$236 $265$462$4172008 2009 2010 2011 2012Hotel Earnings – Includes Owned, Fees and OtherEarnings less SG&A and Gain AmortizationCapital – Includes Maintenance and Development Capital178
  • 179. Cash from Timeshare Operations & Bal HarbourEXTRAORDINARY CASH GENERATION POTENTIAL($150)$275$182 $150 $1772008 2009 2010 2011 2012($133)($68)($127)($29)$4612008 2009 2010 2011 2012Timeshare – Net Cash Bal Harbour – Net CashNet Cash Flow – Includes all timeshare cash receipts andexpenses, securitization proceeds, capital and SPG point costNet Cash Flow – Includes cash from closings, construction capital (bothresidential and hotel), S&M expenses and developer liability costs179
  • 180. Cash from Asset Sales$238M$148M$312M$548M$1.25B2009 2010 2011 2012 Total 2009-12# of TransactionsPrice / RoomAEBITDA MultipleMultiple w/ CAPEX7$162K14x24x2$298K28x28x3$177K13x14x5$317K*17x19x17$228K16x19x»$1.25B of Cash Proceeds (gross) generated since 2009 (Avg. Multiple over 16X)»Buyers have invested heavily in hotels (St. Regis Aspen, Westin Gaslamp, WLakeshore, Le Méridien Perimeter)EXTRAORDINARY CASH GENERATION POTENTIAL* Excludes Poconos 180
  • 181. $913$771Extraordinary Cash GenerationNet Debt Reduction of $2.4B since 2008 Returned $1.7B to Shareholders since 2008Share BuybacksDividendsEXTRAORDINARY CASH GENERATION POTENTIAL$3,248$3,523$2,826$2,051$1,511$8111/120081/120091/120101/120111/120121/12013Note: Net debt consists of Long-term debt and short term debt, net of cash equivalents and restricted cash 181
  • 182. LE MÉRIDIEN MINA SEYAHIBEACH RESORT & MARINATHE WESTIN DUBAI MINA SEYAHIBEACH RESORT & MARINAThe Starwood InvestmentProposition» Leading Global Hotel Company in High Growth Markets» Best Global High End Lodging Brands» High Quality Global Pipeline» High Value Global Owned Hotel Portfolio» Unmatched Global Platform» Extraordinary Cash Generation Potential182
  • 183. STARWOOD 3 YEAROUTLOOKGROSVENOR HOUSE, DUBAI183
  • 184. Source: International Monetary Fund, UNWTO World Tourism OrganizationSecular Demand Gains in Growth MarketsSTARWOOD 3-YEAR OUTLOOKGLOBAL GDP2012 2020GLOBAL TRAVEL2000 2012 20202000GrowthMarketsMatureMarketsGrowthMarketsMatureMarketsGrowthMarketsMatureMarketsGrowthMarketsMatureMarketsGrowthMarketsMatureMarketsGrowthMarketsMatureMarkets184
  • 185. Best Growth Markets Platform in LodgingSTARWOOD 3-YEAR OUTLOOKFEES PIPELINEROOMSMatureGrowth(32%)MatureGrowth(35%)MatureGrowth(80%)Greater China India / Emerging Asia Emerging Europe / AME Latin AmericaAs of 31-Dec-12 185
  • 186. Secular Growth with Cycles in Mature MarketsSources: US data; PWC (lodging 1967-1986); STR (lodging 1987-2012; U.S. Bureau of Labor Statistics U.S. Price Inflation (CPI-U, Annual Average)8 Years8 Years 10 Years 10 Years$0$10$20$30$40$50$60$70717273747576777879808182838485868788899091929394959697989900010203040506070809101112Nominal RevPARReal RevPAR(2012 dollars)STARWOOD 3-YEAR OUTLOOK186
  • 187. 2.7%3.2%2.0%0.6% 0.5%2008 2009 2010 2011 2012 2013 EU.S. SUPPLY GROWTH (%)BY YEARLow Supply Growth Supports RecoverySource: Smith Travel Research, PWCEurope Supply Growth over next 3 Years = <1%STARWOOD 3-YEAR OUTLOOK21%25%21%13%1970s 1980s 1990s 2000sU.S. SUPPLY GROWTH (%)BY DECADE<1%187
  • 188. 65%67% 67% 67%64%58%62%64%66%2004 2005 2006 2007 2008 2009 2010 2011 2012$133$141$152$162$165$147 $147$154$1592004 2005 2006 2007 2008 2009 2010 2011 2012$176 (11%)2008 Peak ADR in “Real” termsRates will drive Next Leg of RevPAR GrowthSTARWOOD 3-YEAR OUTLOOKSource: STR. U.S. Luxury, Upper-Upscale and Upper Tier IndependentsOccupancy % ADR ($)U.S. Luxury / Upper Upscale188
  • 189. GrowthWell Balanced Mature Markets BusinessFEES INCENTIVE FEESOWNED/LEASED EARNINGSBASE FEESFranchiseIncentiveBase MgmtGrowthMature(75%)GrowthMature(85%)Note: Earnings represents Owned/Leased hotel operating revenue less operating expensesSTARWOOD 3-YEAR OUTLOOKU.S.37%Asia Europe Canada2012($M’s)% of HotelsPaying Fees$50M 31%$128M 81%MatureGrowthMATUREMature189
  • 190. 5-7% Growth Achievable with Continuing Recovery CycleU.S. REVPAR’75-’79CAGR15%n/a’93-’97CAGR7%8%’03-’07CAGR7%9%’10-’15CAGR~6%Total U.S.U.S. Luxury/UUSource: PWC (lodging 1967-2015E)STARWOOD 3-YEAR OUTLOOK$0$10$20$30$40$50$60$70$80$90686970717273747576777879808182838485868788899091929394959697989900010203040506070809101112131415190
  • 191. Indicative Management Contract StructuresU.S. Non-U.S.Base Fee (% GOR) ~3-4% ~2-3%Incentive Fee~10-12% of “Incentive Income,”Often NOI after an Owner priorityreturn that is typically 8-10% ofinvested capital~8-10% of (typically) GOP afterBase Fee; No Owner priority returnTerm~20-40 yearsLimited Owner rights to terminate(e.g. on sale of property) or convertto franchise~20-40 yearsEarly Owner termination right israreExpanding Margins Driving Incentive Fee GrowthSTARWOOD 3-YEAR OUTLOOK» GOP Margins haveexpanded 270 bps since2009 with incentive feegrowth of 46%» ~60% of same storemanaged propertiesworldwide pay incentivefees» ~76% of same storemanaged properties ininternational markets payincentive fees191
  • 192. $280$5402012 2017 Target19%26%2012 2017 TargetEARNINGS ($M)» RevPAR CAGR 6%» ADR CAGR 5%» Margin gains of ~130 bps / year» Global Revenue Management» Lean Operations» Food and BeverageKey AssumptionsCAGR:+14%MARGIN+7 ptsRevPAR$0$10$20$30$40$50$60$70$80Note: Earnings represents Owned/Leased hotel operating revenue less operating expenses for Owned hotel set as of January 31st, 2013.. Excludes $27M in sold and other earnings.“Path to Peak” at Owned / Leased HotelsSTARWOOD 3-YEAR OUTLOOKKey InitiativesCurrent Owned / Leased Hotel Set192
  • 193. $340$350$360$370$380$390$400$410$4202007 2012Worldwide SG&A*050,000100,000150,000200,000250,000300,000350,000400,0002007 2012Systemwide Rooms-11%* 2007 SG&A excludes expenses associated with Bliss spa subsidiary, sold in 2009.Holding the Line on SG&ASTARWOOD 3-YEAR OUTLOOK» In the last 5 years,SG&A per room isdown over 25%» We are addingcosts strategicallyto support thegrowth of ourbusiness in keymarkets» Controlling thegrowth of corporatecosts+21%193
  • 194. Key AssumptionsGlobal Outlook» Normal cyclical recoveryin Mature Markets» Continued rapid growth inGrowth Markets» Modest increase ininterest rates» Constant foreignexchange rates at currentlevelsMacro» No additional hotel salesincluded (adjustments inthe future if/whenhotels sold)» No share repurchasesassumed» Bal Harbour included incash flow (excluded fromEBITDA)» Focus on share gain andcost control in the hotelbusiness» Manage Timesharebusiness for cashgeneration» Sell-out Bal Harbour bythe end of 2013» Continue tight SG&AcontrolOperational FinancialSTARWOOD 3-YEAR OUTLOOK194
  • 195. What Could Disrupt a Normal Cyclical Recovery?Starwood OutlookMACRO-ECONOMIC RISKS» Political backlash to austerity in Southern Europe» Deceleration in China due to global slowdown in demand» Low / no growth in North America due to deficit/debt issuesGEO-POLITICAL RISKS» Syria / Egypt / Iran» Afghanistan / Pakistan» North KoreaSTARWOOD 3-YEAR OUTLOOK195
  • 196. Starwood 3-Year OutlookCAGRs 2012 - 2015Starwood 3-Year OutlookRevPAR Growth = 5 to 7%EBITDA Growth = 10 to 12%EPS Growth = 16 to 20%STARWOOD 3-YEAR OUTLOOK196
  • 197. Owned / Leased Hotels 3-Year OutlookCAGRs 2012 - 2015Starwood 3-Year OutlookRevPAR Growth = 4 to 7%Margin Improvement = +200 to +400 bpsEarnings Growth = 10 to 14%+/-1% RevPAR CAGR =+/-$20-25M Owned/Leased Earnings through 2015Note: Earnings represents Owned/Leased operating revenue less operating expenses.STARWOOD 3-YEAR OUTLOOK197
  • 198. Managed and Franchised Hotels 3-Year OutlookCAGRs 2012 - 2015Starwood 3-Year Outlook+/-1% RevPAR CAGR =+/- $20-25M Management & Franchise Fees through 2015RevPAR Growth = 5 to 7%Net Rooms Growth = 4 to 5%Incentive Fee Growth = 15 to 20%Managed & Franchise Fee Growth= 9 to 12%Note: All growth rates same store except Net Rooms Growth and Total Fee GrowthSTARWOOD 3-YEAR OUTLOOK198
  • 199. Vacation Ownership / Residential 3-Year Outlook(CAGRs 2012 – 2015, unless otherwise noted)Starwood 3-Year OutlookNote: Earnings represents VOI operating revenue less VOI operating expenses.Originated Sales Growth = FlatOperating Income Growth = FlatTimeshare Capital Spend = $150 to $200M(Cumulative’13-15)Timeshare Cash Flow = $450 to $500M(Cumulative ’13-’15)Bal Harbour Net Cash Flow = $100M(2013 Cash Flow per 2/7/2013 Outlook) (sell out in 2013)STARWOOD 3-YEAR OUTLOOK199
  • 200. 3-Year Outlook: Sources of GrowthStarwood 3-Year OutlookNote: EBITDA and EPS before special items2012 2015PRO-FORMA EPS2012 OWNED M&F SVO / NET 2015PRO-FORMA HOTELS FEES RESIDENTIAL SG&A EBITDATax Rate: ~31%$1,043$1,370-$1,450+10%-+14%+9%-+12% flat-3%--5%EBITDA GROWTH(2012 – 2015, $M)EPS GROWTH(2012 – 2015, $M)$2.08$3.25-$3.60CAGR:16% - 20%STARWOOD 3-YEAR OUTLOOK200
  • 201. Significant Cash Generation Potential(all figures cumulative, $ in millions)Starwood 3-Year Outlook~$2B- =+Asset SalesCash available to:» Fund growth» Return to shareholders3YearCashFlowsfrom2012 Ending“Excess” Cash~$300MOwned Hotels$1,050MTo$1,150MFee Business$3,100Mto$3,200MSVO / BalHarbour$550Mto$600M=3YearCashFlowsSG&A Expense($1,200M)To($1,250M)Owned Hoteland IT Capital($1,150M)to($1,200M)Tax and InterestExpense($700M)to($750M)Sources Uses 3 Year Cash FlowBalance Sheet capacity in 2015 (at target 2.5x Gross Debt/AEBITDA) + $1.0B to $1.3B“Capacity” for Growth Investments & Return to Shareholders = $3.0B to $3.3BSTARWOOD 3-YEAR OUTLOOK201
  • 202. Achieving 80/20 Asset Light goal by 2016 = ~$3B in CashNorth America» Improving industry operating fundamentals» Low Supply increases» Foreign and PE equity capital re-emerging» REITs with access to capitalEurope» Significant interest for gateway markets» Interest from Middle East and AsiaLatin America» Mexican GDP accelerating» Global investor interest in BrazilAsia» Australia: hub for cross-border capital» Emergence of REITs in certain marketsTransaction Outlook Disposition AlternativesSTARWOOD 3-YEAR OUTLOOKIndividual Asset SalesPortfolio Sale» Small (< 3 assets)» Large ($750M+)Joint Venture» Private Equity» REIT» Institutional Investor / SWFREIT Spin-Off» HOT sponsored spin-off (public or non-traded REIT)» Contribute all / a portion of assets in exchange for shareand cash (public)202
  • 203. Use of “Capacity” – $3.0B to $3.3B + Cash from Asset SalesStarwood 3-Year Outlook» Support Pipeline Growth– Joint Ventures– Financing– Opportunistic Hotel Acquisitions» Strategic Brand Acquisitions– Expand current footprint– Acquire additional regional or globalscaleFund Growth» Pay Dividends– 2012 Dividend: +150%; 2% yield– Increase payout as EPS grows» Buy Back Stock– Offset Share Dilution– EPS Accretion– Below intrinsic valueReturn Cash to ShareholdersSTARWOOD 3-YEAR OUTLOOK203
  • 204. IN SUMMARYFOUR POINTS BY SHERATON SHEIKH ZAYED ROAD, DUBAI204
  • 205. The Starwood TransformationSummaryOwning Hotels Owning RelationshipsU.S.-Centric Global EnterprisePrice Point Segmentation Lifestyle Segmentation» Higher growth trajectory» Lower cyclicality» Higher margin» Higher capital efficiency» Significant cash generation» Superior shareholder value creationIN SUMMARY205
  • 206. The Starwood Investment PropositionSummary»Leading Global Hotel Company in High Growth Markets»Best Global High End Lodging Brands»High Quality Global Pipeline»High Value Global Owned Hotel Portfolio»Unmatched Global Platform»Extraordinary Cash Generation PotentialIN SUMMARY206
  • 207. Starwood OutlookSummary»Secular demand gains in Growth Markets»Below-trend supply growth in Mature Markets»Sharp rebound in owned hotel profits»Significant cash generation from hotel operations, asset sales and timeshareIN SUMMARY207
  • 208. Starwood 3-Year OutlookSummary»5-7% annual RevPAR growth achievable 2012-2015 with continued cyclical recovery»10-12% annual EBITDA growth & 16-20% annual EPS Growth»$3.0B to $3.3B of operating cash flow and balance sheet capacity»80/20 Asset Light goal by 2016 could generate ~$3B in cash»Significant capacity to fund growth investments and return cash to shareholders overnext three yearsIN SUMMARY208
  • 209. Same Store Owned, Leased and Consolidated Joint Venture Hotels Worldwide 2009 2012RevenueSame store Owned, Leased and Consolidated Joint Venture Hotels 1,386$ 1,252$Hotels sold, closed or without comparable results 198 446Total Owned, Leased and Consolidated Joint Venture Hotels Revenue 1,584$ 1,698$Costs and ExpensesSame store Owned, Leased and Consolidated Joint Venture Hotels 1,136$ 993$Hotels sold, closed or without comparable results 179 398Total Owned, Leased and Consolidated Joint Venture Hotels Costs and Expenses 1,315$ 1,391$December 31,Twelve Months EndedSTARWOOD HOTELS AND RESORTS WORLDWIDE, INC.Non-GAAP to GAAP Reconciliations - Same Store Owned, Leased and Consolidated Joint Venture Hotel Revenue and Expenses(In millions)
  • 210. $ 562 $ (153) $ 409182 - 182128 (128) -234 (55) 179256 (11) 24528 - 281,390 (347) 1,04321 (21) -(179) 179 -(12) 12 -$ 1,220 $ (177) $ 1,043(a)(b)(c)(d)(e)STARWOOD HOTELS AND RESORTS WORLDWIDE, INC.Non-GAAP to GAAP Reconciliations - Pro Forma Data(In millions)Year EndedDecember 31, 2012Income tax (benefit) expense(c)As ReportedPro FormaAs AdjustedReconciliation of Net Income (Loss) to EBITDA and AdjustedEBITDANet income (loss)(a)Interest expenseLoss on early extinguishment of debt, net(b)Pro FormaAdjustmentsUnusual and one-time items not expected to occur in a normalized year.Depreciation(d)AmortizationEBITDA(Gain) loss on asset dispositions and impairments, net(e)Discontinued operations (gain) loss on dispositions(e)Restructuring and other special charges (credits), net(e)Adjusted EBITDAThe reduction in net income reflects the adjustments noted below to normalize the 2012 year. This includes eliminating $157 million ofearnings from Bal Harbour, the reduction of $20 million for the asset sales that occurred in 2012 and the effect of the adjustments below.Represents a decrease in costs as the early extinguishment is an unusual item in 2012.Includes a benefit of $52 million due to reduced EBITDA from the St. Regis Bal Harbour and a $3 million tax benefit from lower operatingincome from hotels sold during 2012.Includes an $11 million benefit from reduced depreciation associated with hotels sold during 2012.
  • 211. Twelve Months EndedUnconsolidated Joint Ventures December 31, 2012Equity Earnings from Unconsolidated Joint Ventures 25$Depreciation and amortization from Unconsolidated Joint Ventures 32Interest Expense from Unconsolidated Joint Ventures 10EBITDA of Unconsolidated Joint Ventures 67$STARWOOD HOTELS AND RESORTS WORLDWIDE, INC.Non-GAAP to GAAP Reconciliations(In millions)
  • 212. STARWOOD HOTELS & RESORTS WORLDWIDE, INC.Non-GAAP to GAAP Reconciliations – Future Performance(In millions, except per share data)Low CaseYear EndedDecember 31, 2015Net income $ 640Interest expense 120Income tax expense 288Depreciation and amortization 322EBITDA 1,370(Gain) loss on asset dispositions and impairments, net -Discontinued operations (gain) loss on dispositions -Adjusted EBITDA $ 1,370Year EndedDecember 31, 2015Income from continuing operations before special items $ 640EPS before special items $ 3.25Special ItemsGain (loss) on asset dispositions and impairments, net -Total special items – pre-tax -Income tax benefit associated with special items -Total special items – after-tax -Income from continuing operations $ 640EPS including special items $ 3.25High CaseYear EndedDecember 31, 2015Net income $ 709Interest expense 110Income tax expense 319Depreciation and amortization 312EBITDA 1,450(Gain) loss on asset dispositions and impairments, net -Discontinued operations (gain) loss on dispositions -Adjusted EBITDA $ 1,450Year EndedDecember 31, 2015Income from continuing operations before special items $ 709EPS before special items $ 3.60Special ItemsGain (loss) on asset dispositions and impairments, net -Total special items – pre-tax -Income tax benefit associated with special items -Total special items – after-tax -Income from continuing operations $ 709EPS including special items $ 3.60

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