Starwood has a first-mover advantage in the Middle East region due to its five decades of experience operating hotels. It currently has 79 hotels totaling over 22,000 rooms across 13 countries in the region. The Middle East is experiencing strong economic growth and increasing tourism as populations grow and diversify. Starwood is well-positioned to capitalize on the region's dynamics with its diverse portfolio of brands and pipeline hotels in high-growth markets like the UAE and KSA.
A complete valuation of Starwood hotel with all the methods of valuations.
1. Corporate Governance
2. Financial Analysis
3. Company Valuation
4. Capital Budgeting
5. Portfolio Assignment and assessment
6. Valuation of long term securities
7. Leasing
8. Derivatives and Options strategy
9. Capital Structure
10. Bottom up and dividend policy
Starwood Hotels & Resorts Worldwide, Inc. reported fourth quarter 2014 financial results. Revenue and profits increased compared to the same period last year. The company owns, operates, franchises and manages hotels and resorts under nine brands worldwide. As of March 2015, Starwood had approximately 1,200 properties in 100 countries. Looking ahead, the company expects continued revenue growth in 2015 and announced plans to spin off its vacation ownership business into a separate publicly traded company.
- Starwood Hotels & Resorts had an exceptional year in 2006, with worldwide system-wide RevPAR growth of 9.9% and other strong financial results.
- The CEO, Steven Heyer, resigned in March 2007 and Bruce Duncan was appointed interim CEO due to issues with Heyer's management style.
- Starwood is well positioned for future growth with a strong market position, exceptional partner relationships, and clear strategy for continuing to build shareholder value through growing fee revenues, strengthening its industry-leading pipeline and brand initiatives.
The document provides an investment analysis on Starwood Hotels & Resorts (NYSE: HOT) conducted by Nick Ennis, Bill Geist, Allen Miller, Mike Mongiardini, Tom Walker & Ryan Williams. Key points include:
- The analysts conducted a discounted cash flow valuation that derived an equity value of $15.1 billion for HOT, implying a slight downside to the current share price.
- Growth in the lodging industry, particularly in China and North America, is expected to support increased revenues and profits for HOT.
- HOT's transition to an asset-light business model is expected to improve returns and reduce debt, supporting a higher valuation multiple.
The document discusses asset allocation trends among financial advisors in the Middle East based on a survey. It finds that exposure to global developed market equities and structured notes are expected to increase the most over the next year. Emerging markets and GCC stocks are also popular but hedge funds remain less so. Dubai is establishing itself as a leading financial center in the region, having attracted many international asset managers to set up operations there. The developing regulatory environment and growth of the UAE economy are contributing to Dubai's rise.
One of the harder decisions to make before entering into an acquisition is assessing the value (vs price) of an acquirer's shares when common shares are the primary consideration paid to sellers. Obviously this is true when the acquirer is public, but also it is an issue that should be vetted when the acquirer is an SEC registrant.
Jay T Anderson Vail Resorts - Final Draft Jay T Anderson
This equity research report analyzes Vail Resorts Inc., which operates 11 mountain resorts in the US and Australia. The report discusses the ski resort industry, Vail's business model in mountain operations, lodging, and real estate. It analyzes Vail's growth strategy, competitive advantages, financial performance, and valuation. The analyst values Vail at $145.88 per share, reflecting 12.4% upside, and recommends the fund buy the stock due to Vail's market leading position and focus on investments to enhance the guest experience.
This document provides an overview of an investment opportunity to acquire a 37.55% equity stake in a boutique hotel called Meeduma Hotel Kandy Limited located in Kandy, Sri Lanka. Key points include that the hotel will have 21 rooms and adhere to highest hospitality standards while operating in a shariah-compliant manner. Financial projections estimate an internal rate of return over 22% with a potential exit via trade sale after 5 years. The tourism industry in Sri Lanka has grown significantly in recent years and Kandy is a popular tourist destination.
A complete valuation of Starwood hotel with all the methods of valuations.
1. Corporate Governance
2. Financial Analysis
3. Company Valuation
4. Capital Budgeting
5. Portfolio Assignment and assessment
6. Valuation of long term securities
7. Leasing
8. Derivatives and Options strategy
9. Capital Structure
10. Bottom up and dividend policy
Starwood Hotels & Resorts Worldwide, Inc. reported fourth quarter 2014 financial results. Revenue and profits increased compared to the same period last year. The company owns, operates, franchises and manages hotels and resorts under nine brands worldwide. As of March 2015, Starwood had approximately 1,200 properties in 100 countries. Looking ahead, the company expects continued revenue growth in 2015 and announced plans to spin off its vacation ownership business into a separate publicly traded company.
- Starwood Hotels & Resorts had an exceptional year in 2006, with worldwide system-wide RevPAR growth of 9.9% and other strong financial results.
- The CEO, Steven Heyer, resigned in March 2007 and Bruce Duncan was appointed interim CEO due to issues with Heyer's management style.
- Starwood is well positioned for future growth with a strong market position, exceptional partner relationships, and clear strategy for continuing to build shareholder value through growing fee revenues, strengthening its industry-leading pipeline and brand initiatives.
The document provides an investment analysis on Starwood Hotels & Resorts (NYSE: HOT) conducted by Nick Ennis, Bill Geist, Allen Miller, Mike Mongiardini, Tom Walker & Ryan Williams. Key points include:
- The analysts conducted a discounted cash flow valuation that derived an equity value of $15.1 billion for HOT, implying a slight downside to the current share price.
- Growth in the lodging industry, particularly in China and North America, is expected to support increased revenues and profits for HOT.
- HOT's transition to an asset-light business model is expected to improve returns and reduce debt, supporting a higher valuation multiple.
The document discusses asset allocation trends among financial advisors in the Middle East based on a survey. It finds that exposure to global developed market equities and structured notes are expected to increase the most over the next year. Emerging markets and GCC stocks are also popular but hedge funds remain less so. Dubai is establishing itself as a leading financial center in the region, having attracted many international asset managers to set up operations there. The developing regulatory environment and growth of the UAE economy are contributing to Dubai's rise.
One of the harder decisions to make before entering into an acquisition is assessing the value (vs price) of an acquirer's shares when common shares are the primary consideration paid to sellers. Obviously this is true when the acquirer is public, but also it is an issue that should be vetted when the acquirer is an SEC registrant.
Jay T Anderson Vail Resorts - Final Draft Jay T Anderson
This equity research report analyzes Vail Resorts Inc., which operates 11 mountain resorts in the US and Australia. The report discusses the ski resort industry, Vail's business model in mountain operations, lodging, and real estate. It analyzes Vail's growth strategy, competitive advantages, financial performance, and valuation. The analyst values Vail at $145.88 per share, reflecting 12.4% upside, and recommends the fund buy the stock due to Vail's market leading position and focus on investments to enhance the guest experience.
This document provides an overview of an investment opportunity to acquire a 37.55% equity stake in a boutique hotel called Meeduma Hotel Kandy Limited located in Kandy, Sri Lanka. Key points include that the hotel will have 21 rooms and adhere to highest hospitality standards while operating in a shariah-compliant manner. Financial projections estimate an internal rate of return over 22% with a potential exit via trade sale after 5 years. The tourism industry in Sri Lanka has grown significantly in recent years and Kandy is a popular tourist destination.
Hyatt Hotels Corporation is a global hospitality company founded in 1957 with headquarters in Chicago, Illinois. It operates 587 hotels across 54 countries with 164,925 rooms. Hyatt has expanded significantly since the 1960s through hotel openings, acquisitions of other brands like AmeriSuites, and the introduction of new brands such as Andaz, Hyatt House, and Hyatt Ziva resorts. Hyatt focuses on luxury and upscale segments and maintains a diverse portfolio of owned, managed, and franchised properties.
The GCC is in a fateful economic battle that has troubling cyclical, structural, and systemic components — driven by risks around oil and a disruptive post-pandemic digital world for which it is ill-prepared. Businesses are unravelling as entitlements are withdrawn and regulations rolled back. This paper proposes to reframe relationship between the public and private sectors, rewarding companies that transition from dependency and hopeless business models, while helping govts achieve fiscal sustainability.
Amlak Finance, the largest real estate financier in the Middle East, signed a $1.4 billion syndicated facility with Emirates Islamic Bank. The facility is intended to support Amlak's real estate investments and growth plans. Amlak's CEO said the deal exhibits confidence in the company's strategy and marks an important milestone. Emirates Islamic Bank's CEO said the partnership adds a new dimension to their strategic alliances portfolio. The syndicated facility was substantially oversubscribed.
The document provides an analysis of stock valuations in the Saudi Arabian market. It finds that earnings growth is slowing, with projected earnings growth of 29.1% in 2005 and 18.9% in 2006, down from over 50% in previous years. However, the Tadawul stock index has been rising faster than earnings, creating a "credibility gap". The analysis also finds that Saudi stocks trade at high price-to-earnings ratios even after accounting for fast earnings growth, and that valuations may compress as earnings growth slows. Several objections to the bearish view are addressed, but the document concludes Saudi stocks appear overvalued relative to global averages.
Host Hotels and Resorts operates primarily in the hotel and lodging segment. It owns luxury and upper upscale hotels across the United States as well as in other countries. However, it is highly dependent on the US market, which accounts for over 90% of its revenue. To address this over-reliance and capitalize on global opportunities, Host Hotels should diversify its business strategy through joint ventures in other segments like food and beverage, reduce its dependency on any single market by expanding into new international markets, and address factors like safety perceptions that negatively impact travel.
Brinker Capital will reallocate its Destinations mutual fund portfolios to a series of institutional class sub-advised multi-manager mutual funds in order to comply with the DOL Fiduciary Rule and provide a more cost-effective solution for investors. The objectives and portfolio management team of the Destinations portfolios will remain unchanged, and Brinker Capital will transition to a level fee structure that provides a simplified pricing schedule for advice and services. The reallocation to mutual funds will allow Destinations portfolios to maintain the same strategies and risk profiles but in a more cost-efficient structure aligned with the DOL Fiduciary Rule.
The document is a supplement from Global Investor/ISF magazine celebrating achievement in the Middle East region. It announces that MedSecurities has been awarded Best Broker of the Year for the third consecutive year by Global Investor ISF. It contains articles on topics such as investor preferences in the Middle East, profiles of Qatar and Dubai, Saudi Arabia opening up, and regional awards for CEO of the Year, best asset managers, brokers, and more. The supplement aims to recognize high achievement in the asset management industry across the Middle East.
Private Equity In Mena Tadhamon Research Note April 2011Junaid Jafar
Private equity activity in the MENA region declined in 2010. Fundraising fell 58% to $448 million while the value of deals increased 67% to $1.07 billion, driven mainly by investments in the UAE. Top sectors were information technology, healthcare, and financial services. However, private equity in the region faces challenges including difficulty raising capital for smaller funds, limited openness of family-owned businesses to outside investment, and lack of experienced professionals and transparency.
This document brings together a set of latest data points and publicly available information relevant for Hospitality. We are very excited to share this content and believe that readers will benefit immensely from this periodic publication immensely.
Amer Group - Initiation of Coverage - September 2016Mohamed Marei
This document provides an initiation of coverage report on Amer Group by Prime Investment Research. It values Amer Group at EGP 1,211.21 per share, with an upside potential of 5.1% from the current trading price. It forecasts Amer Group's revenues to grow until 2018 and then decline as real estate project recognition ends. It also identifies risks such as over-reliance on tourism destinations and issues with the business model transition. Overall, the report recommends reducing positions in Amer Group gradually due to downside risks and issues with the distorted business model.
Simon Property Group is the largest publicly traded REIT, with over 350 retail properties globally. It has achieved a 1,915% total return since its IPO in 1993. While it spun off some lower quality strip malls into Washington Prime Group, Simon focuses on high quality malls and outlets. It utilizes mergers and acquisitions as well as joint ventures to grow, and forecasts continued growth in funds from operations through 2018. Analysts currently have a strong buy recommendation on the stock.
The document provides information on Wisdom Capital LLC, a New York-based debt fund that provides mezzanine and preferred equity financing for commercial real estate. It summarizes key details of the US Bank Tower property in Los Angeles, including its location in the downtown submarket, leasing activity, vacancy rates, employment and population trends in LA. It also includes the lender's underwriting assumptions and valuation of the property at $432.6 million based on a 5.5% capitalization rate and compares it to other sponsor submissions.
Investa Commercial Property Fund - AnalysisKaran Rathod
This document provides a rating analysis and outlook for Investa Commercial Property Fund (ICPF). Some key points:
- ICPF has a high-quality portfolio of office assets in Australia, particularly in Sydney and Melbourne, giving it a strong business risk profile. However, it faces risks from cyclical office markets and tenant demand.
- The fund has a modest financial risk profile due to moderate leverage that is currently below target ranges. Leverage is expected to temporarily increase following an acquisition but remain within targets.
- The rating has a stable outlook based on expectations that experienced management will maintain conservative policies and credit metrics. Leverage increases from acquisitions are incorporated into forecasts.
- Downgrades could
Starwood Hotels & Resorts is analyzing opportunities to expand its W Hotels brand into Busan, South Korea. An internal analysis shows Starwood has strong brand recognition and resources but also faces weaknesses in oversaturation and high costs. Externally, South Korea's growing tourism and film industry in Busan presents opportunities, but political divisions and high pollution pose threats. Starwood is considering a new W Hotel in Busan to target young travelers and film festival visitors through unique design elements and partnerships.
The document summarizes two resort case studies - the Amandari resort in Bali and the Nazimgarh garden resort in Sylhet, Bangladesh. The Amandari resort is located in a village in Bali and designed to reflect traditional Balinese culture, using local materials like thatch, bamboo, and wood. It consists of detached villas and suites with private pools and gardens. The Nazimgarh resort is located in hills near Sylhet and divided into accommodation, restaurant, and parking areas. It contains different room types and facilities like a kids zone, gym, and restaurants. Both resorts utilize landscaping and greenery to cope with warm, humid climates and incorporate local architectural styles and materials.
- Gilt Groupe is a flash sales company that sells apparel, home goods, and other items through daily deals.
- Gilt has transitioned from a monolithic architecture to a service-oriented one with services like user, feature configuration, and favorite brands services.
- MongoDB is used at Gilt for user profiles and feature configuration due to its ease of use, scaling, and availability. Data is replicated from MongoDB to Postgres for legacy applications.
- Best practices for MongoDB include connection pool tuning, indexing cautiously, using short field names, and using explain() during development.
The document appears to be a proposal submitted by Vishwajeet Bharti for a project on customer loyalty at Big Bazaar stores. It includes an introduction to Big Bazaar as a company, a literature review on customer loyalty programs, and outlines the objectives, methodology, and proposed structure of the project. The proposal discusses examining Big Bazaar's loyalty programs, promotion techniques, customer experience initiatives and analyzing their effectiveness at improving customer loyalty. Primary and secondary research methods including surveys and statistical analysis are proposed to evaluate the impact of Big Bazaar's efforts.
Customer Loyalty Programs In Itc Ltd, Indiaamogh21
ITC Ltd offers comprehensive loyalty programs for its luxury brands Wills Lifestyle and hotel brands including ITC luxury hotels. The Wills Lifestyle program offers benefits like no-questions-asked returns, customized service, and previews of collections. The hotel program has three tiers - Silver, Gold, and Select Gold - offering benefits like earning reward points, upgrades, and complimentary amenities. The programs are designed to provide both functional benefits through discounts and rewards as well as emotional and social benefits to improve customer satisfaction and drive intentional and behavioral loyalty. Customers are not demoted between tiers so there is no risk of damaging loyalty once a level is achieved.
The document is a team agenda for analyzing Starwood Hotels & Resorts. It includes an executive summary on Starwood provided by Ivy, a company analysis by Shinichi, an industry analysis also by Shinichi, an analysis of customers and competition by Pramod, a marketing plan by Pramod, details on the management team by Greg, and the financial plan and conclusion also by Greg. The team members will present on their assigned sections to complete the analysis of Starwood.
Lori Peniston is an interior designer, artist, and educator seeking a design position. She has 20 years of experience in interior design, art installations, teaching, and more. Notable past projects include installations at the Grove in LA, Devon Tower in Oklahoma City, and MGM Casino in China. She is proficient in programs like AutoCAD, Revit, and hand rendering. Testimonials praise her creativity, problem-solving skills, passion, and ability to take initiative.
Hyatt Hotels Corporation is a global hospitality company founded in 1957 with headquarters in Chicago, Illinois. It operates 587 hotels across 54 countries with 164,925 rooms. Hyatt has expanded significantly since the 1960s through hotel openings, acquisitions of other brands like AmeriSuites, and the introduction of new brands such as Andaz, Hyatt House, and Hyatt Ziva resorts. Hyatt focuses on luxury and upscale segments and maintains a diverse portfolio of owned, managed, and franchised properties.
The GCC is in a fateful economic battle that has troubling cyclical, structural, and systemic components — driven by risks around oil and a disruptive post-pandemic digital world for which it is ill-prepared. Businesses are unravelling as entitlements are withdrawn and regulations rolled back. This paper proposes to reframe relationship between the public and private sectors, rewarding companies that transition from dependency and hopeless business models, while helping govts achieve fiscal sustainability.
Amlak Finance, the largest real estate financier in the Middle East, signed a $1.4 billion syndicated facility with Emirates Islamic Bank. The facility is intended to support Amlak's real estate investments and growth plans. Amlak's CEO said the deal exhibits confidence in the company's strategy and marks an important milestone. Emirates Islamic Bank's CEO said the partnership adds a new dimension to their strategic alliances portfolio. The syndicated facility was substantially oversubscribed.
The document provides an analysis of stock valuations in the Saudi Arabian market. It finds that earnings growth is slowing, with projected earnings growth of 29.1% in 2005 and 18.9% in 2006, down from over 50% in previous years. However, the Tadawul stock index has been rising faster than earnings, creating a "credibility gap". The analysis also finds that Saudi stocks trade at high price-to-earnings ratios even after accounting for fast earnings growth, and that valuations may compress as earnings growth slows. Several objections to the bearish view are addressed, but the document concludes Saudi stocks appear overvalued relative to global averages.
Host Hotels and Resorts operates primarily in the hotel and lodging segment. It owns luxury and upper upscale hotels across the United States as well as in other countries. However, it is highly dependent on the US market, which accounts for over 90% of its revenue. To address this over-reliance and capitalize on global opportunities, Host Hotels should diversify its business strategy through joint ventures in other segments like food and beverage, reduce its dependency on any single market by expanding into new international markets, and address factors like safety perceptions that negatively impact travel.
Brinker Capital will reallocate its Destinations mutual fund portfolios to a series of institutional class sub-advised multi-manager mutual funds in order to comply with the DOL Fiduciary Rule and provide a more cost-effective solution for investors. The objectives and portfolio management team of the Destinations portfolios will remain unchanged, and Brinker Capital will transition to a level fee structure that provides a simplified pricing schedule for advice and services. The reallocation to mutual funds will allow Destinations portfolios to maintain the same strategies and risk profiles but in a more cost-efficient structure aligned with the DOL Fiduciary Rule.
The document is a supplement from Global Investor/ISF magazine celebrating achievement in the Middle East region. It announces that MedSecurities has been awarded Best Broker of the Year for the third consecutive year by Global Investor ISF. It contains articles on topics such as investor preferences in the Middle East, profiles of Qatar and Dubai, Saudi Arabia opening up, and regional awards for CEO of the Year, best asset managers, brokers, and more. The supplement aims to recognize high achievement in the asset management industry across the Middle East.
Private Equity In Mena Tadhamon Research Note April 2011Junaid Jafar
Private equity activity in the MENA region declined in 2010. Fundraising fell 58% to $448 million while the value of deals increased 67% to $1.07 billion, driven mainly by investments in the UAE. Top sectors were information technology, healthcare, and financial services. However, private equity in the region faces challenges including difficulty raising capital for smaller funds, limited openness of family-owned businesses to outside investment, and lack of experienced professionals and transparency.
This document brings together a set of latest data points and publicly available information relevant for Hospitality. We are very excited to share this content and believe that readers will benefit immensely from this periodic publication immensely.
Amer Group - Initiation of Coverage - September 2016Mohamed Marei
This document provides an initiation of coverage report on Amer Group by Prime Investment Research. It values Amer Group at EGP 1,211.21 per share, with an upside potential of 5.1% from the current trading price. It forecasts Amer Group's revenues to grow until 2018 and then decline as real estate project recognition ends. It also identifies risks such as over-reliance on tourism destinations and issues with the business model transition. Overall, the report recommends reducing positions in Amer Group gradually due to downside risks and issues with the distorted business model.
Simon Property Group is the largest publicly traded REIT, with over 350 retail properties globally. It has achieved a 1,915% total return since its IPO in 1993. While it spun off some lower quality strip malls into Washington Prime Group, Simon focuses on high quality malls and outlets. It utilizes mergers and acquisitions as well as joint ventures to grow, and forecasts continued growth in funds from operations through 2018. Analysts currently have a strong buy recommendation on the stock.
The document provides information on Wisdom Capital LLC, a New York-based debt fund that provides mezzanine and preferred equity financing for commercial real estate. It summarizes key details of the US Bank Tower property in Los Angeles, including its location in the downtown submarket, leasing activity, vacancy rates, employment and population trends in LA. It also includes the lender's underwriting assumptions and valuation of the property at $432.6 million based on a 5.5% capitalization rate and compares it to other sponsor submissions.
Investa Commercial Property Fund - AnalysisKaran Rathod
This document provides a rating analysis and outlook for Investa Commercial Property Fund (ICPF). Some key points:
- ICPF has a high-quality portfolio of office assets in Australia, particularly in Sydney and Melbourne, giving it a strong business risk profile. However, it faces risks from cyclical office markets and tenant demand.
- The fund has a modest financial risk profile due to moderate leverage that is currently below target ranges. Leverage is expected to temporarily increase following an acquisition but remain within targets.
- The rating has a stable outlook based on expectations that experienced management will maintain conservative policies and credit metrics. Leverage increases from acquisitions are incorporated into forecasts.
- Downgrades could
Starwood Hotels & Resorts is analyzing opportunities to expand its W Hotels brand into Busan, South Korea. An internal analysis shows Starwood has strong brand recognition and resources but also faces weaknesses in oversaturation and high costs. Externally, South Korea's growing tourism and film industry in Busan presents opportunities, but political divisions and high pollution pose threats. Starwood is considering a new W Hotel in Busan to target young travelers and film festival visitors through unique design elements and partnerships.
The document summarizes two resort case studies - the Amandari resort in Bali and the Nazimgarh garden resort in Sylhet, Bangladesh. The Amandari resort is located in a village in Bali and designed to reflect traditional Balinese culture, using local materials like thatch, bamboo, and wood. It consists of detached villas and suites with private pools and gardens. The Nazimgarh resort is located in hills near Sylhet and divided into accommodation, restaurant, and parking areas. It contains different room types and facilities like a kids zone, gym, and restaurants. Both resorts utilize landscaping and greenery to cope with warm, humid climates and incorporate local architectural styles and materials.
- Gilt Groupe is a flash sales company that sells apparel, home goods, and other items through daily deals.
- Gilt has transitioned from a monolithic architecture to a service-oriented one with services like user, feature configuration, and favorite brands services.
- MongoDB is used at Gilt for user profiles and feature configuration due to its ease of use, scaling, and availability. Data is replicated from MongoDB to Postgres for legacy applications.
- Best practices for MongoDB include connection pool tuning, indexing cautiously, using short field names, and using explain() during development.
The document appears to be a proposal submitted by Vishwajeet Bharti for a project on customer loyalty at Big Bazaar stores. It includes an introduction to Big Bazaar as a company, a literature review on customer loyalty programs, and outlines the objectives, methodology, and proposed structure of the project. The proposal discusses examining Big Bazaar's loyalty programs, promotion techniques, customer experience initiatives and analyzing their effectiveness at improving customer loyalty. Primary and secondary research methods including surveys and statistical analysis are proposed to evaluate the impact of Big Bazaar's efforts.
Customer Loyalty Programs In Itc Ltd, Indiaamogh21
ITC Ltd offers comprehensive loyalty programs for its luxury brands Wills Lifestyle and hotel brands including ITC luxury hotels. The Wills Lifestyle program offers benefits like no-questions-asked returns, customized service, and previews of collections. The hotel program has three tiers - Silver, Gold, and Select Gold - offering benefits like earning reward points, upgrades, and complimentary amenities. The programs are designed to provide both functional benefits through discounts and rewards as well as emotional and social benefits to improve customer satisfaction and drive intentional and behavioral loyalty. Customers are not demoted between tiers so there is no risk of damaging loyalty once a level is achieved.
The document is a team agenda for analyzing Starwood Hotels & Resorts. It includes an executive summary on Starwood provided by Ivy, a company analysis by Shinichi, an industry analysis also by Shinichi, an analysis of customers and competition by Pramod, a marketing plan by Pramod, details on the management team by Greg, and the financial plan and conclusion also by Greg. The team members will present on their assigned sections to complete the analysis of Starwood.
Lori Peniston is an interior designer, artist, and educator seeking a design position. She has 20 years of experience in interior design, art installations, teaching, and more. Notable past projects include installations at the Grove in LA, Devon Tower in Oklahoma City, and MGM Casino in China. She is proficient in programs like AutoCAD, Revit, and hand rendering. Testimonials praise her creativity, problem-solving skills, passion, and ability to take initiative.
Texas is located in the southern United States, with its capital in Austin. It has a diverse climate and population. Some of its notable features include major universities, professional sports teams like the Cowboys and Texans, state symbols like the bluebonnet flower, and large cities with popular attractions, restaurants, hotels and airports. The document provides an overview of Texas' geography, education, culture, tourism and history at a high level.
Hotel ratings based on the sentiment analysis of guest reviews. We've scoured the internet looking for genuine hotel reviews, which we processed using our sentiment analysis engine. We then proceeded to identify and filter out any outlying reviews. The result is a rating that reflects the opinion of a true hotel guest - not of overly optimistic staff or excessively critical competition.
The document summarizes the amenities and facilities available at the Grand Hyatt Mumbai hotel. It includes 547 rooms, 110 apartments for long stays, two outdoor swimming pools, a fitness center and spa called Club Oasis, 10 meeting rooms that can accommodate groups from 30 to 1300 people, and an outdoor exhibition space. It also describes the various room types like standard rooms, club rooms, suites, and a presidential suite. Restaurant options and other facilities like art tours, shopping plaza, and event spaces are also mentioned.
the 5 star deluxe hotel The Grand Hyatt in Mumbai is one of the ideal places to relax and unwind on your tour to Mumbai city. With its easy accessibility to the Mumbai Chhatrapati Shivaji International Airport and domestic airport further makes it a truly renowned five star deluxe airport hotel in Mumbai.
A strategical analysis of the Sofitel Golden Mile in Montreal, Canada, made for an Organizational Policy class at McGill University. Disclaimer: While our data was collected through secure sources, this presentation represents our personal interpretation of this data. We do not accept any responsibility as to the accuracy of this interpretation
This document describes the amenities and facilities of a luxury hotel and resort located in Asia. It includes descriptions of suites ranging from 70 square meters to over 350 square meters. It highlights facilities like pools, a gym, spa, golf course, and kids areas. The resort aims to provide an exceptional experience with high-end accommodations, extensive meeting and convention space, numerous dining options, entertainment venues, and wellness services.
The Leela Kempinski Kovalam Beach in Kerala is located a short drive from the Trivandrum International Airport. It is Kerala's largest beachside resort with 182 rooms and suites spread across verdant acres between two sweeping beaches. The resort offers panoramic views of the famous Kovalam shoreline from its perch on a rock face. It was awarded the National Tourism Award by the Government of India for the Best Luxury Hotel. The resort has large event spaces that can accommodate up to 900 people theater-style or 400 people for round tables on the beach.
This letter thanks the Hotel Zaza staff for their excellent service during a wedding reception held at the hotel on June 20, 2015. The catering manager, Kristina Madsen, did an outstanding job coordinating all event details. The ballroom and four-course dinner from the DragonFly restaurant were spectacular. Several other staff members also provided excellent service, including the beverage manager, bartenders, maid service, bellmen, valet attendants, and front desk staff who went above and beyond to help an elderly guest. The letter concludes by thanking the hotel staff for making the wedding reception memorable and offering a positive referral.
The app “It Feels Like” provides users a means of viewing their current weather conditions in an adventurous fashion. It takes current local weather information aggregated from Data Canvas nodes and compares this to a database of typical weather conditions from various international cities and finds the match with most similar weather. Once the match is found, “It Feels Like” presents to the user further visual information of the city and the season which it feels like. This could help recollect feelings from an old vacation spot, serve as a guide to possibly the next destination or introduce people to somewhere completely new.
For your viewing pleasure
I receive several PowerPoint presentations through e-mail, so I thought I'd share them. I just post them. I didn't creat them :)
www.PowerLegacy.Com
ITC Maurya Hotel is one of the oldest and most luxurious hotels in New Delhi. This luxurious property of ITC was established in the year 1988. The name of the hotel was named after the great Mauryan Dynasty, which presented India its golden age where art, culture and heritage flourished. This hotel is the choice of international celebrities, businessmen and sport stars too.For quick and booking call the 24X7 hr helpline + 91-120-4556565/ +91-9810893332
Email ID- info@ijdreamvacation.com
Just browse - http://www.luxury-hotel-delhi.com/itc-maurya-hotel-delhi.php
Address- IJ Dream Vacation Pvt. Ltd.
306, Ocean Complex,
Sector-18, Noida - 201301, India
Goldmoney investor presentation November 2020Goldmoney Inc.
Goldmoney Inc. is a precious metals focused financial services company. It provides online precious metals custody and trading services through its Goldmoney Holding platform. The company reported record quarterly revenue and net income in Q2 2021, driven by strong growth across its business lines including Goldmoney.com, SchiffGold, and its investment in Menē Inc. Goldmoney has a global network of vaults storing over $2.5 billion in client assets and pursues a business model that aims to generate returns through accumulating precious metals over time.
The document is an investor deck for XAU XAUMF (presumably a precious metals company) that contains the following information:
1. It discusses forward-looking statements and includes cautionary language about uncertainties in projections.
2. It outlines the company's founding mission to build a safe financial service focused on precious metals and establish global client relationships through accessible precious metals-backed savings.
3. It provides an overview of the company's subsidiaries and investments that help demonstrate the commercial viability of a "Goldmoney Economy" and broaden access to physical gold.
- The company reported a profit before tax of $369.2m for the year ended 31 December 2021, compared to a loss of $50.4m in the previous year.
- Gross premiums written increased by 30% to $4,618.9m, while the combined ratio improved to 93% from 109% in 2020.
- Prior year reserve releases were $209.8m for 2021. The capital position remains strong at 27% of requirements.
- A dividend of 12.9p per share will be paid in respect of 2021 results.
This document provides a 3 quarter financial update for Goldmoney Inc., a precious metals custodian. It summarizes the company's various business divisions including its core Goldmoney Holding business, SchiffGold coin and bullion dealership, Mene jewelry business, and recent entry into cryptocurrency custody through BlockVault. The summary highlights growing revenue, margins, and assets under custody despite challenges in precious metals markets. It also outlines Goldmoney's strategy of investing in complementary businesses and spinoffs that contribute to its overall return on metal weight business model.
Goldmoney Investor Presentation February 2021Goldmoney Inc.
This document contains an investor presentation for Goldmoney Inc. It discusses Goldmoney's mission to build a safe financial service focused on precious metals and its subsidiaries that help broaden access to physical gold. Goldmoney follows a return on metal weight model where its precious metal position grows over time as the business earns metals. Recent financial highlights show increasing revenue, profits, and client assets under custody. The corporate metal position reached a record high.
- Expedia is the largest online travel company in the world with a global presence in over 70 countries. It generates over $30 billion in annual gross bookings.
- The presentation outlines Expedia's competitive advantages including its global scale, diverse demand sources, extensive travel supply footprint, and investment in technology.
- Expedia is pursuing significant growth opportunities through expanding in key markets like hotels and mobile, while also benefiting from the ongoing shift from offline to online travel booking.
The document provides Greenspring Wealth Management's 2010 investment outlook presented by Patrick Collins. It discusses important disclosures for investors and summarizes investment performance in 2009. Key themes for 2010 discussed include valuations returning to normal across asset classes, long-term demographic trends favoring emerging markets, increasing taxes to fund government debt, and whether inflation or deflation will emerge.
The document provides an overview of Cedar Fair, a regional amusement park operator. It discusses Cedar Fair's portfolio of 14 best-in-class amusement parks and water parks across North America that entertain over 23 million guests annually. It also outlines Cedar Fair's strategy to continue growing revenue and profits through initiatives like capital investments, enhancing the guest experience, and opportunistically investing excess cash flow. The document emphasizes Cedar Fair's experienced management team, history of strong financial performance, and goals to achieve over $500 million in adjusted EBITDA by 2018 through its FUNforward 2.0 growth plan.
2018 Vail Resorts Investors Conference PresentationVail Resorts IR
The document discusses Vail Resorts' 2018 Investors Conference, noting caution on forward-looking statements. It provides an overview of Vail Resorts' strategic focus on building a world-class resort network, investing in the guest experience, using technology and data to drive marketing, and pursuing a targeted acquisition strategy to expand its network.
- The document discusses Cedar Fair's financial performance from 2010-2014, highlighting increasing net revenues, adjusted EBITDA, and distribution yields over time.
- Cedar Fair owns and operates 11 amusement parks, 3 water parks, 5 hotels, and other attractions across North America, entertaining over 23 million guests annually.
- The company has executed a growth strategy called "FUNforward" to enhance the guest experience and increase revenues, with a goal of over $450 million in adjusted EBITDA by 2016.
- The document provides an overview of AuRico Gold's Q1 2013 financial results conference call and webcast scheduled for May 10, 2013.
- It includes forward-looking statements and cautions that actual results may differ from projections. Factors like commodity prices, exchange rates, reserves, costs and economic conditions could affect results.
- Highlights from Q1 2013 include $1 billion in proceeds from portfolio optimization, a strong balance sheet, and the Young-Davidson mine ramp-up on track.
The document provides an overview of AuRico Gold's Q1 2013 financial results conference call and webcast. It includes forward-looking statements and cautions that actual results may differ from projections. Key highlights mentioned are proceeds of $1 billion from portfolio optimization, a reduced share count and exploration budget, and the Young-Davidson mine ramp-up being on target. The document also provides financial results summaries for continuing operations in Q1 2013 versus Q1 2012, as well as cash cost and production details for Young-Davidson and El Chanate mines. Adjusted net earnings are reconciled and commentary is provided by the President and CEO on the transformed company going forward.
This presentation discusses Molson Coors' strategic framework and priorities. It summarizes that Molson Coors aims to drive sustainable growth and long-term shareholder returns through brand-led profit growth, cash generation, and disciplined capital allocation with a focus on profit after capital charge. Key priorities for 2017 include integrating the MillerCoors acquisition, achieving cost savings, paying down debt, and delivering top- and bottom-line performance.
This document provides an overview of Cedar Fair and its business strategy. It discusses Cedar Fair's focus on enhancing the guest experience through investments, its strong and experienced management team, and its track record of generating stable cash flows. The document also outlines Cedar Fair's strategic growth drivers under its FUNforward 2.0 plan to increase adjusted EBITDA to $500 million by 2018 through price increases, advance ticket sales, technology, and capital expenditures. Cedar Fair maintains a disciplined approach to capital allocation between reinvestment in the business and returning capital to unitholders.
This document provides an overview of Winnebago Industries' leadership team and business segments. It lists the names and titles of the corporate leadership team members. It then provides a high-level forward-looking statement disclaimer and outlines the company's strategic priorities, including strengthening its core RV business and expanding into new profitable markets.
- Devon Energy presented at the UBS Global Oil and Gas Conference on May 23, 2018.
- Devon outlined its 2020 vision which includes growing higher-value oil production in the Delaware and STACK areas, improving financial strength, and returning cash to shareholders.
- Key initiatives include a $1 billion share repurchase program, raising the dividend by 33%, and a $1 billion debt reduction plan.
Jan-Pieter Lips discusses transforming Aimia's coalitions in EMEA. He highlights Nectar UK's strong momentum with growth in members and points issuance. Nectar has strengthened member and partner value through successful initiatives like Summer Double Value. Air Miles Middle East saw increased activity after refreshing its value proposition. Breaking into new areas, Nectar launched with eBay and innovated with Oxfam. Codifying successful models could unlock growth, such as trialling Nectar Local in Italy. The presentation outlines pillars to drive continued EMEA coalition leadership through strengthening existing programs, breaking into new areas, and codifying transferable success.
Jan-Pieter Lips discusses transforming Aimia's coalitions in EMEA. He outlines strategies to strengthen existing coalitions like Nectar UK and Air Miles Middle East by increasing member value and engagement. He also discusses breaking away from competitors by embracing digital with partnerships like eBay and using data insights innovatively with Oxfam. Finally, he talks about codifying successful models like Nectar UK to launch new programs in other regions, such as a pilot with small businesses in Italy. The overall aim is to continue driving leadership in EMEA coalitions.
The document discusses Cedar Fair, a regional amusement park operator. It notes that Cedar Fair has 14 best-in-class parks that attract over 23 million guests annually. It also discusses Cedar Fair's strong management team, history of growth, and strategy to continue growing earnings through initiatives like FUNforward 2.0, which targets adjusted EBITDA of $500 million by 2018. The document emphasizes Cedar Fair's loyal customer base, industry advantages, and balanced approach to capital allocation.
MGM Resorts International reported first quarter 2018 earnings. Net income was $223 million, up from $136 million in the prior year quarter due to a non-cash tax benefit. Consolidated revenue increased 4% to $2.8 billion while domestic resort revenue decreased 1%. Adjusted Property EBITDA for domestic resorts decreased 5% to $616 million due to declines at Mandalay Bay and Monte Carlo. Adjusted EBITDA for CityCenter operations decreased 16% and MGM China's Adjusted EBITDA rose 5% with the opening of MGM Cotai.
2. 2
FORWARD-LOOKING STATEMENTS
These 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 release
that describe the Company’s business strategy, outlook, objectives, plans, intentions or goals also are forward-looking
statements. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties and other
factors that may cause actual results to differ materially from those anticipated at the time the forward-looking statements are
made. Future results, performance and achievements may be affected by general economic conditions including the severity and
duration 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 of
residential 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 the
internet 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 their
interpretation), travelers’ fears of exposure to contagious diseases, risk associated with the level of our indebtedness, risk
associated with potential acquisitions and dispositions, and other circumstances and uncertainties. There can also be no
assurance that agreements will be entered into for the hotels in the Company’s pipeline and, if entered into, the timing of any
agreement and the opening of the related hotel. These risks and uncertainties are presented in detail in our filings with the
Securities and Exchange Commission. Although we believe the expectations reflected in such forward-looking statements are
based upon reasonable assumptions, we can give no assurance that our expectations will be attained or that results will not
materially differ. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of
new information, future events or otherwise.
Please note that these presentations include non-GAAP financial measures. For definitions of certain terms used herein and a
presentation of the most directly comparable financial measure calculated and presented in accordance with GAAP and a
reconciliation of the differences between the non-GAAP financial measure disclosed and the most comparable financial measure
calculated and presented in accordance with GAAP, please refer to the Company’s web site at
www.starwoodhotels.com.corporate/investor_relations.html.
4. 4
Shareholder Value Creation
Frits van Paasschen 8:30-9:00
Strategy and Outlook
Middle East Review Guido de Wilde 9:00-9:40
South Asia Review Dilip Puri 9:40-10:00
Break
Starwood Strategy : Individual Spirit
and Collective Strength
Frits van Paasschen 10:15-11:15
Starwood Investment Proposition Vasant Prabhu 11:15-12:15
Break
3-Year Outlook Vasant Prabhu 12:30-1:00
Q&A All 1:00-1:30
Lunch
Our Agenda Today
6. 6
Shareholder
Value Creation at
Starwood
»Sustaining Innovation
»Delivering Operational Excellence
»Growing the System
»Executing Asset Light Strategy
»Generating Significant Cash
SHAREHOLDER VALUE CREATION AT STARWOOD
S&P
98%
MAR
164%
HOT
256%
10-Year Total Shareholder Return
Source: Bloomberg. Represents 10-year total shareholder returns from 31-Dec-02 through 31-Dec-12 with monthly returns and reinvestment in security
6
7. 7
Sustaining
Innovation
» 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 STARWOOD
7
8. 8
Delivering Operational
Excellence
AL MAHA DESERT RESORT AND SPA, DUBAI
THE 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 levels
SHAREHOLDER VALUE CREATION AT STARWOOD
2009 - 2012
Note: Samsestore 2012 margins vs. Samestore 2007 Margins for Company Operated and Owned/Leased Hotels 8
9. 9
5% Net Rooms Growth
Growing
the 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 company
100
200
300
400
Operating
Rooms
SHAREHOLDER VALUE CREATION AT STARWOOD
9
10. 10
Executing Asset-Light Strategy
THE ST. REGIS BAL HARBOUR RESORT
ALOFT 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 of
almost $800 million since 2009
SHAREHOLDER VALUE CREATION AT STARWOOD
10
11. 11
Extraordinary
Cash Generation
» Reduced net debt from over $3.5B in 2008
to 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 drive
growth and build capability
SHAREHOLDER VALUE CREATION AT STARWOOD
$3,248
$3,523
$2,826
$2,051
$1,511
$811
1/1
2008
1/1
2009
1/1
2010
1/1
2011
1/1
2012
1/1
2013
Net Debt Reduction of $2.4B since 2008
11Note: Net debt consists of Long-term debt and short term debt, net of cash equivalents and restricted cash
13. 2
Dramatic
Growth in the
Global Middle
Class
» It took 100 years of
economic growth for the
Middle Class to reach 1
billion
» 20 years to reach 2
billion
» In next 20 years, the
number of people
considered Middle
Class will reach 5 billion
STARWOOD STRATEGYAND OUTLOOK
1890 1990 2010 2030
2BILLION
5BILLION
1BILLION
Source: OECD 13
14. 3
Rapid
Urbanization
» With the Rise in the
Middle Class and
wealth, more people will
live in cities
» Global Urbanization
– 1950: 30%
– 2010: 50%
– 2050: 70%
STARWOOD STRATEGYAND OUTLOOK
Source: UN World Urbanization Prospects 14
16. 5
REVOLUTION
IN GLOBAL
TRAVEL
» 3 billion people entering
the global economy
» Regional travel patterns
are evolving
» Enormous outbound
travel opportunity from
Fast Growing Markets
» Rise of the “Mega
Traveler
STARWOOD STRATEGYAND OUTLOOK
Source: OECD
2011–2030
CAGR
5%
3%
5%
3%Europe
Asia Pacific
Americas
Africa Middle
East
200
400
600
800
1,000
1,200
1,400
1,600
1,800
1990 1995 2000 2005 2010 2015 2020 2025 2030
Number of
Tourist Arrivals
(in millions)
TOURIST ARRIVALS BY ORIGIN
16
17. 6
Starwood: the Best Positioned Hotel
Company to Capitalize on Secular
Growth Trends in Travel
SHERATON DUBAI MALL OF THE EMIRATES HOTEL
SHERATON 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 Potential
STARWOOD STRATEGYAND OUTLOOK
17
18. 7
STARWOOD
STRATEGY:
INDIVIDUAL
SPIRIT,
COLLECTIVE
STRENGTH
» Starwood’s brands lie at
the heart of our
competitive advantage
» Distinguished by a
combination of Lifestyle
Concepts, Design
Leadership and
Innovation
» Collective strength of
SPG and Starwood
centralized services
(Sales, Revenue
Management, Web) unify
our brands and drive
performance
STARWOOD STRATEGYAND OUTLOOK
18
19. 8
STARWOOD STRATEGYAND OUTLOOK
Starwood Outlook
WESTIN 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 timeshare
819
20. 9
Starwood 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 over
next three years
STARWOOD STRATEGYAND OUTLOOK
20
23. 33
MIDDLE EAST
IS A REGION
THAT
MATTERS
» Melting pot of diverse
and complex politics and
religions
» Rich and complex history
» Growing population
» At the crossroads
of globalization
23
24. 44
RICH
HISTORY
» History dates back
to 3500BC
» Innovations in language,
culture, science
» Birthplace of Judaism,
Christianity and Islam
24
25. 55
FAST
GROWING
DYNAMIC
POPULATION
» >50% of population under 30
years
» 1990-2008, population
growth rate was higher than
India and China, and
remains high
» Mosaic of over 350M people
» The UAE’s population is
7.5M
» 2M in Dubai alone with 5%
growth in 2012
Source: OECD/ World Bank 2010; Dubai Statistics Centre
25
26. 6
MIDDLE EAST IS AT THE CROSSROADS OF GLOBALIZATION
» Trade between China and
Arab world and trade with
Africa has increased
tenfold
» UAE, Qatar and Saudi
becoming important hubs
» By 2030, travel into the
region is expected to
triple to 149M arrivals
» Outbound travel is up
400% in last 20 years
» Expected to reach 80M
outbound trips annually
by 2030
Source: UNWTO
26
27. 77
NOT JUST
ABOUT OIL
» 60% of world’s total
proven oil reserves
» Despite economic
crisis, some of the
highest per capita
incomes globally
» Dramatic Growth
in inbound and
outbound tourism
» Arrivals up over 7% per
year since 2005
» Outbound travel
up 8% per year
since 2005
Sources: OPEC; UNWTO
27
28. 88
SHEIKH ZAYED
ROAD – THEN
» Transformation
of Dubai
» Open-Skies policy
» Free Economic Zones
» Promotion of tourism
» 600k population in 1993
» 167 Hotels in 1993
Sources: Dubai Statistics Center; Gulf News
28
29. 99
SHEIKH ZAYED
ROAD – NOW
» UAE's hospitality market
» Revenues of $7.5B
by 2016
» +67% over 2011
» 2.1M population
» 326 Hotels
Sources: Khaleej Times, UAE; Alpen Capital Hospitality Report; Dubai Statistics Center
29
30. 10
OTHERS
FOLLOWING
DUBAI’S LEAD
» Abu Dhabi focusing on culture
with branches of the
Guggenheim and Louvre
opening, along with the Zayed
National Museum
» Qatar investing $11B in new
Doha international Airport, $6B
in Doha Port project and $25B
in other infrastructure
» Saudi Arabia constructing the
$86B King Abdullah Economic
City
30
31. 11
STARWOOD’S
MIDDLE EAST
ADVANTAGE
WESTIN DUBAI MINA SEYAHI BEACH RESORT & MARINA
SHERATON DUBAI MALL OF THE EMIRATES HOTEL
» First mover advantage
» Strong local brand recognition
» Deep local relationships
» Leading loyalty program and
global infrastructure
» Innovative Food and Beverage
Programs
» Best in class talent
31
32. 12
STARWOOD HAS BEEN IN THE
REGION FOR FIVE DECADES
1966 1982 200919841978
2012
2010
Sheraton Kuwait – Starwood’s first
hotel outside of the U.S
Starwood enters Qatar and
Pakistan with Sheraton Entry of W and Aloft brands
Growth in emerging markets –
opening of Sheraton Dushanbe and
signing of Sheraton Aktobe
Luxury Collection takes over
operation of Grosvenor House
and Al Maha
Debut in UAE and KSA with Sheraton
Dubai Hotel Creek & Towers and
Le Méridien Medina
Opened the first worldwide
reservations office in the region
(Bahrain)
Signing of Sheraton Erbil –
marking Starwood’s re-entry
into Iraq after 20 years
FIRST-MOVER ADVANTAGE
32
33. 13
OUR EXPERIENCE
GIVES US AN
ADVANTAGE
» 79 hotels (operating + pipeline)
» More than 22,000 rooms in 13 countries
UAE
33 HOTELS – 21 OPERATING, 12 PIPELINE
SAUDI ARABIA
15 HOTELS - 9 OPERATING, 6 PIPELINE
OTHER
31 HOTELS - 15 OPERATING, 16 PIPELINE
45 Operating
34 Pipeline (Executed)
FIRST-MOVER ADVANTAGE
33
34. 14
THE LARGEST LUXURY/UPPER –UPSCALE HOTEL COMPANY
IN THE MIDDLE EAST
45
25 22
11
0
10
20
30
40
50
Starwood Marriott Hilton Hyatt
MIDDLE EAST HOTELS
FIRST-MOVER ADVANTAGE
Source: STR Census as of December 2012; Starwood Internal Data
34
35. 15
DIVERSE PIPELINE BY BRANDS AND MARKET
Sheraton
26%
Le Méridien
3%
Westin
9%St.
Regis
8%
W
14%
The Luxury
Collection
9%
Four Points by
Sheraton
17%
Aloft
11%
Element
3%
BY BRAND
34 PIPELINE HOTELS
UAE
34%
KSA
20%
Levant
14%
Iraq
9%
Oman
9%
Qatar
3% “Stan”
Countries
11%
BY MARKET
FIRST-MOVER ADVANTAGE
35
43. 23
OUR BRANDS
RESONATE WELL
IN THE MIDDLE
EAST
SHERATON KUWAIT AND FOUR POINTS BY SHERATON KUWAIT
SHERATON DUBAI MALL OF THE EMIRATES
» Second region after North
America to have all nine brands
» Increasing number of
conversion opportunities
» Rejuvenation of Sheraton and
Le Méridien with renovations
» Expansion of existing properties
to meet high-demand
» High-levels of guest satisfaction
43
44. 24
DEEP
RELATIONSHIPS
BUILT ON
DECADES
OF TRUST
» We have a deep understanding
of this part of the world
» Right teams in place to deliver
the promise
» Strong relationships with some
of the most influential royal
families
» Highly influential royal families
are some of the most important
owners of the hotels we operate
44
45. 2525
TAILWIND
FROM OUR
GLOBAL
PLATFORM:
SPG
» Members based in the
Middle East accounted for
350,000 stays in 2012
» SPG community in the
Middle East spends well
above the global average
» SPG accounted for 51%
share of occupancy in 2012
» 21 SPG point “millionaires”
in the region
45
46. 2626
GORDON RAMSEY JEAN GEORGES VONGERICHTEN GARY RHODES
IMPACT OF
FOOD AND
BEVERAGE
» Operate 277 Restaurants
and Bars
» Relationships with world
class chefs
» F&B accounts for 43% of
regions total revenue in
2012
» SPG and F&B Integration
46
47. 27
BEST IN CLASS
TALENT
» Associates from over 100
different nationalities, speaking
over 50 languages
» Approximately 12% of our
workforce are local nationals
» House close to 16,000
associates in staff
accommodations, serve over 15
million meals per year
» 20,000 associates by the end of
2013
47
52. 32
STARWOOD’S
MIDDLE EAST
ADVANTAGE
WESTIN DUBAI MINA SEYAHI BEACH RESORT & MARINA
SHERATON DUBAI MALL OF THE EMIRATES HOTEL
» First mover advantage
» Strong local brand recognition
» Deep local relationships
» Leading loyalty program and
global infrastructure
» Innovative Food and Beverage
Programs
» Best in class talent
52
54. ANCHORED BY INDIA,
SOUTH ASIA IS A REGION
OF OPPORTUNITY
» India GDP expected to grow 8% for next 40 years
» Moving from 10th largest global economy to 6th
largest by 2017
» On track to become world’s 5th largest consumer
market in 2030
» Recent government reforms improving the outlook
» Central bank easing interest rates
» Raising caps on Foreign Direct Investment in certain
sectors: Retail, Aviation, Insurance
W MUMBAI
Sources: World Bank, Global Business Travel Association ("GBTA"), McKinsey “Rise of the Indian Consumer”, CAPA India, HVS T&O report 2012
54
55. LARGE AND GROWING
TRAVEL MARKET
» Population of 1.4B across region, growing faster
than 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 by
2020
» Total domestic traffic at all Indian airports is forecast to
grow from 105M to 356M by 2021
» Sri Lanka and Maldives are among the top 10
destinations for 2013
» Bhutan and Nepal emerging as fast growing
resort markets
SHERATON BANGALORE
Sources: World Travel & Tourism Council's (WTTC) Economic Impact 2012; CAPA India
55
56. STARWOOD’S
SOUTH ASIA
ADVANTAGE
LE MERIDIEN NEW DELHI
SHERATON MALDIVES FULL MOON RESORT & SPA
» First mover advantage
» Strong local brand recognition
» Locally smart regional team and
local infrastructure
» Leading loyalty program
» Best in class talent programs
» Innovative food and beverage
programs
56
57. 5
OUR FIRST-MOVER ADVANTAGE
» Opened 1st Westin in India
» 2009: Launched Four Points in
India with 2 new openings
» Signed 1st Westin management
contract ; 1st new-build non-ITC hotel
in India
» Acquisition of Le Méridien brand
globally; Added 8 Le Méridiens to India
portfolio
» Launched Aloft in India with 2 new
openings
» 1973: 1st Sheraton in India
- Oberoi Sheraton, Mumbai
» 1979: Partnership with ITC
» Established Starwood Sales
Office
» Opened India Customer
Contact Center in Gurgaon
20102005 2011
1973
1979
2009
» Opening of Sheraton in
Bangalore (1st managed
Sheraton; non-ITC)
2007 2012
» Debut into Sri Lanka with
signing of Sheraton and
Four Points
» Expansion in Bangladesh
with signing of Sheraton
and Le Méridien
FIRST-MOVER ADVANTAGE
57
58. OUR FIRST MOVER ADVANTAGE
HAS ALLOWED US TO BUILD
A SIGNIFICANT FOOTPRINT
ACROSS SOUTH ASIA
» 69 hotels (operating + pipeline)
» More than 16,300 rooms in 6 countries
India
Bhutan
Bangladesh
Sri Lanka
Maldives
38 Operating
31 Pipeline (Executed)
INDIA
61 HOTELS – 35 OPERATING, 26 PIPELINE
OTHER SOUTH ASIA
8 HOTELS - 3 OPERATING, 5 PIPELINE
Total
69 HOTELS - 38 OPERATING, 31 PIPELINE
6
FIRST-MOVER ADVANTAGE
58
59. 7
STARWOOD IS THE LARGEST INTERNATIONAL
HIGH-END HOTEL COMPANY IN SOUTH ASIA
Source: STR Census as of December 2012,Upper-Upscale and Luxury Rooms
7
FIRST-MOVER ADVANTAGE
0
1
2
3
4
5
6
7
8
9
Rooms (000’s)
Upper Upscale/ Luxury Rooms
59
60. 8
DIVERSIFIED FOOTPRINT ACROSS ALL BRANDS
Source: Starwood internal data as of March 1, 2013
Four
Points
9% Aloft
7%
Le Méridien
16%
Westin
18%
Sheraton
22%
Luxury
Collection
18%
W
8%
St. Regis
2%
Four
Points
6%
Aloft
7%
Le Méridien
18%
Westin
19%Sheraton
13%
Luxury
Collection
36%
W
1%
PIPELINE + OPERATING ROOMS
8
OPERATING ROOMS
FIRST-MOVER ADVANTAGE
60
61. BROAD REACH ACROSS
PRIMARY AND
SECONDARY
CITIES IN INDIA
» Operating in 21 cities & 14 states
» 8 new cities in pipeline
» Strong penetration in Tier II & III
markets with Four Points and Aloft
brands
» 8 operating hotels with another 5 expected
openings 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 2015-16
Madhya Pradesh
Maharashtra
Andhra Pradesh
Orissa
Jharkhand
Bihar
Uttar Pradesh
Jammu & Kashmir
Himachal
Pradesh
Chhattisgarh
Tamil Nadu
Karnataka
Gujarat
Rajasthan
Punjab
Haryana
Uttaranchal
West Bengal
Assam
Meghalaya
Pondicherry
Goa
Operating
Pipeline
Operating + Pipeline
9
FIRST-MOVER ADVANTAGE
61
62. OPENINGS IN 2013 & 2014
SHERATON CHANDIGARH HOTEL
177 ROOMS, 2013
SHERATON GREATER NOIDA HOTEL
267 ROOMS, 2014
SHERATON BANGALORE WHITEFIELD
HOTEL & CONVENTION CENTER
325 ROOMS, 2014
THE WESTIN CHENNAI VELACHERY
215 ROOMS, OPEN FEB 2013
THE WESTIN BEKAL RESORT & SPA
156 ROOMS, OPENING 2014
LE MERIDIEN MAHABALESHWAR
RESORT & SPA
126 ROOMS, OPENING IN 2013
10
FIRST-MOVER ADVANTAGE
62
63. OPENINGS IN 2013 & 2014
FOUR POINTS BY SHERATON GURGAON
FARIDABAD ROAD
154 ROOMS, 2014
ALOFT AHMEDABAD SG ROAD
176 ROOMS, 2013
W RETREAT & SPA GOA
105 ROOMS, 2014
ALOFT BENGALURU CESSNA
BUSINESS PARK
190 ROOMS, OPENING 2013
ALOFT NEW DELHI AEROCITY
200 ROOMS, OPENING 2014
11
FIRST-MOVER ADVANTAGE
63
64. STRONG LOCAL BRAND RECOGNITION
2011 & 2012 BEST HOTEL COMPANY (WORLD) – Travel & Leisure
BEST BRAND DEVELOPMENT ACROSS CHAIN – SATTE
FASTEST GROWING HOTEL CHAIN 2012 – Today’s Traveller
2011 & 2012 FAVORITE LOYALTY PROGRAM – Conde Nast Traveler India Reader’s Choice
2012 BEST HOTEL LOYALTY PROGRAM – World Travel Awards
2012 FAVORITE HOTEL LOYALTY PROGRAM – Travel & Leisure
2011 BEST NEW OPENING HOTEL (UPSCALE) SHERATON BANGALORE – HICSA
BEST INTERNATIONAL RESORT – W MALDIVES RETREAT &SPA – Lonely Planet
2010 BEST NEW OPENING HOTEL (LUXURY ) – WESTIN MUMBAI – HICSA
BEST NEW OPENING SPA (HOTEL) HEAVENLY SPA – WESTIN MUMBAI – ASIA SPA
BEST HOTEL FOR BUSINESS TRAVELERS ( WOMEN) RUNNERS UP WESTIN MUMBAI
– Travel & Leisure
FAVORITE NEW OPENING HOTEL (INDIA) – 3rd WESTIN GURGAON – Conde Nast
Traveler India Reader’s Choice
TOP 25 TRENDIEST HOTELS – WESTIN HYDERABAD – Tripadvisor
TOP 25 TRENDIEST HOTELS – Tripadvisor
TOP 25 TRENDIEST HOTELS – LE MERIDIEN NEW DELHI – Tripadvisor
BEST CONVENTION HOTEL – LE MERIDIEN KOCHI – National Tourism Awards
1264
65. 1313
Westin Brand in South Asia outperforms competition
WESTIN BRAND
LAUNCH
» First Westin resort opened
in 2007 with 4 successive
Westin openings in the
next 18 months
» Westin makes history
as the fastest international
brand launch in Indian
hospitality
» Superior RevPar Index and
Margin Delivery
» 6 operational and 5 hotels
in pipeline in India
Westin India Footprint
2007 Opened
The Westin Sohna Resort & Spa
2009 Opened
The Westin Pune Koregaon Park
The Westin Hyderabad Mindspace
2010 Opened
The Westin Mumbai Garden City
The Westin Gurgaon, New Delhi
2013 Open
The Westin Chennai Velachery
2014 Opening
The Westin Bekal Resort & Spa
2015/16 Opening
The Westin Jaipur, Infotech City
The Westin Kolkata
The Westin Khandala Resort & Spa
The Westin Noida Delhi NCR
84.5 96.8 111.7
69%
70%
75%
65%
66%
67%
68%
69%
70%
71%
72%
73%
74%
75%
76%
0
20
40
60
80
100
120
2010 2011 2012
RPI SPG Occ %
13
STRONG LOCAL BRAND RECOGNITION
65
66. LOCAL
LEADERSHIP
SUPPORTED
BY LOCAL
INFRASTRUCTURE
STARWOOD SALES OFFICE IN INDIA (EXISTING AND EXPANSION)
NEW REGIONAL OFFICE IN GURGAON
» Local operations and development
team with deep experience
» Sales offices located across region
» 8 regional offices open, with
3 additional planned
» New regional office in Gurgaon
» Selling to local and international
businesses
» Starwood’s 9th Global Customer
Contact Center and the 4th in Asia-
Pacific
1466
67. STRONG AND
RELEVANT
LOYALTY
PROGRAM
» 2nd Fastest growing active
member base in Asia Pacific
» Local business - India is the
leading SPG feeder market for
India hotels by members &
stays
» 27% growth in active
membership and 37% growth in
SPG enrollment since 2011
» Strong recognition in India –
through readers choice awards
from Conde Nast, Travel &
Leisure etc.
1567
68. BEST IN CLASS
TALENT
Regional Team – “Play as a Team” offsite in Jaipur
Regional Team with Starwood Senior Leadership Team
» Graduate Management
Program (GMAP)
» Development of strong internal
& external bench strength
» Starwood Class - 12 months
internship programme in
Starwood properties
» Cross Exposure & International
Work Experience Program
1668
69. INNOVATIVE F&B
PROGRAMS
THE WESTIN GURGAON, NEW DELHI – “SEASONAL TASTES”
THE WESTIN HYDERABAD MINDSPACE – ”PREGO” - THE ITALIAN DESTINATION
» Eat Drink & More – dining
loyalty program with strong
pan-India membership
enrollment
» SPG Restaurant & Bars –
loyalty and enrollment through
F&B
» Award winning Branded
Restaurant Concepts across all
Starwood brands – Prego, Eest,
Bene, Favolla, Kangan,
Seasonal Tastes etc.
1769
74. STARWOOD’S
SOUTH ASIA
ADVANTAGE
LE MERIDIEN NEW DELHI
SHERATON MALDIVES FULL MOON RESORT & SPA
» First mover advantage
» Strong local brand recognition
» Locally smart regional team and
local infrastructure
» Leading loyalty program
» Best in class talent programs
» Innovative food and beverage
programs
74
76. INDIVIDUAL
SPIRIT,
COLLECTIVE
STRENGTH
» Starwood’s brands lie at
the heart of our
competitive advantage
» Distinguished by a
combination of Lifestyle
Concepts, Design
Leadership and
Innovation
» Collective strength of
SPG and Starwood
centralized services
(Sales, Revenue
Management, Web) unify
our brands and drive
performance
76
77. NINE
DISTINCT
GLOBAL
LIFESTYLE
BRANDS
»Renowned lifestyle
hospitality brands with
four and five star
focus
»1,134 properties
»335,415 rooms
»Nearly 100 countries
»In 2012, signed most
deals since before the
economic 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 countries
LUXURY
» 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 countries
UPPER
UPSCALE
» 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 countries
SELECT
SERVICE
77
78. STARWOOD
INNOVATES
WITH A
PASSION
»Innovation is the
heartbeat of our
brands and our
design. It is how we
deepen our
relationships with our
guests and our
customers and stand
apart from the rest
»One great idea creates
another, giving
Starwood the ability to
build upon our
success across nine
compelling brands
78
79. STARWOOD CREATES
EMOTION BY DESIGN
»Our guests don’t just
check in to a hotel.
They are immersed in
an experience
»At Starwood, design
doesn’t begin with a
blueprint. It begins
with a story. And for
each of our nine
brands, that story
captures the emotions
and aspirations of our
guests
»Design That Can Only
Be Starwood
79
81. BEYOND
EXPECTATION
INSPIRED BY THE NEW
GLOBAL ELITE
» Global leader in luxury
» More than doubled to 30
hotels since 2007 –
tripling to almost 40
hotels by 2015
» Global expansion – 3
new hotels in China
(2011), entry into the
Middle East with 3 new
hotels & first hotel in
Africa (2012)
81
82. ST. REGIS BUTLER SERVICE IRIDIUM SPA
ST. REGIS AFICIONADO WORLD-CLASS RESTAURANTS AND CHEFS
UNPARALLELED
EXPERIENCES
» St. Regis Aficionado™
» Privileged access to
unique 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 at
The St. Regis Doha
82
83. 2013 – 2015
Abu Dhabi, Amman,
Cairo, Changsha,
Chengdu, Kuala Lumpur,
Lijiang, Riviera Maya,
Zhuhai
13 HOTELS
62% NORTH AMERICAN
OPERATING & PIPELINE
49 HOTELS
24% NORTH AMERICAN
2007
Aspen, Atlanta, Bahia Beach, Bal Harbour, Bali, Bangkok, Beijing, Bora Bora, Deer
Valley, Doha, Florence, Houston, Lhasa, Mardavall, Mallorca, Mexico City, Monarch
Beach, New York, Osaka, Princeville, Punta Mita, Rome, Saadiyat Island, San
Francisco, Sanya Sanya Yalong Bay, Shenzhen, Singapore, Tianjin, Washington D.C.
NOW
UNPRECEDENTED
GLOBAL GROWTH
SOURCE: STARWOOD INTERNAL
PIPELINE REPORTING AS OF 12/31/12
GLOBAL
GROWTH
83
85. THE
DESTINATION
AUTHORITY
INSPIRED BY
GLOBAL EXPLORERS
» Blending distinction
and global strength
» Combining locally relevant
properties with the strength
of Starwood’s systems and
high-end focus
» Over 80 unique and
celebrated hotels in 29
countries
» Added 6,800 rooms since
2007
85
86. THE LAND ROVER EXPERIENCE DRIVING SCHOOL,
THE EQUINOX GOLF RESORT & SPA, VERMONT, USA
FALCONRY, AL MAHA DESERT RESORT & SPA, DUBAI, UAE
EXPLORE AND
EXPERIENCE
» Market-driven, locally relevant
experiences
» The Luxury Collection Concierge
» The Cocktail Collection
» Global Explorers, Brand
Advocates, Travel Provocateurs
» Destination Guides
by Assouline
» Journeys by The Luxury Collection
86
87. 2013 – 2015
Cusco, Dalian, Dubai,
Hangzhou, Koh Samui,
Nanjing, Nanning, San
Antonio, Seminyak,
Suzhou, Xiamen 57 HOTELS
18% NORTH AMERICAN
OPERATING & PIPELINE
105 HOTELS
16% NORTH AMERICAN
2007
WITH 85 HOTELS IN 29 COUNTRIES, LUXURY COLLECTION MAINTAINS
EXCLUSIVITY WITH INCREASING GLOBAL PRESENCE
NOW
GLOBAL
GROWTH
THE LUXURY
COLLECTION
MAINTAINS
EXCLUSIVITY WITH
INCREASING GLOBAL
PRESENCE
SOURCE: STARWOOD INTERNAL
PIPELINE REPORTING AS OF 12/31/12
87
89. INSIDER
ACCESS
TO A WORLD
OF WOW
INSPIRED BY TRENDSETTERS
» Category innovator
born in NYC and
transformed into a
global design
powerhouse
» Outperforming the
global competition
for the last 10+
years
89
90. CREATING
EXPERIENCES
TO SHOWCASE
WHAT’S NEW AND NEXT
Dynamic guest experiences
through signature programming
» W Happenings (W’s Signature
Event Series)
» Living Room
» W Insider
» Passion Point Activations –
Design, Fashion, Music
» Wet Deck
» B&F vs. F&B
» Bliss Spa, Away Spa
» Whatever / Whenever Service
W HAPPENINGS
WET DECK
LIVING ROOM
90
91. GLOBAL
GROWTH
EXPANDING IN THE
WORLD’S HOTTEST
CITIES AND MOST
EXCLUSIVE RESORT
LOCATIONS
2013–2015
Abu Dhabi, Beijing, Goa,
Guangzhou, Mexico,
Milan, Muscat, Riviera
Maya, Santa Fe de
Bogota, Shanghai, Tel
Aviv, Verbier
20 HOTELS
85% NORTH AMERICAN
OPERATING & PIPELINE
71 HOTELS
39% NORTH AMERICAN
2007
Atlanta, 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, San
Diego, San Francisco, Singapore, Samui, Santiago, Scottsdale, Seattle, Seoul, Silicon
Valley South Beach, St. Petersburg, Taipei, Vieques, Washington, D.C.
NOW
SOURCE: STARWOOD INTERNAL
PIPELINE REPORTING AS OF 12/31/12
91
93. A NEW
PERSPECTIVE
INSPIRED BY CREATIVE MINDS
» Over seven years with
Starwood has led to the
brand’s best portfolio ever
» Reinvented Le Méridien,
turning a disparate collection
of hotels into a strong and
compelling brand
» $2.5B invested in new builds
and renovations since
Starwood took over the
brand in 2005
» Opened 30 new hotels
» 50%+ renovated
» 50 hotels removed from
the system
93
94. COFFEE CULTURE LE MERIDIEN HUB
HIGH-IMPACT ARRIVAL ARTWORK UNLOCK ART
CREATING AN
ENVIRONMENT
THAT STIMULATES
CURIOSITY AND DIALOGUE
» Built brand positioning &
delivery around the arts &
culture:
» Curated art experiences
» Le Méridien Hub
lobby concept
» Coffee culture
» Art partnerships
» Targeting over 150 million
affluent, well-traveled
people worldwide, including
artists, musicians, media
managers, consultants and
more
94
95. EUROPE
NORTH
AMERICA
AFRICA &
MIDDLE EAST
ASIA PACIFIC
11 Hotels
4 Pipeline
28 Hotels
3 Pipeline
26 Hotels
1 Pipeline
29 Hotels
17 Pipeline
LATIN
AMERICA
2 Hotels
GLOBAL
GROWTH
AN INTERNATIONAL
PORTFOLIO OF ~ 100
HOTELS, WITH
GLOBAL
DEVELOPMENT
OPPORTUNITY
SOURCE: STARWOOD INTERNAL
PIPELINE REPORTING AS OF 12/31/12
95
97. WESTIN.
FOR A
BETTER YOU
INSPIRED BY THE ACHIEVER
» One of the
industry’s most
distinctively
positioned and
innovative global
brands, which
perennially
outperforms the
competition
97
98. SLEEP WELL
Heavenly Bed
EAT WELL
SuperFoodsRX
MOVE WELL
WestinWORKOUT
Gear Lending
FEEL WELL
Guestroom
Design
Sensory
Welcome
Heavenly
Bath
Breathe
WORK WELL
Clutter-free
Meetings
Performance
Meeting Chair
PLAY WELL
Westin Kids
Club
Heavenly Spa
CREATING
EXPERIENCES
»Westin provides
innovative programs
and instinctive
services that
transform every
aspect of a guest’s
stay into a revitalizing
experience, so they
leave feeling better
than when they arrived
98
99. GLOBAL
GROWTH
» Expect to open 200th
hotel this year
» 50%+ footprint growth
over the last 12 years
121 HOTELS
16 PIPELINE
10 HOTELS
1 PIPELINE
21 HOTELS
4 PIPELINE
40 HOTELS
25 PIPELINE
SOURCE: STARWOOD INTERNAL
PIPELINE REPORTING AS OF 12/31/12
99
102. SHERATON CLUB
LINK@SHERATON
SHERATON FITNESS
CREATING
EXPERIENCES
» Distinguishing Sheraton globally with distinctive
initiatives
» Sheraton Club
» Link@Sheraton experienced with Microsoft
» Sheraton Fitness programmed by Core Performance
» Continuing to build momentum with new experiences
and revenue-driving initiatives
» Social programming – Sheraton Social Hour
» F&B initiatives – Link@Sheraton Café, Color Your Plate
102
103. Source: Starwood internal pipeline reporting as of 12/31/12
*Global Upscale Hotel Study,
Jan. 2011, Lrw
LEADING
STARWOOD’S
GLOBAL
GROWTH
STARWOOD’S LARGEST
BRAND, WITH LARGEST
PIPELINE WITHIN
STARWOOD
» 90%+ awareness among
upscale hotel guests*
» 76 years
» 427 hotels
» 66 resorts
» 69 countries
» 1st international hotel brand in
China, India & Middle East
» 101 deals in the pipeline
» On track to open 500 hotels
by 2015
EAME
93 HOTELS
26 PIPELINE
NA
207 HOTELS
6 PIPELINE
AP
97 HOTELS
63 PIPELINELA
30 HOTELS
6 PIPELINE
103
106. COFFEE & BREAKFAST BEST BREWS
AUTHENTIC SERVICE GUESTROOM / WORK SPACE
CREATING
EXPERIENCES
» Friendly, authentic
service
» Stylish guestrooms
with comfortable beds
» Local craft beer on tap
» Productive
workspaces
» Free internet &
bottled water
» Great coffee
» Delicious breakfast
106
107. NORTH AMERICA
LATIN AMERICA
EUROPE, AFRICA,
AND MIDDLE EAST
ASIA PACIFIC
112 Open
26 Pipeline
12 Open
3 Pipeline
29 Open
39 Pipeline
18 Open
21 Pipeline
WITH 171
HOTELS OPEN
AND 89 IN THE
PIPELINE,
FOUR POINTS
IS THE
DEFINITION OF
GLOBAL
GROWTH
» 70% change in the portfolio
since 2005, and $1B invested
in renovations, conversions
and new hotels
» The portfolio has increased
by more than 40% in the past
five years
» Conversion-friendly format
fueling continued rapid
growth
» 55% of rooms outside the U.S.
Source: Starwood internal pipeline reporting as of 12/31/12 107
109. URBAN
COOL IN
UNEXPECTED
PLACES
INSPIRED BY SELF-EXPRESSERS
» Redefining the
segment.
Innovative design
combined with
programs &
services that
reflect travelers’
lifestyle
» Designed for the
next generation of
travelers
109
110. FASTEST EVER
LAUNCH OF A
NEW BRAND
» Aloft hotels: Any town,
anywhere.
» Fastest brand launch
ever…17 in 2008, 39 in
2009, 46 in 2010…55 in
2011, 62 in 2012…126
operating + pipeline at end of
2012
» Launched Globally
» Aloft Portland Airport at
Cascade Station and Aloft
Nashville-Cool Springs
named to TripAdvisor’s Top
10 Trendiest Hotels in the
USA
110
111. GLOBAL
GROWTH
WITH 60+ HOTELS IN
10 COUNTRIES, ALOFT
IS READY FOR ANY
TOWN, ANYWHERE
» We bring urban cool to
unexpected places,
with a global appeal
that drives global
growth
NORTH AMERICA
LATIN AMERICA
EUROPE, AFRICA,
AND MIDDLE EAST
ASIA PACIFIC
47 Open
23 Pipeline
2 Open
6 Pipeline
10 Open
21 Pipeline
3 Open
14 Pipeline
Source: Starwood internal pipeline reporting as of 12/31/12
111
113. SPACE
TO LIVE
YOUR LIFEINSPIRED BY HEALTHY ACTIVES
» Natural light.
Open spaces.
Healthy options.
» Outdoor-inspired, vibrant
living and smart, fresh
thinking
» Green without
compromise. No
compromise in comfort,
quality, convenience or
price
113
114. ELEMENT ARUNDEL MILLS, HANOVER, MARYLAND, USA
EXCEEDING
OUR
CUSTOMERS
DEMANDS
» Guest Loyalty Score at 8.55 for
2012, one of the highest ratings
of Starwood brands
» 81% of guests are much more or
somewhat more positively
influenced by Element’s green
initiatives versus the competition
» First major hotel brand to show
its commitment to the
environment by mandating that
every hotel pursue LEED
certification
114
115. ELEMENT HOUSTON, VINTAGE PARK, TEXAS, USA
ELEMENT’S
FOOTPRINT
TODAY
Lexington, MA
Las Vegas Summerlin, NV
Houston Vintage Park, TX
Arundel Mills, MD
Denver Park Meadows, CO
Dallas Ft. Worth Airport North, TX
Ewing Princeton, NJ
New York Times Square West, NY
Omaha Midtown Crossing, NE
Miami International Airport, FL
TOMORROW
Vaughan Southwest, ON, 2013
Harrison, NJ, 2013
Frankfurt, Germany, 2014
Vancouver Metrotown, BC, 2014
Miami Doral, 2015
Flushing, 2015
Muscat, 2016
115
116. THE POWER OF STARWOOD
OPERATIONS
REVENUE
MANAGEMENTSALES
CENTRAL
MARKETING
DELIVERYSPG
BRAND / FIELD
MARKETING
& PARTNERSHIPS
INDIVIDUAL SPIRIT, COLLECTIVE STRENGTH
The Individual Spirit of our Brands Set them Apart
Our Systems, Infrastructure and Global Reach Make them Unstoppable
116
117. STARWOOD DRIVES RESULTS
Starwood Centrally influences 71% of Room Nights
STARWOOD
INFLUENCED
PROPERTY
DIRECT
GLOBAL
DISTRIBUTION
SERVICES (GDS)
DIGITAL
CHANNELS
CUSTOMER CONTACT
CENTERS (CCC)
22%
10%
25%
13%
23%
- Industry leading loyalty program
- 50% occupancy share - elite
benefits drive incremental stays
and stretch for status
- Global sales team directly drives
over $5B in annual revenue
- Suite of processes, programs
management, tools and
resources
SPG
- Distinctive lifestyle hotel brands
- Best in class field marketing
programs
- Comprehensive digital marketing
platform
MARKETING
SALES
SOURCE: 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-time
stays 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 MEMBER
STARWOOD
PREFERRED GUEST
118
119. SPG – THE
BEST LOYALTY
PROGRAM IN
THE BUSINESS
» 54% growth in members
since 2007
» SPG Share of Occupancy
is greater than 50%
» Richest elite tier benefits
»Innovative programming
strengthens member loyalty
AWARD-WINNING
HOTEL
COLLECTION
SPG AMEX
» More luxury
and upscale
hotels than
other programs
» 50+ Gold List
awards
» 70 Travel +
Leisure award
winners
» Multiple “best
travel/affinity
card” awards
UNIQUE REDEMPTION
OPTIONS
» SPG Flights:
Hundreds of
airlines, no
blackouts
» SPG Moments:
Once in a
lifetime
experiences
that members
bid on
» SPG Cash +
Points
RICH PROMOTIONS
» Campaigns
designed to
shift share and
drive
transaction
volume
» iPhone App:
First hotel
loyalty program
to offer
» Social Media:
Presence on
Twitter,
Facebook, etc.
CUTTING EDGE
COMMUNICATIONS
Differentiation Builds Customer Loyalty
119
120. SPG MOMENTS
Clinics with professional athletes
The Fray Exclusive Member After
Party @ The W NY
Premium concert tickets with
LiveNation
VIP tickets and exclusive meet
and greets
120
121. SPG GROWTH – MEMBERS NOW FILL 50% OF
ROOMS
40%
45%
50%
2008 2010 2012
SPG Share of Occupancy
121
122. GLOBAL GROWTH LOCKING IN LOYALTY AHEAD OF
CHANGING TRAVEL PATTERNS
»54% growth in members
since 2007
»47% of SPG members
are from outside the U.S.
»Increased Chinese
member base 64% in
2012
»Consumers gravitate
toward the brands they
know and
trust – our global
presence is
a major advantage
122
123. SPG MEMBERS
ARE VALUABLE
» ADR Premium $38 (25%)
» Incidental F&B spend of
$11 (34%)
» Platinum SPG members are
26x as profitable as non-
members
» Ambassador SPG members
are 44x as profitable as
non-members
» Enrolled members are 3x
more likely to return to our
hotels the following year
» Members are more resilient
in a downturn
Source: SPG internal data, Dec 2012
3.2%
15.8%
-9.3%
6.2%
-20%
-10%
0%
10%
20%
2009 2010
SPG Nights Non-SPG Nights
RESILIENCE DURING THE DOWNTURN
123
125. FIELD MARKETING:
STARWOOD’S
INTERNAL
MARKETING
AGENCY
» Starwood’s internal marketing agency
provides localized support dedicated
to individual hotel business needs
» Mobilizes internal and external
marketing channels against short-
term need periods
» Currently, 94% of the Starwood
hotels in North America participate in
this opt in program
» Delivers on average $25 for every $1
spent on investment for participating
hotels
125
126. THE POWER OF GLOBAL PARTNERS
LIFESTYLE &
ENTERTAINMENT
TRAVEL SPORTS & FITNESSFINANCIAL PARTNERS FOOD & BEVERAGE RETAIL
126
128. ROBUST
BRANDED
WEBSITES
» Fifteen deep interactive
websites in nine
languages bring brands
and hotels to life
» Advanced reservation
capability
» Intelligent merchandising
to maximize awareness
and increase conversion
» Industry-leading customer
service
128
129. SOCIAL MEDIA
FOSTERS
RELATIONSHIPS
WITH GUESTS
» Over 3.7M fans across leading
social platforms around the world
» Industry-leading presence with
Facebook pages for every brand
and hotel, over 1,100 in all
» Deep integration with Foursquare
and Jeipang
» Presence on Twitter and Weibo
» Ratings & Reviews meets key
guest need and improves
conversion
» Global social monitoring 24/7
129
130. MOBILE IS
FASTEST-
GROWING
PLATFORM
» Acclaimed iOS App
» Integrated Booking capability
» Robust hotel and resort
content
» Personalized support
» State-aware functionality
» Mobile web platform delivers
branded experience and
supports reservations
on all devices
130
131. CUSTOMER
CONTACT
CENTERS LEAD
WITH INNOVATIVE
SOLUTIONS
» Flexible platforms available 24/7 in
24 languages to drive revenue and
guest satisfaction
» Voice, chat, e-mail, social, Facetime
video and other emerging platforms
» Global presence supports
objectives across distribution,
loyalty, sales, revenue
management and more
131
133. 70% OF STARWOOD’S
ROOM REVENUE
COMES FROM B2B
CHANNELS
» More than our fair share of high-value/
high-volume customers’ business across
all corporate and leisure segments
» Structured the way our clients buy with
greater scale of coverage and
deeper reach
» Established organization in mature and
growth markets, set up to capitalize on
new travel landscape and globalization –
revenue up 12% YOY
» Innovative programming focused on
driving new business and strengthening
customer loyalty
133
134. SELLING THE WAY
OUR CUSTOMERS
BUY, LEADING TO
INCREASED
SHARE
» 5,000+ sellers deployed
against customers’ teams and
buying patterns
» Global
» Divisional
» Cluster (metro-market)
» Property
» Global reach with local
expertise allowing for
personal solutions, increased
customer loyalty, and
incremental growth
» Seamless and flexible
experience at every point in
the selling process
134
135. GROWING
WITH OUR
CUSTOMERS
AND PORTFOLIO
» Adding resources in
key markets, including
BRIC, Eastern Europe,
South Africa and more
» Driving business
across borders:
» Over 50% of business
from our largest
multinational customers
occurs outside their
home regions
135
137. ANALYTICS TRAINING AND COMMUNICATION
TOOLS AND PRODUCTS GLOBAL TECHNOLOGY INITIATIVE
REVENUE
MANAGEMENT
» Multi-million
investment in cutting-
edge revenue
management
technology
» Implementation of
effective pricing and
inventory strategies
» Corporate, divisional,
regional and area-
based RM experts
work directly with the
hotels
» Tools and detailed
analytics, including
market share analysis
137
138. NEW BUILDS AND TRANSITIONS TRANING AND SERVICE CULTURE
LEAN HOTEL OPERATIONS ARCHITECTURE AND ENGINEERING
Closet
Bed
Bed
Bath-
room
TV
Desk
CartHallway
Coffee/
Glass
OPERATIONAL
EXCELLENCE
» Architecture and
engineering support
» Focus on strong
openings with
operational planning,
support and supervision
» Lean Operations
» Centralized staffing,
performance
management and
benefits administration
» Tools, technology,
strategy and detailed
analytics / reporting
138
139. BRANDED CONCEPTS & PROGRAMS TALENT DEVELOPMENT
REVENUE GROWTH COST CONTAINMENT
FOOD &
BEVERAGE
» $4.5 billion in annual
revenue (over 30% of total
hotel revenue) at
company-operated hotels
» 3,500 restaurants and
bars systemwide
» Enhanced procurement,
optimized pricing and
innovative formats and
partnerships
» Large potential source of
incremental revenue and
profits for our properties
» Dedicated F&B team &
support structure for hotels
139
140. UNLOCKING POTENTIAL IN OUR COMMUNITIES [DIVISIONAL INSERT]
ENVIRONMENTAL COMMITMENT – 30/20 by 20 DIFFERENTIATORS WITH IMPACT
SUSTAINABILITY
& GLOBAL
CITIZENSHIP
» 30% energy reduction
target and 20% water
reduction target by 2020
» Deliver programs and
tools to manage energy
and water consumption
» Guidance, programming
and coordination of
community involvement /
philanthropic work
(UNICEF, Conservation
International)
140
143. The Starwood Transformation
17%
Owning Hotels Owning Relationships
STARWOOD 2000
Fees
62%
80%
Fees
Fees
Owned/
SVO/Other
TRANSFORMING 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 billion
to shareholders
STARWOOD 2012 2016 TARGET
Note: Percentages represent Earnings before selling, general and administrative expenses and exclude earnings from Bal Harbour
Fee earnings represents Management fees, Franchise fee and Other Income
Owned/
SVO/Other
Owned/
SVO/Other
143
144. The Starwood Transformation
37%
63%
U.S Centric Global Enterprise
STARWOOD 2000
Non 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 $250M
STARWOOD 2012 TARGET
Note: Percentages represent hotel fee business; pro forma for implied fee on owned hotel gross operating revenue
U.S.
Non U.S.U.S. Non U.S.
U.S.
144
145. The Starwood Transformation
Price 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
» Haven
Starwood Preferred Guest
Transformation
2012
Launch of W
1998
Westin “Heavenly” Launch
1999
Sheraton Revitalization
2007
Launch of Aloft and Element
2008
Global Expansion
of W
2009
Crossover Rewards
2013
TRACK RECORD OF INNOVATION
145
146. Results
The Starwood Transformation
»Higher Growth Trajectory
»Lower Cyclicality
»Higher Margins
»Higher Capital Efficiency
»Significant Cash Generation
Superior Shareholder Value Creation
146
147. The Starwood Transformation
S&P
98%
MAR
164%
HOT
256%
10-Year Total Shareholder Return
Superior Shareholder Value Creation
Source: 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 Investment
Proposition
» 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 Potential
LE ROYAL MERIDIEN ABU DHABI
SHERATON ABU DHABI HOTEL & RESORT
148
149. The Most Global Hotel Company
As of 31-Dec-12
1,134 Properties and 335,415 Rooms in Nearly 100 Countries
LEADING HOTEL COMPANY IN HIGH GROWTH MARKETS
U.S.
47%
Starwood
U.S.
78%
Hilton
U.S.
69%
Hyatt
U.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 Platform
As of 31-Dec-12
U.S.
44%
Fees by Brand Fees by Region
LEADING HOTEL COMPANY IN HIGH GROWTH MARKETS
Upper Upscale: Westin, Sheraton, Le Méridien
Luxury: W Hotels, St. Regis, Luxury Collection
Select Serve: Aloft, Element, Four Points
Greater China Asia Europe
Africa / Middle East Latin America / Canada
150
151. Leadership in High Growth Markets
36 20 9 9
HOT MAR HLT H
31 18 18 15
HOT MAR HLT H
GREATER CHINA
21 11 16
5
HOT MAR HLT H
MIDDLE EAST / AFRICAASIA (EX GREATER CHINA)
13 9
6 3
HOT MAR HLT H
LATIN AMERICA
Rooms(000s)
Sources: Smith Travel Research as of December 2012, company data
41
102
104
155
H
MAR
HLT
HOT
Non-U.S. Operating Luxury / Upper Upscale Rooms (in 000s)
LEADING HOTEL COMPANY IN HIGH GROWTH MARKETS
151
152. The World is Changing in our Favor
2011–2030
CAGR
5%
3%
5%
3%Europe
Asia Pacific
Americas
Africa Middle
East
200
400
600
800
1,000
1,200
1,400
1,600
1,800
1990 1995 2000 2005 2010 2015 2020 2025 2030
Numberof
TouristArrivals
(inmillions)
TOURIST ARRIVALS BY ORIGIN
» Our global footprint positions
us to take advantage of
changing global travel
patterns
» 3 billion people entering the
global economy
» Regional travel patterns
are evolving
» Enormous outbound travel
opportunity from Growth
Markets
» Rise of the “Mega Traveler”
Source: World Tourism Organization UNWTO Tourism Highlights 2012 Edition; UNWTO “Tourism towards 2030”
LEADING HOTEL COMPANY IN HIGH GROWTH MARKETS
152
153. Americas Division
» Joined Starwood through
Vistana Resorts in 1989
» Co-President of Americas
Sergio Rivera Osvaldo Librizzi
» Joined Starwood in 1975 at
the Sheraton Buenos Aires
» Co-President of Americas
LEADING HOTEL COMPANY IN HIGH GROWTH MARKETS
Current Pipeline implies growth of +10%
St. Regis
Luxury
Collection
W Le Méridien Westin Sheraton
Four Points
by Sheraton
Aloft Element Other
Total
Operating
United States
Hotels 10 13 26 8 102 186 87 45 10 3 490
Rooms 2,294 3,912 8,245 2,113 44,538 69,113 13,814 6,607 1,641 561 152,838
Latin America & Canada
Hotels 4 10 4 5 29 51 37 4 - - 144
Rooms 558 719 742 628 10,087 17,621 5,682 559 - - 36,596
As of 31-Dec-12 153
154. Asia Pacific Division
Stephen Ho
» Joined Starwood at Sheraton
Brunei in 1981
» President of Asia Pacific
LEADING HOTEL COMPANY IN HIGH GROWTH MARKETS
Current Pipeline implies growth of +78%
Qian Jin
St. Regis
Luxury
Collection
W Le Méridien Westin Sheraton
Four Points
by Sheraton
Aloft Element Other
Total
Operating
China
Hotels 5 4 1 7 15 55 17 5 - - 109
Rooms 1,380 811 392 2,535 5,341 22,715 5,293 1,023 - - 39,490
Asia
Hotels 4 17 7 22 25 42 12 5 - - 134
Rooms 812 4,270 1,520 5,487 7,788 14,634 2,958 860 - - 38,329
» Joined Starwood at Sheraton
Shanghai in 1986
» President of Greater China
As of 31-Dec-12 154
155. Europe, Africa and the Middle East (EAME)
» Joined Starwood at
Sheraton Brussels in 1982
» President of EAME since
Guido de Wilde Hassan Ahdab
» Joined Le Méridien in 1977
» Vice-President, Regional
Director of Operations,
Africa & Indian Ocean
» Joined Sheraton in 1983
in Belgium and relocated
to Bahrain in 1984
» SVP, Regional Director –
Middle East
LEADING HOTEL COMPANY IN HIGH GROWTH MARKETS
Current Pipeline implies growth of +36%
Roeland Vos
St. Regis
Luxury
Collection
W Le Méridien Westin Sheraton
Four Points
by Sheraton
Aloft Element Other
Total
Operating
Europe
Hotels 4 36 5 26 18 61 11 2 - 1 164
Rooms 484 5,270 1,029 7,630 5,923 16,913 1,848 402 - 165 39,664
Africa & Middle East
Hotels 3 5 1 28 3 32 7 1 - - 80
Rooms 885 1,384 441 6,954 949 8,788 1,329 408 - - 21,138
As of 31-Dec-12 155
156. AL MAHA DESERT RESORT & SPA, DUBAI
ALOFT ABU DHABI
The Starwood Investment
Proposition
» 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 Potential
156
157. Best Global High End Lodging Brands
Source: 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 and
not intended to indicate any affiliation, association, or endorsement.
BEST GLOBAL LODGING BRANDS
35K
59%
Luxury
Starwood
UpperUpscale
% Rooms
Outside
U.S.
251K
54%
Marriott
50K
52%
Hilton
18K
51%
Hyatt
29K
64%
249K
31%
245K
39%
74K
30%
% Rooms
Outside
U.S.
157
158. Fastest Growing Luxury Brand Portfolio
BEST GLOBAL LODGING BRANDS
Starwood 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
-
10
20
30
40
50
60
2007 2012
-
10
20
30
40
50
60
2007 2012
HOT Luxury Brands
Rooms(000s)
-
10
20
30
40
50
60
2007 2012
Rooms(000s)
Rooms(000s)
Four Seasons MAR Luxury Brands
Source: Smith Travel Research, Luxury Hotel Rooms. 2007 MAR pro forma for JW Marriott
+ 92%
+ 18%
+ 32%
158
159. Largest Global Portfolio of Upper-Upscale Brands
BEST GLOBAL LODGING BRANDS
Starwood Upper-Upscale Brands
» 250K Upper-Upscale Rooms globally in
89 countries
» Sheraton: Leading Global five-star brand,
with more rooms outside the U.S. and
Europe than any other competitor
» Westin: Top North American Upper-
Upscale brand expanding rapidly outside
the U.S.
» Le Méridien: With deep roots in Europe,
Africa and the Middle East, re-energized
into a unique and compelling global
brand since 2007
240
245
250
HOT Upper
Upscale
Hilton Upper
Upscale
MAR Upper
Upscale
2012
Rooms(000s)
Source: Smith Travel Research, Upper Upscale Hotel Rooms 159
160. Differentiated Select Serve Brands Growing Globally
0
5
10
15
20
25
30
35
40
45
50
2007 2012
Four Points Aloft
Rooms(000s)
Starwood Select Serve Brands
» Rooms have almost doubled globally
since 2007
» Four Points by Sheraton has experienced
dramatic non-U.S. growth and already
has 55% of rooms outside the U.S.
» Aloft, a highly differentiated select serve
brand, has grown to 62 hotels since its
launch in 2007 with 33% of rooms outside
the U.S.
BEST GLOBAL LODGING BRANDS
As of 31-Dec-12 160
161. LE MÉRIDIEN MINA SEYAHI
BEACH RESORT & MARINA
GROSVENOR HOUSE
The Starwood Investment
Proposition
» 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 Potential
161
162. High Quality 100K room (400 hotel) global pipeline
Sources: Smith Travel Research Pipeline reports: Total Pipeline, company data
HIGH QUALITY GLOBAL PIPELINE AND GROWTH OPPORTUNITY
87%
76%
60%
47%
Starwood
Hyatt
Hilton
Marriott
Outside of U.S. (% of Pipeline)
67%
66%
37%
36%
Starwood
Hyatt
Marriott
Hilton
Upper Upscale / Lux (% of Pipeline)
162
163. Well Positioned to take advantage of Global Growth
Sources: 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 I
Greater China Asia (excluding
Greater China)
U.S. Europe Latin America &
Canada
Africa / Middle East
HIGH QUALITY GLOBAL PIPELINE AND GROWTH OPPORTUNITY
% of 5-year Global GDP Growth % of Starwood Room Pipeline
163
164. Global Growth fueled by all Nine Brands
HIGH QUALITY GLOBAL PIPELINE AND GROWTH OPPORTUNITY
0
5
10
15
20
25
30
35
Sheraton Four Points by
Sheraton
Westin Aloft W Le Meridien St. Regis Luxury Collection Element
Pipeline by Brand
U.S. Greater China Asia ex China Europe Africa/ Middle East Latin America/ Canada
Rooms(000s)
As of 31-Dec-12 164
165. 10-year track record of 5% Net Rooms Growth
100
200
300
400
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013E
5% Net Rooms Growth
Operating
Rooms
HIGH QUALITY GLOBAL PIPELINE AND GROWTH OPPORTUNITY
165
166. FOUR POINTS BY SHERATON SHEIKH
ZAYED ROAD, DUBAI
FOUR POINTS BY SHERATON
DOWNTOWN DUBAI
The Starwood Investment
Proposition
» 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 Potential
166
167. High Value Global Owned Hotel Portfolio
HIGH VALUE GLOBAL OWNED PORTFOLIO
25 TOP OWNED/LEASED HOTELS
(~90% OWNED/LEASED EARNINGS)
U.S. / Canada
Asia 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 Montreal
Based on Projected 2013 Earnings 167
168. Well Diversified
Globally
ST. REGIS BAL HARBOUR
WESTIN EXCELSIOR, ROME
BY DIVISION
HIGH VALUE GLOBAL OWNED PORTFOLIO
Europe
Asia
U.S.
Based on 2012 owned earnings assuming Owned hotel set as of January 31st, 2013
Latin America
/ Canada
168
169. ST. REGIS NEW YORK
HOTEL GRITTI PALACE, VENICE
BY PROPERTY TYPE
HIGH VALUE GLOBAL OWNED PORTFOLIO
Based on 2012 owned earnings assuming Owned hotel set as of January 31st, 2013
Convention
Resort
Urban
Airport
In High Barrier to
Entry Urban and
Resort Markets
169
170. Unlocking Value from Asset Sales
STARWOOD 3-YEAR OUTLOOK
$275k/room = $4.8B
$300k/room = $5.2B
$325k/room = $5.6B
$/Room
14x = $4.4B
15x = $4.7B
16x = $5.0B
Adj. Earnings Multiple
To estimate cash proceeds, valuations will need to be adjusted for leases (20% of rooms), capital needs for certain hotels and any cash taxes
on gains. Actual proceeds may vary depending on market conditions.
HIGH LEVEL VALUATION SCENARIOS
Owned Rooms ~14,800
Leased Rooms ~2,500
Note: 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 Assets
KEY UNCONSOLIDATED JOINT VENTURES
(>85% UJV EBITDA)
Asia Pacific North America
Latin America
Non-EBITDA Producing Assets
UJV Rooms ~8,485
UJV EBITDA (HOT share) ~$70M
Hotel Rooms Ownership
St. 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 Ownership
St. Regis Punta Mita 120 40%
W Mexico City 237 50%
Hotel Rooms Ownership
Sheraton New Orleans Hotel 1,110 47%
Sheraton Seattle Hotel 1,258 22%
Westin Savannah 403 49%
Westin Bellevue 337 17%
Land Holdings
Sardinia Atlanta Buckhead
Maui, HI Avon, CO
Orlando, FL Aruba, NA
STARWOOD 3-YEAR OUTLOOK
171
172. LE MERIDIEN DUBAI
LE ROYAL MERIDIEN ABU DHABI
The Starwood Investment
Proposition
» 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 Potential
172
173. Global Infrastructure – the Power of Starwood
INDIVIDUAL SPIRIT, COLLECTIVE STRENGTH
OPERATIONS
REVENUE
MANAGEMENTSALES
Central
Marketing
Delivery
SPG &
PARTNERSHIPS
BRAND / FIELD
MARKETING
& PR
UNMATCHED GLOBAL PLATFORM
173
174. SPG &
PARTNERSHIPS
BRAND / FIELD
MARKETING
& PR
CENTRAL
MARKETING
DELIVERY
Global Infrastructure - Capabilities
UNMATCHED 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 hotel
business needs
» Currently 94% of Starwood hotels in North America opt into program
» Delivers on average $25 for every $1 spent on investment for participating hotels
174
175. Global Infrastructure - Capabilities
SALES
REVENUE
MANAGEMENT
OPERATIONS
UNMATCHED 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 2020
175
177. THE WESTIN ABU DHABI
GOLF RESORT & SPA
SHERATON DUBAI CREEK
HOTEL & TOWERS
The Starwood Investment
Proposition
» 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 Potential
177
178. Cash From Hotel Operations
EXTRAORDINARY CASH GENERATION POTENTIAL
Note: Excludes cash from Timeshare and Bal Harbour
$815
$531
$596
$694
$738
2008 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
$417
2008 2009 2010 2011 2012
Hotel Earnings – Includes Owned, Fees and Other
Earnings less SG&A and Gain Amortization
Capital – Includes Maintenance and Development Capital
178
179. Cash from Timeshare Operations & Bal Harbour
EXTRAORDINARY CASH GENERATION POTENTIAL
($150)
$275
$182 $150 $177
2008 2009 2010 2011 2012
($133)
($68)
($127)
($29)
$461
2008 2009 2010 2011 2012
Timeshare – Net Cash Bal Harbour – Net Cash
Net Cash Flow – Includes all timeshare cash receipts and
expenses, securitization proceeds, capital and SPG point cost
Net Cash Flow – Includes cash from closings, construction capital (both
residential and hotel), S&M expenses and developer liability costs
179
180. Cash from Asset Sales
$238M
$148M
$312M
$548M
$1.25B
2009 2010 2011 2012 Total 2009-12
# of Transactions
Price / Room
AEBITDA Multiple
Multiple w/ CAPEX
7
$162K
14x
24x
2
$298K
28x
28x
3
$177K
13x
14x
5
$317K*
17x
19x
17
$228K
16x
19x
»$1.25B of Cash Proceeds (gross) generated since 2009 (Avg. Multiple over 16X)
»Buyers have invested heavily in hotels (St. Regis Aspen, Westin Gaslamp, W
Lakeshore, Le Méridien Perimeter)
EXTRAORDINARY CASH GENERATION POTENTIAL
* Excludes Poconos 180
181. $913
$771
Extraordinary Cash Generation
Net Debt Reduction of $2.4B since 2008 Returned $1.7B to Shareholders since 2008
Share Buybacks
Dividends
EXTRAORDINARY CASH GENERATION POTENTIAL
$3,248
$3,523
$2,826
$2,051
$1,511
$811
1/1
2008
1/1
2009
1/1
2010
1/1
2011
1/1
2012
1/1
2013
Note: Net debt consists of Long-term debt and short term debt, net of cash equivalents and restricted cash 181
182. LE MÉRIDIEN MINA SEYAHI
BEACH RESORT & MARINA
THE WESTIN DUBAI MINA SEYAHI
BEACH RESORT & MARINA
The Starwood Investment
Proposition
» 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 Potential
182
184. Source: International Monetary Fund, UNWTO World Tourism Organization
Secular Demand Gains in Growth Markets
STARWOOD 3-YEAR OUTLOOK
GLOBAL GDP
2012 2020
GLOBAL TRAVEL
2000 2012 2020
2000
Growth
Markets
Mature
Markets
Growth
Markets
Mature
Markets
Growth
Markets
Mature
Markets
Growth
Markets
Mature
Markets
Growth
Markets
Mature
Markets
Growth
Markets
Mature
Markets
184
185. Best Growth Markets Platform in Lodging
STARWOOD 3-YEAR OUTLOOK
FEES PIPELINEROOMS
Mature
Growth
(32%)
Mature
Growth
(35%)
Mature
Growth
(80%)
Greater China India / Emerging Asia Emerging Europe / AME Latin America
As of 31-Dec-12 185
187. 2.7%
3.2%
2.0%
0.6% 0.5%
2008 2009 2010 2011 2012 2013 E
U.S. SUPPLY GROWTH (%)
BY YEAR
Low Supply Growth Supports Recovery
Source: Smith Travel Research, PWC
Europe Supply Growth over next 3 Years = <1%
STARWOOD 3-YEAR OUTLOOK
21%
25%
21%
13%
1970s 1980s 1990s 2000s
U.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
$159
2004 2005 2006 2007 2008 2009 2010 2011 2012
$176 (11%)2008 Peak ADR in “Real” terms
Rates will drive Next Leg of RevPAR Growth
STARWOOD 3-YEAR OUTLOOK
Source: STR. U.S. Luxury, Upper-Upscale and Upper Tier Independents
Occupancy % ADR ($)
U.S. Luxury / Upper Upscale
188
189. Growth
Well Balanced Mature Markets Business
FEES INCENTIVE FEESOWNED/LEASED EARNINGS
BASE FEES
Franchise
Incentive
Base Mgmt
Growth
Mature
(75%)
Growth
Mature
(85%)
Note: Earnings represents Owned/Leased hotel operating revenue less operating expenses
STARWOOD 3-YEAR OUTLOOK
U.S.
37%
Asia Europe Canada
2012
($M’s)
% of Hotels
Paying Fees
$50M 31%
$128M 81%
Mature
Growth
MATURE
Mature
189
191. Indicative Management Contract Structures
U.S. Non-U.S.
Base Fee (% GOR) ~3-4% ~2-3%
Incentive Fee
~10-12% of “Incentive Income,”
Often NOI after an Owner priority
return that is typically 8-10% of
invested capital
~8-10% of (typically) GOP after
Base Fee; No Owner priority return
Term
~20-40 years
Limited Owner rights to terminate
(e.g. on sale of property) or convert
to franchise
~20-40 years
Early Owner termination right is
rare
Expanding Margins Driving Incentive Fee Growth
STARWOOD 3-YEAR OUTLOOK
» GOP Margins have
expanded 270 bps since
2009 with incentive fee
growth of 46%
» ~60% of same store
managed properties
worldwide pay incentive
fees
» ~76% of same store
managed properties in
international markets pay
incentive fees
191
192. $280
$540
2012 2017 Target
19%
26%
2012 2017 Target
EARNINGS ($M)
» RevPAR CAGR 6%
» ADR CAGR 5%
» Margin gains of ~130 bps / year
» Global Revenue Management
» Lean Operations
» Food and Beverage
Key Assumptions
CAGR:
+14%
MARGIN
+7 pts
RevPAR
$0
$10
$20
$30
$40
$50
$60
$70
$80
Note: 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 Hotels
STARWOOD 3-YEAR OUTLOOK
Key Initiatives
Current Owned / Leased Hotel Set
192
194. Key Assumptions
Global Outlook
» Normal cyclical recovery
in Mature Markets
» Continued rapid growth in
Growth Markets
» Modest increase in
interest rates
» Constant foreign
exchange rates at current
levels
Macro
» No additional hotel sales
included (adjustments in
the future if/when
hotels sold)
» No share repurchases
assumed
» Bal Harbour included in
cash flow (excluded from
EBITDA)
» Focus on share gain and
cost control in the hotel
business
» Manage Timeshare
business for cash
generation
» Sell-out Bal Harbour by
the end of 2013
» Continue tight SG&A
control
Operational Financial
STARWOOD 3-YEAR OUTLOOK
194
195. What Could Disrupt a Normal Cyclical Recovery?
Starwood Outlook
MACRO-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 issues
GEO-POLITICAL RISKS
» Syria / Egypt / Iran
» Afghanistan / Pakistan
» North Korea
STARWOOD 3-YEAR OUTLOOK
195
196. Starwood 3-Year Outlook
CAGRs 2012 - 2015
Starwood 3-Year Outlook
RevPAR Growth = 5 to 7%
EBITDA Growth = 10 to 12%
EPS Growth = 16 to 20%
STARWOOD 3-YEAR OUTLOOK
196
197. Owned / Leased Hotels 3-Year Outlook
CAGRs 2012 - 2015
Starwood 3-Year Outlook
RevPAR Growth = 4 to 7%
Margin Improvement = +200 to +400 bps
Earnings Growth = 10 to 14%
+/-1% RevPAR CAGR =
+/-$20-25M Owned/Leased Earnings through 2015
Note: Earnings represents Owned/Leased operating revenue less operating expenses.
STARWOOD 3-YEAR OUTLOOK
197
198. Managed and Franchised Hotels 3-Year Outlook
CAGRs 2012 - 2015
Starwood 3-Year Outlook
+/-1% RevPAR CAGR =
+/- $20-25M Management & Franchise Fees through 2015
RevPAR 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 Growth
STARWOOD 3-YEAR OUTLOOK
198
199. Vacation Ownership / Residential 3-Year Outlook
(CAGRs 2012 – 2015, unless otherwise noted)
Starwood 3-Year Outlook
Note: Earnings represents VOI operating revenue less VOI operating expenses.
Originated Sales Growth = Flat
Operating Income Growth = Flat
Timeshare 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 OUTLOOK
199
200. 3-Year Outlook: Sources of Growth
Starwood 3-Year Outlook
Note: EBITDA and EPS before special items
2012 2015
PRO-FORMA EPS
2012 OWNED M&F SVO / NET 2015
PRO-FORMA HOTELS FEES RESIDENTIAL SG&A EBITDA
Tax 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
-
$3.60
CAGR:
16% - 20%
STARWOOD 3-YEAR OUTLOOK
200
201. Significant Cash Generation Potential
(all figures cumulative, $ in millions)
Starwood 3-Year Outlook
~$2B
- =
+
Asset Sales
Cash available to:
» Fund growth
» Return to shareholders
3YearCashFlowsfrom
2012 Ending
“Excess” Cash
~$300M
Owned Hotels
$1,050M
To
$1,150M
Fee Business
$3,100M
to
$3,200M
SVO / Bal
Harbour
$550M
to
$600M
=
3YearCashFlows
SG&A Expense
($1,200M)
To
($1,250M)
Owned Hotel
and IT Capital
($1,150M)
to
($1,200M)
Tax and Interest
Expense
($700M)
to
($750M)
Sources Uses 3 Year Cash Flow
Balance 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 $3.3B
STARWOOD 3-YEAR OUTLOOK
201
202. Achieving 80/20 Asset Light goal by 2016 = ~$3B in Cash
North America
» Improving industry operating fundamentals
» Low Supply increases
» Foreign and PE equity capital re-emerging
» REITs with access to capital
Europe
» Significant interest for gateway markets
» Interest from Middle East and Asia
Latin America
» Mexican GDP accelerating
» Global investor interest in Brazil
Asia
» Australia: hub for cross-border capital
» Emergence of REITs in certain markets
Transaction Outlook Disposition Alternatives
STARWOOD 3-YEAR OUTLOOK
Individual Asset Sales
Portfolio Sale
» Small (< 3 assets)
» Large ($750M+)
Joint Venture
» Private Equity
» REIT
» Institutional Investor / SWF
REIT Spin-Off
» HOT sponsored spin-off (public or non-traded REIT)
» Contribute all / a portion of assets in exchange for share
and cash (public)
202
203. Use of “Capacity” – $3.0B to $3.3B + Cash from Asset Sales
Starwood 3-Year Outlook
» Support Pipeline Growth
– Joint Ventures
– Financing
– Opportunistic Hotel Acquisitions
» Strategic Brand Acquisitions
– Expand current footprint
– Acquire additional regional or global
scale
Fund Growth
» Pay Dividends
– 2012 Dividend: +150%; 2% yield
– Increase payout as EPS grows
» Buy Back Stock
– Offset Share Dilution
– EPS Accretion
– Below intrinsic value
Return Cash to Shareholders
STARWOOD 3-YEAR OUTLOOK
203
205. The Starwood Transformation
Summary
Owning Hotels Owning Relationships
U.S.-Centric Global Enterprise
Price Point Segmentation Lifestyle Segmentation
» Higher growth trajectory
» Lower cyclicality
» Higher margin
» Higher capital efficiency
» Significant cash generation
» Superior shareholder value creation
IN SUMMARY
205
206. The Starwood Investment Proposition
Summary
»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 Potential
IN SUMMARY
206
207. Starwood Outlook
Summary
»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 timeshare
IN SUMMARY
207
208. Starwood 3-Year Outlook
Summary
»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 ~$3B in cash
»Significant capacity to fund growth investments and return cash to shareholders over
next three years
IN SUMMARY
208
209. Same Store Owned, Leased and Consolidated Joint Venture Hotels Worldwide 2009 2012
Revenue
Same store Owned, Leased and Consolidated Joint Venture Hotels 1,386$ 1,252$
Hotels sold, closed or without comparable results 198 446
Total Owned, Leased and Consolidated Joint Venture Hotels Revenue 1,584$ 1,698$
Costs and Expenses
Same store Owned, Leased and Consolidated Joint Venture Hotels 1,136$ 993$
Hotels sold, closed or without comparable results 179 398
Total Owned, Leased and Consolidated Joint Venture Hotels Costs and Expenses 1,315$ 1,391$
December 31,
Twelve Months Ended
STARWOOD 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) $ 409
182 - 182
128 (128) -
234 (55) 179
256 (11) 245
28 - 28
1,390 (347) 1,043
21 (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 Ended
December 31, 2012
Income tax (benefit) expense(c)
As Reported
Pro Forma
As Adjusted
Reconciliation of Net Income (Loss) to EBITDA and Adjusted
EBITDA
Net income (loss)(a)
Interest expense
Loss on early extinguishment of debt, net(b)
Pro Forma
Adjustments
Unusual and one-time items not expected to occur in a normalized year.
Depreciation(d)
Amortization
EBITDA
(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 EBITDA
The reduction in net income reflects the adjustments noted below to normalize the 2012 year. This includes eliminating $157 million of
earnings 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 operating
income from hotels sold during 2012.
Includes an $11 million benefit from reduced depreciation associated with hotels sold during 2012.
211. Twelve Months Ended
Unconsolidated Joint Ventures December 31, 2012
Equity Earnings from Unconsolidated Joint Ventures 25$
Depreciation and amortization from Unconsolidated Joint Ventures 32
Interest Expense from Unconsolidated Joint Ventures 10
EBITDA 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 Case
Year Ended
December 31, 2015
Net income $ 640
Interest expense 120
Income tax expense 288
Depreciation and amortization 322
EBITDA 1,370
(Gain) loss on asset dispositions and impairments, net -
Discontinued operations (gain) loss on dispositions -
Adjusted EBITDA $ 1,370
Year Ended
December 31, 2015
Income from continuing operations before special items $ 640
EPS before special items $ 3.25
Special Items
Gain (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 $ 640
EPS including special items $ 3.25
High Case
Year Ended
December 31, 2015
Net income $ 709
Interest expense 110
Income tax expense 319
Depreciation and amortization 312
EBITDA 1,450
(Gain) loss on asset dispositions and impairments, net -
Discontinued operations (gain) loss on dispositions -
Adjusted EBITDA $ 1,450
Year Ended
December 31, 2015
Income from continuing operations before special items $ 709
EPS before special items $ 3.60
Special Items
Gain (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 $ 709
EPS including special items $ 3.60