1. travel
2. hotels

Company profile :
Starwood
Hotels & Resorts
Worldwide Inc.
FY 2010
Starwood vs. its Main Competitors
Pipeline
Network
EMEA
APAC
13%
19%
Americas
68%
In ‘000
rooms
Vs
end 2009
205
-3%
138
+6%
105
+5%
103
-5%
101
0%
495
85
0%
302
51
-24%
Pipeline
In ‘000
rooms
647
208 Kr
(1)
83%
613
8%7%
85%
605
10% 4%
~600
86%
1st
56%
16%
Worldwide excluding the US
28%
507
Rooms pipeline
as of end of year, 2010
Rooms network
as of end of year, 2010
(2)
8% 9%
366Kr
7%5%
20%19%
88%
61%
(1) Hilton geographical breakdown based on 2009 figures
NB: Figures include traditional lodging and extended stay units but exclude timeshare products
Starwood 7th global player
in the hospitality business
Source
: Companies annual reports except for Hilton network, Accor internal data
2
(2) Hilton pipeline based on an internal press release, January 2011
Starwood has the 6th pipeline worldwide,
stable compared to 2009
3
1.
Company overview
Slide 4
2.
Company organization
Slide 5
3.
Brand positioning
Slide 6
4.
Geographical breakdown
Slide 7
5.
Room portfolio
Slide 8
6.
Operating mode
Slide 9
7.
Group strategy
Slide 11
8.
Pipeline and lodging development
Slide 13
9.
Key figures
Slide 14
10.
SWOT analysis
Slide 17
11.
Company history
Slide 18
12.
Brands description
Slide 19
13.
Accor + Starwood
Slide 19
# hotels
Mid-Lux
1,027
301,736
ADR
Revpar
OR
1. Company overview
# rooms
segment
66.6%
160.0$
Description
106.6$
Ownership
– 7th global player in the hospitality business with 308,736 r.
–
–
–
–
1,041 hotels, including 14 vacation ownerships
9 main brands, mostly upper-upscale and luxury segments
145,000 employees
American company
– Funded in 1969, Starwood is present in 3 main segments
– Traditional lodging industry (from midscale to luxury)
– Extended stay segment
– Timeshare segment
Owners
Stake
Float
100,0%
Waddell & Reed Financial Inc
T. Rowe Price Associates
Fidelity Management & Research
10,1%
7,1%
5,1%
– Worldwide location
– But concentration in North America (53% of room network)
– Few hotels in South America (6%)
Financials
Main figures
2009
2010E
2011E
2012E
4 696
5 071
5 229
5 768
8,0%
3,1%
10,3%
793
879
997
1 160
Operating type
Geographical breakdown
Financials (M$)
Revenue
% Change in Revenue
EBITDA
EBITDA margin
16,9%
17,3%
19,1%
20,1%
Net Profit (pre excep)
188
237
321
444
Net margin
4,0%
4,7%
6,1%
7,7%
2% 7%
APAC
20%
39%
52%
60%
Market Data (M$)
11 370
Market Cap
Americas
Network
Hotels
Rooms
992
298 522
Source: Reuters, as of March 7, 2011
4
1,041
308 700
O&L
Franchise
Management
Timeshare
20%
EMEA
2. Company organization
Full & limited service
segment
5
Extended stay
segment
Timeshare
segment
3. Brand positioning & strategy (1/2)
19 h.
High-end luxury
76 h.
Authentic Luxury
Bespoke services
Unique / Local
Group of hotels
38 h.
Price segmentation
Trendsetter
Design / Innovation
Upper upscale
Upscale
176 h.
100 h.
Bus. & Leisure
Comfort / Wellness
Global standards
Focus US market
Bus. & Leisure
Chic and cultured
French heritage
Focus European market
403 h.
Bus. & Leisure
Accessibility / Conviviality
158 h.
Business
Comfort / Functional
6 h.
45 h.
Midscale
Casual / Urban
Suites
Business
6
Network figures as of end 2010
Leisure
Lifestyle segmentation
Starwood – Company profile
December 2010
Extended stay
Eco-friendly
“New Generation” niche
3. Brand positioning & strategy (2/2)
Starwood has restructured its portfolio in 3 segments
and has launched or revitalized some brands :
Specialty select services : 3 brands in midscale
– with the launch of two brands Aloft and Elements
– with the rejuvenation of Four Points by Sheraton
Full Services : 6 brands from upscale to luxury
– With the $6bn revitalization program of Sheraton,
Starwood’s largest and most global brand
Starwood targets a consistent brand portfolio:
All hotels must comply with its brand standards:
– “Cleaning-up” of Le Méridien and Sheraton
resulting in a disposal of 20% of the hotels in the
system
– 60% of hotels are brand new or freshly renovated
 A portfolio focused on upscale and luxury segment
but a clear segmentation to avoid any cannibalization
− Introduction of a “lifestyle dimension” in addition to the
price based on 3 segments: Business, Leisure and New
Generation  each brand positioning corresponds to a
crossing Lifestyle / price
– If networks are still heterogeneous, the Group’s
communication is in line with this approach
 Each brand (except on the luxury pole) is under a
flagship umbrella in terms of communication and
logo:
– Luxury pole  1 brand / 1 label
• St Régis : Starwood luxury brand mainly in urban
environment
• The Luxury Collection : more a label than a brand
(hotels are not branded and keep their original
name), more in leisure environment
– Westin pole  1 flagship brand / 4 associated
brands
• Westin : Starwood upper-upscale flagship brand
(mainly US and Asia markets)
• W : a trendy declinaison with Westin design
• Le Méridien : Westin declinaison on European
markets with a trendy / smart touch
• A loft : A W midscale declinaison with a more
limited service
• Element : the Westin extended stay declinaison
– Sheraton pole  1 strong brand and a recently
brand associated
• Sheraton : the upscale Starwood flagship business
and leisure oriented
• Four Points : an upper midscale brand focused on
the business and MICE segment
Thanks to a clear segmentation, Starwood brands have a clear positioning avoiding
cannibalization and addressing different demands
Sources: Starwood website and reports, Network figures as of end 2010
7
4. Geographical Breakdown
Hotel and room network
1,027 h. / 301,736 r.*
(As of December 31, 2010)
North America
Europe, Africa &
Middle-East
538 h
169,191 r
2%
14% 3%
56%
20%
247 h
61,348 r
36%
Asia & Pacific
7% 12%
45%
19%
43%
South America
4%
61 h
12,753 r
181 h
58,444 r
38%
10% 9%
14% 8%
18%
34%
47%
60%
Luxury
Upper upscale
X%
8*Figures do not include vacation ownership
Share of
global
network
Starwood
Upscale
– Midscale
Company profile
Unbranded
September 2008
5. Room portfolio
Breakdow n
by brand
Category
ACCOR
Brand
Upscale & Luxury
St Regis
The Luxury Collection
W Hotels
Hotels
Room s
806
263 490
22
75
38
4 305
15 043
11 206
Sofitel
176
68 488
Luxury Sofitel Coll.
Luxury Sofitel Coll.
So
Luxury
Hotel av
Size
327
196
201
Geographical repartition (italic=estimate)
Europe Af. M. East
H
R
North Am.
H
R
Sth Am.
H
R
Operation m ode (% room s)
Asia Pac.
H
R
49 10 972
52 721
6
13
1 331
3 708
Mnged
Fchised
58%
36%
78%
51%
74%
3%
39%
222
57 233
375
142 564
3
42
389
7 140
11
11
2 276
3 547
2
9
295
3
1 050
29
8 926
2
433
4
797
19%
11%
26%
389
21
6 552
115
49 213
6
1 563
34
11 160
7%
58%
35%
309
648
160
Ow ned
& Leased
7%
0%
Westin
Up. Upscale
Le Méridien
Up. Upscale
Sofitel
100
26 678
267
59
16 012
11
2 604
2
324
28
7 738
0%
84%
16%
Upscale
Pullman
395
137 770
349
94
26 090
198
75 998
28
7 695
75
27 987
6%
51%
43%
212
36 818
174
25
4 115
154
25 199
12
1 781
21
5 723
9%
21%
71%
3
487
4%
11%
85%
12
1 781
18
5 236
1%
25%
74%
Sheraton
Midscale
Aloft (L)
Midscale
Novotel
46
6 827
136
2
555
41
5 785
Four Points (L)
Midscale
Novotel
158
27 391
173
22
3 560
106
16 814
8
2 600
325
1
7
2 600
1 018
300 308
295
247
61 348
529
167 763
9
1 428
0
0
9
1 428
9
1 428
159
9
1 428
1 027
301 736
294
538
169 191
14
7 000
500
13
6 618
1 041
308 736
297
551
175 809
Others
Total Lodging
Extended Stay
Element (L)
Total Hotels
Tim eshare
Total
Upscale
247
247
61 348
61 348
100%
61 12 753
0
58 444
7%
53%
40%
0
9%
9%
0%
0%
91%
91%
58 444
7%
53%
40%
0
61 12 753
1
181
181
382
62 13 135
tim eshare = 2% of total netw ork
181
58 444
Sources : 2010 10-K
2009
Occupancy rate
Average Daily rate
RevPar
9
61,5%
158,5
97,5
2010 Change
66,6%
160,0
106,6
5,1
0,9%
9,3%
6. Operating mode
Evolution 2003- 2010
Global network per operating mode
(In room number)
Network 2000
Network 2010
738 h / 227,000 rooms
1,041 h / 308,736 rooms
2% 7%
1%
22%
39%
42%
52%
35%
+81,736 rooms
+36% over 10 years
Owned & Leased
10
Sources: Starwood’s
2003 & 2010 annual reports
Management
Franchise
Timeshare
6. Operating mode
Per brand, 2010 FY
Brand*
Hotels
Rooms
22
4,305
75
15,043
38
11,206
176
68,488
100
26,678
395
137,770
158
27,391
46
6,827
4%
11%
9
1,428
9%
* Excluding unbranded hotels : 8 h. / 2,600 r. (100% owned)
11 Source: Starwood’s FY results 2010
Ownership by brand
19%
78%
11%
3%
51%
39%
26%
58%
35%
16%
84%
6%
51%
1%
25%
43%
74%
85%
91%
Owned
Managed
Franchised
Owned
Managed
Franchised
74%
7%
Owned
Managed
Franchised
Owned
Managed
Franchised
Owned
Managed
Franchised
Owned
Managed
Franchised
Owned
Managed
Franchised
Owned
Managed
Franchised
Owned
Managed
Franchised
7. Group strategy
Recent Group Strategy
Network 2000
738 hotels
227,000 rooms
– +341 hotels and 78,736 rooms
– Increase in profitability
– Increase in share of mgmt. and fra. contracts
– Development of vacation ownership
– Product innovation
– Sheraton revitalization (2007, $6bn plan)
– Launch of Aloft and Element (2008)
Network 2010
1,041 properties
308,736 rooms
2011 Group Strategy

Unique and strong brand positioning through a lifestyle segmentation;
innovation / renovation to keep brands fresh

Development of related products/services that enhance brand
experience and differentiation and deliver attractive economics
Expansion out of domestic
market

Focus on Asia and especially China (pipeline : 27k rooms, i.e 40% of total)

Starwood is the most int’l of US players (40% out of the US)
Earnings and cash-flow
maximization

Increase the number of hotel management contracts and franchise
agreement
Brand portfolio differentiation
Product innovation
12 Source: Starwood’s Q4 2010 earnings Call transcript
7. Group strategy
Asset Light Strategy
1
Asset Light Strategy
Starwood has been focused on reducing its investment in owned real
estate while simultaneously working to increase the revenue generated
from its management & franchise business
– The company is still in the process of moving to an asset-light business model by selling
owned hotels and non core assets as opportunities arise :
• Since 2000, the Company has sold 110 owned hotels for approximately $7.5 billion
(including 33 properties it sold to Host Hotels in 2006, for approximately $4.1 billion)
• Since 2000,the company has added 338 Managed and franchised hotels (79 k r.)
• Non Core business : Selling of multi-channel spa and retail product company Spa Bliss in
2009 (≈$100M)
– Keep hotel with high value/growth/returns
– Shift to higher margin fee business : management and franchise growth strategy
13
7. Group strategy
Development Strategy
2
Development
– Starwood CEO expects to open 70-80 hotels in 2011, signing new projects and conversions
– Upper Upscale & Luxury brands should represent 60% of these new openings (Sheraton = 30% of Starwood’s
pipeline)
– 84% will be outside USA, with a strong ambition in China & India
Americas
North Am. : • Hotels openings will represent both
new built & conversion properties
Asia- Pacific
China : • 70 hotels in operation, 85 in the
pipeline. In 2011, one in every three
new Starwood hotels will open in
China
• Openings of 30 h. in 2010
Latin Am. : • Openings of 6 hotels in 2011
• Sheraton represents the largest
portion of the Chinese pipeline with
approximately 31 hotels.
• Westin to debut in Peru, Mexico
and Panama in 2011
India :
EMEA
EMEA : • Opening of 50 hotels in EMEA over
the next three to five years,
including 12 hotels in 2011.
14
• Seven hotels to open in 2011
• Starwood expects to operate 50
hotels in India by the end of 2012 and
have 100 hotels under operation,
development or management
contracts signed by 2015
7. Group strategy
Brand strategy
3
Brand Strategy
Starwood has restructured its portfolio in 2 segments and has launched or revitalized some
brands :
Specialty select services : 3 brands in midscale
– with the launch of two brands Aloft and Elements
– with the rejuvenation of Four Points by Sheraton
•
In the past five years, Starwood and its partners have invested more than $1 billion to reinvent Four Points by Sheraton resulting
in a 70 percent turnover of the portfolio driven by major property renovations, conversions and new-build hotels
Full Services : 6 brands from upscale to luxury
– With the $6bn revitalization program of Sheraton, Starwood’s largest and most global brand
Starwood targets a consistent brand portfolio:
Each brand designed to cater a specific sub markets
All hotels must comply with its brand standards:
– “Cleaning-up” of Le Méridien and Sheraton resulting in a disposal of 20% of the hotels in the system
– 60% of hotels are brand new or freshly renovated
15
8. Pipeline and lodging development
Development in previous years
- 2006 : Opening of more than 50 hotels (14,000 rooms) and addition of 124 new properties in
portfolio through the acquisition of Le Méridien while removing 58 properties
- 2007 : Opening of 67 hotels and addition of 47,000 rooms to the pipeline
- 2008 : Opening of 87 hotels and addition of 147 properties to the pipeline
- 2009 : Opening of 83 hotels and addition of 77 properties to the pipeline
- 2010 : Opening of 70 hotels (managed and franchised) and no addition to the pipeline
Development plan, as of December 2010:
- 85,000 rooms in the active pipeline
- 61% of which is dedicated to the upper upscale and luxury categories
- Strong international development with 84% outside of the USA. Priority given to Asia (60% of
the pipeline, mainly China – 45% of Starwood’s pipeline – and India)
Pipeline breakdown in % of room total :
19%
55%
21%
5%
16
Sources: Starwood’s 2010 annual report,
Lodging Econometrics Q3 2010
EAME
United States
South America
APAC
9. Key figures
P&L evolution & forecasts
Financials (in M$)
Revenue
2000A
5 040
2001A
4 633
2002A
4 588
2003A
4 630
2004A
5 368
2005A
5 977
1 509
1,0%
0,0%
0,9%
15,9%
11,3%
1 094
1 039
856
1 084
1 229
29,9%
23,6%
22,6%
18,5%
20,2%
20,6%
398
147
251
105
369
7,9%
3,2%
5,5%
2,3%
6,9%
% Change in Revenue
EBITDA
EBITDA margin
Net Profit
Net margin
2006A
5 979
2007A
6 153
2008A
5 907
2009A
4 756
2010A 2011E 2012E CAGR 2003-2010
5 071 5 229 5 768
1,3%
0,0%
2,9%
-4,0%
-19,5%
6,6%
3,1%
1 145
1 164
942
793
879
997
1 160
19,2%
18,9%
15,9%
16,7%
17,3%
19,1%
20,1%
423
1 115
543
254
73
237
321
444
7,1%
18,6%
8,8%
4,3%
1,5%
4,7%
6,1%
7,7%
So urces: co mpany repo rts and Reuters co nsensus estimates as o f M arch, 4 2011
In M$
17
Starwood – Company profile
December 2010
10,3%
0,4%
12,3%
10. SWOT analysis
Strength
– Strong portfolio of internationally well-known
hotel brands with a good image
– Innovation capacity (brand creation : Aloft,
Element)
– Starwood excels in North America
– Strong loyalty program
18
Weaknesses
– High sensitivity to the economic fortunes of its
domestic market (confinement to upscale and
luxury segments)
– Dependence on North America
– Limited presence in emerging markets
– Old designed Sheraton network, requiring a
strong and expensive renovation program
Opportunities
Threats
– Development of two new brands in the limitedservice segment opening potential for new
customers
– Consolidation of presence in Europe with the
acquisition of Le Méridien
– Intensification of competition in mature
markets is likely to favor major brands with
high levels of consumer recognition and
significant marketing resources
– Over reliance on upscale hotels may erode
– Starwood‘s potential to boost sales in line with
consumer trends towards low-cost travel
– Timeshare segment trend to be considered with
caution
11. Company history
19
2006
- Launch of Element, a new brand on the extended stay segment
2005
- Acquisition of Le Méridien which greatly increased the company's operations in Europe
- Launch of A Loft, a new hotel brand based on W hotels
2004
- Starwood's founder and CEO Barry Sternlicht stepped down as CEO, to focus his attention on his
other firm, Starwood Capital. He remained on the Board of Directors until 2005
1999
- Change of the corporate form from an REIT to a C-Corporation
- Acquisition of Vistana Inc. renamed Starwood Vacation Ownership
1998
- Launch of W Hotels, a new lifestyle brand
1997
- Acquisitions of Westin H&R and ITT Sheraton Corporation
- Starwood is removed from the S&P 500 as no REIT is allowed in the index.
1995
- Starwood Capital takes control of a distressed NYSE listed company: Hotel Investors Trust, a
REIT and renamed it Starwood Lodging (Starwood keeps its NYSE stock symbol, HOT)
1991
- Barry Sternlicht forms Starwood Capital Partners in 1991 in Chicago backed by high net worth
families specializing in real estate acquisitions. Starwood Capital buys its first hotels in 1993
1980
- Incorporation of Starwood
1969
- Creation of Starwood
Source: Datamonitor company profiles
12. Brands description
St Regis
The Luxury Collection
W Hotels
Full Service
Westin
Le Meridien
Sheraton
Four Points
Limited Service
Aloft
20
Extended Stay
Element
Timeshare
Starwood Vacation Ownership
Source: Starwood’s FY results 2010
Starwood Brands Portfolio
From midscale to luxury with clear lifestyle positioning
19 h.
High-end luxury
76 h.
Authentic Luxury
Bespoke services
Unique / Local
Group of hotels
38 h.
Price segmentation
Trendsetter
Design / Innovation
Upper upscale
Upscale
176 h.
100 h.
Bus. & Leisure
Comfort / Wellness
Global standards
Focus US market
Bus. & Leisure
Chic and cultured
French heritage
Focus European market
403 h.
Bus. & Leisure
Accessibility / Conviviality
158 h.
Business
Comfort / Functional
6 h.
45 h.
Midscale
Casual / Urban
Suites
Business
Network figures as of end 2010
21
Leisure
Lifestyle segmentation
Starwood – Company profile
December 2010
Extended stay
Eco-friendly
“New Generation” niche
St. Regis
19 hotels / 3,860 rooms
Positioning
Network


Existing network
19 hotels / 3,860 rooms
(average of 203 r. per hotel)
13% 27% 9%

Concept: Full service, authentic luxury
heritage, tradition and opulence

Target : Industry leaders with
entrepreneurial spirit, international
dignitaries, style pacesetters, contemporary
epicureans, “Connoisseurs of the art of
living”

Location : World’s most prestigious places
(urban & resort). Best address in town.

Main competitors : Sofitel Legend, RitzCarlton, the Waldorf-Astoria Collection

RevPar 2010 : $186 (incl. Luxury Collection)
North America
EMEA
APAC
South America
– Worldwide brand
– 9 countries
Pipeline
13%
36%
37%
15%
North America
EMEA
APAC
South America
– 5k rooms (+130% vs. exist.)
– Focus on ME (2k) and China (1k)

Luxury brand (Starwood’s flagship brand)
Geographical footprint
50%


Operating type: mainly Mngt
20%
22
75%
5%
Owned
Managed
Franchised
Strategy

Brand internationalization

Portfolio to double by 2014.

5k rooms in the pipeline, with focus on
Middle East and China

Comm’ emphasizing on quality and
bespoke services
Starwood – Company profile
December 2010
The Luxury Collection
76 hotels / 12,399 rooms
Positioning
Network


Existing network
76 hotels / 12,399 rooms
(average of 163 r. per hotel)
Luxury “brand” (2nd largest luxury “brand”
ww). Group of hotels, rather than brand

Concept: Full service, Legendary palaces
and remote retreats. Unique and indigenous
experiences, Non standardized hotels (label
/ group of hotels)

Target : Global discerning adventurers

Location : World’s most prestigious places,
either primary cities or resort places

Main competitors : Sofitel Legend,
Bulgari, the Waldorf-Astoria Collection,
Relais & Chateaux

RevPar 2010 : $186 (incl. St. Regis)
Geographical footprint
14%
55%
17%13%
North America
EMEA
APAC
South America
– Worldwide brand with focus on
EMEA
– 28 countries


Pipeline
7% 32%
52%
8%
North America
EMEA
APAC
South America
– Limited : 2k rooms (+18%)
– 80% of pipeline in emerging markets

Operating type : mix model
15% 38%
23
48%
Owned
Managed
Franchised
Strategy

Limited pipeline vs. other brands

Development focused on China and ME

Comm’ emphasizing on a unique location
and experience
Starwood – Company profile
December 2010
W
38 hotels / 11,206 rooms
Positioning
Network


Existing network :
38 hotels / 11,206 rooms
(average of 295 r. per hotel)

Upper upscale brand (created in 1999)

Concept: Full service, Innovative and
stylish designed hotels, Be the coolest
place in town, attractive F&B outlets
Geographical footprint

Target : New Generation, Younger clients
who are into music, fashion, design, etc.
Trendsetters interested in the lastest,
newest, hippest.

Location : Upscale neighborhood close to
business districts

Main competitors : So by Sofitel, RitzCarlton, Intercontinental H&R, Conrad
H&R, Park Hyatt

RevPar 2010 : $172
76%
North America
EMEA
APAC
South America
11%
– Mainly US
– 10 countries

Pipeline
4%
42%
49%
North America
EMEA
5% APAC
South America
– 6k rooms (+50% vs. exist.)
– 95% out of the US
Strategy

Operating type : mainly Mngt

Reach 50 hotels in 2-3 years
Owned

Internationalization with 95% of the
pipeline out of the US

Comm’ emphasizing on the “cool” side
30%
24
70%
Managed
Starwood – Company profile
December 2010
Westin
176 hotels / 68,488 rooms
Positioning
Network


Existing network :
176 hotels / 68,488 rooms
(average of 389 r. per hotel)

Upper upscale brand (Starwood’s flagship
brand in the upper upscale segment)

Concept: Full service, Lifestyle hotels with
many sub-branded products and services
(ex. Westin Heavenly Bed, line of products
for bed, bath, spa), Contemporary and zen
design, balance between work hard and
wellness, “Sure thing” (global standards)

Target : College-educated professionals
between 35-49 years old with demanding
standards

Location : Primary & sec. cities, Resorts

Main competitors : Sofitel, Marriott H&R,
Renaissance, Hilton, Crowne Plaza, Hyatt

RevPar 2010 : $118
Geographical footprint
65%
12% 19%
North America
EMEA
APAC
South America
– Mainly US
– 37 countries

Pipeline
16% 13%
45%
25%
North America
EMEA
APAC
South America
– 12k rooms (+18% vs. exist.)
– 80% out of the US.

Strategy
Operating type : mainly Mngt & Fr.
7%
25
58%
35%
Owned
Managed
Franchised

Active development worldwide with 80%
of the pipeline out of the US

Focus on China (4k) and India (1k)

Comm’ emphasizing on the comfort,
wellness and common global standards
Starwood – Company profile
December 2010
Le Méridien
100 hotels / 26,678 rooms
Positioning
Network


Existing network :
100 hotels / 26,678 rooms
(average of 267 r. per hotel)

Upper upscale brand (Acquired in 2005 to
complete Westin’s portfolio in Europe)

Concept: Full service, Westin’s sister
brand in Europe, Focus on European and
French heritage on food, culture and
design, Timeless chic design, Chic,
Cultured, Discovery

Target : Upscale travelers, the « creative
guest » (engineers, journalists, scientists,
architects and entertainment agents).

Location : Primary & sec cities, Resorts

Main competitors : Pullman, Marriott H&R,
Renaissance H&R, Crowne Plaza, Hilton

RevPar 2010 : $126
Geographical footprint
11%
59%
28%
North America
EMEA
APAC
South America
– Worldwide brand , focus on EMEA
– 44 countries

Pipeline
42%
North America
EMEA
APAC
South America
58%
– 3.5k rooms (+13% vs. exist.)
– 1/3 of the projects in China (1.2k r.)
Strategy
 Major strategic axis since acquisition
(2005): Portfolio “Cleaning up”
- Disposal of 20% of the hotels

- 35% of hotels under renovation
Operating type : Asset Light
85%
26
15%
Managed
Franchised

Limited pipeline: Europe and Asia only

Comm’ emphasizing on a rejuvenated
brand, on difference (European heritage)
Starwood – Company profile
December 2010
Sheraton
403 hotels / 140,382 rooms
Positioning
Network

Existing network :
403 hotels / 140,382 rooms
(average of 348 r. per hotel)

Upscale brand: Starwood largest and most
important brand, from both a footprint (47%)
and revenue standpoint. Heterogeneous
segment positioning by geography: Upscale
out of the US vs. lower upscale in the US

Geographical footprint

Concept: Full service, Approachable luxury

Target : Both business and leisure
travelers (Family)

Location : Primary & sec. cities, Resorts

Main competitors : Pullman, Marriott H&R,
Renaissance H&R, Crowne Plaza, Hilton,
Hyatt Regency

RevPar 2010 : $94
49%
25% 19% 7%
North America
EMEA
APAC
South America
– Worldwide brand
– 69 countries

Pipeline
9%12%
North America
EMEA
APAC
South America
77%
– 22k rooms (+16% vs. exist.)
– Strong focus on China (14k).

Strategy

3-year revitalizing brand program of
$6bn: renovation of 90 hotels in progress,
removal of 35 off brand hotels

Largest pipeline, with focus on APAC

Comm’ emphasizing on the accessibility
and conviviality / sharing
Operating type : Asset Light
6%
27
51%
42%
Owned
Managed
Franchised
Starwood – Company profile
December 2010
Four Points by Sheraton (1/2)
158 hotels / 27,391 rooms
Positioning
Network


Existing network :
158 hotels / 27,391 rooms
(average of 173 r. per hotel)

Upper-midscale brand

Concept: Limited service, Derived from
Sheraton, Most global mid-market brand,
Honest uncomplicated comfort
Geographical footprint

Target : Business travelers and small
conventions

Location : Mainly urban locations near
airports and business centers

Main competitors : Mercure, Novotel,
Courtyard, Hyatt Place

RevPar 2010 : $69
67%
14%
North America
EMEA
APAC
South America
– Mainly US

Pipeline
38%
47%
15%
North America
EMEA
APAC
South America
– 10k rooms (+37% vs. exist.)
– Focus on the US (33%), China (32%)

Strategy

Operating type : mainly Franchise
24%
28
75%
Repositioning from mid to uppermidscale
- Over $1bn invested in renovations,
conversions and new hotels
Owned
Managed
Franchised
- Affiliation to Sheraton

Second largest pipeline

Comm’ emphasizing on business target
Starwood – Company profile
December 2010
Four Points by Sheraton (2/2)
Affiliation brand strategy: case study

Four Points by Sheraton was created as Sheraton’ sister midscale brand.

Operated as a stand-alone brand only for 2 years, being then rebranded with Sheraton affiliation

A $1bn rejuvenation plan between 2004 and 2010 resulted in a 70% turnover of the portfolio and in a repositioning on
the upper-midscale segment.
Sheraton H&R
Starwood
Ownership
Upscale
Midscale
1995
1998
• Creation of Four
Points by Sheraton
Hotels
• Brand created to
replace Sheraton
Inns brand
• Acquisition by
Starwood of ITT
Sheraton, Four Points
parent company
• Rebranding : brand
operated as Four
Points
2000
• Relaunch of Four
Points by Sheraton
2010
2004
• Launch of a $1 b
rejuvenation plan
• Repositioning of
the brand: from
midscale to upper
midscale
Affiliation to support brand performance & enable repositioning
29
Aloft a vision of W hotels
45 hotels / 6,777 rooms
Positioning
Network


Existing network :
45 hotels / 6,777 rooms
(average of 151 r. per hotel)
Midscale brand (created in 2005)

Concept: Limited service, Concept derived
from W., More casual, social and affordable
than W hotels, Urban-style business /
boutique hotel brand.

Target : New generation, Young and
fashion-conscious oriented

Location : Urban areas, unexpected places

Main competitors : Indigo Hotel,
SuiteNovotel

RevPar 2009 : $86
Geographical footprint
North America
EMEA
APAC
92%
– Focus on US


Pipeline
57%
7%
32%
4%
North America
EMEA
APAC
South America
– 6.5k rooms (+100%)
– Start of internationalization process

Operating type : mainly Franchise
88%
30
Owned
Managed
Franchised
Strategy

Network to be doubled by 2014

Initialization of international development
with focus on China and India

Affiliation to W hotels

Comm’ emphasizing on the urban style
Starwood – Company profile
December 2010
Element by Westin
9 hotels / 1,428 rooms
Positioning
Network


Existing network : 9 hotels / 1,428
rooms in operation = 159 rooms per
hotel on average

Midscale brand (created in 2008)

Concept: Extended Stay, Smart and
renewing brand with an emphasis on
nature, Built eco-friendly
Geographical footprint

Target : New Generation, Green-minded
travelers, Extended stay (Leisure)

Location : Urban areas

Main competitors : Adagio, TownePlace
Suites, Summerfield Suites
North America
100%
– US only

Pipeline
87%
13%
North America
EMEA
APAC
South America
– 2k rooms (+140% vs. exist.)
– 11 hotels in the US, 1 in Abu Dhabi
Strategy

Operating type : Franchise mainly
16%
31
84%
Owned
Franchised

Aggressive launch of the brand confirmed

Affiliation to Westin brand

Still focused on the US, but with first
move of internationalization.

Comm’ emphasizing on the green attitude
Starwood – Company profile
December 2010
13. Executive Officers
Mathew E. Avril
Simon M. Turner
President Hotel Group
President Hotel Group
Vasant M. Prabhu
Philip P. McAveety
Executive Vice President and
Chief Financial Officer
Executive Vice President and
Chief Brand Officer
Frits Van Paaschen
CEO
32
Keneth S. Siegel
Jeffrey M. Cava
Chief Administrative Officer,
General Counsel and Secretary
Executive Vice President and
Chief Human Resources Officer