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©2012 STARWOOD HOTELS & RESORTS WORLDWIDE, INC. | Proprietary & Confidential FRITS VAN PAASSCHEN // CHIEF EXECUTIVE OFFICER STARWOOD STRATEGY 75
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Starwood Strategy 2013

Apr 13, 2015

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Starwood Strategy 2013
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Page 1: Starwood Strategy 2013

©2012 STARWOOD HOTELS & RESORTS WORLDWIDE, INC. | Proprietary & Confidential

FRITS VAN PAASSCHEN // CHIEF EXECUTIVE OFFICER

STARWOOD STRATEGY

75

Page 2: Starwood Strategy 2013

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.

Page 3: Starwood Strategy 2013

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

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Page 4: Starwood Strategy 2013

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

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Page 5: Starwood Strategy 2013

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

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Page 6: Starwood Strategy 2013

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

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Page 7: Starwood Strategy 2013

ST. REGIS Redefining Luxury, Leading the Competition

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Page 8: Starwood Strategy 2013

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)

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Page 9: Starwood Strategy 2013

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

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Page 10: Starwood Strategy 2013

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

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Page 11: Starwood Strategy 2013

THE LUXURY COLLECTION 85 Unique and Celebrated Hotels

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Page 12: Starwood Strategy 2013

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

Page 13: Starwood Strategy 2013

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

Page 14: Starwood Strategy 2013

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

Page 15: Starwood Strategy 2013

W HOTELS A Global Brand No One Comes Close to Replicating

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Page 16: Starwood Strategy 2013

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

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Page 17: Starwood Strategy 2013

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

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Page 18: Starwood Strategy 2013

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

Page 19: Starwood Strategy 2013

LE MERIDIEN The Power of Starwood Transforms a Brand

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Page 20: Starwood Strategy 2013

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

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Page 21: Starwood Strategy 2013

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

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Page 22: Starwood Strategy 2013

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

Page 23: Starwood Strategy 2013

WESTIN Category Killer in North America Growing Globally

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Page 24: Starwood Strategy 2013

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

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Page 25: Starwood Strategy 2013

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

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Page 26: Starwood Strategy 2013

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

Page 27: Starwood Strategy 2013

SHERATON Global Powerhouse in its Best Shape Ever

100

Page 28: Starwood Strategy 2013

THE WORLD’S GATHERING PLACE INSPIRED BY THE SOCIAL TRAVELER

» Fueling Starwood’s growth and market share gains

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Page 29: Starwood Strategy 2013

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

Page 30: Starwood Strategy 2013

427 Sheraton Hotels by the end of 2012; 416 currently open and 11 more scheduled to open in 2012 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 PIPELINE LA

30 HOTELS 6 PIPELINE

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Page 31: Starwood Strategy 2013

FOUR POINTS BY SHERATON A Brand with Global Momentum

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Page 32: Starwood Strategy 2013

COMFORT ISN’T COMPLICATED INSPIRED BY SELF-SUFFICIENTS

» Great Hotels. Great Rates.

» What matters most.

105

Page 33: Starwood Strategy 2013

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

Page 34: Starwood Strategy 2013

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

Page 35: Starwood Strategy 2013

ALOFT As Disruptive in its Category as W, Addressing a Global Need

108

Page 36: Starwood Strategy 2013

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

Page 37: Starwood Strategy 2013

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

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Page 38: Starwood Strategy 2013

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

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Page 39: Starwood Strategy 2013

ELEMENT Groundbreaking Approach Gaining Momentum

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Page 40: Starwood Strategy 2013

SPACE TO LIVE YOUR LIFE INSPIRED 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

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Page 41: Starwood Strategy 2013

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

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Page 42: Starwood Strategy 2013

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

Page 43: Starwood Strategy 2013

THE POWER OF STARWOOD

OPERATIONS REVENUE

MANAGEMENT SALES

CENTRAL MARKETING DELIVERY SPG

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

Page 44: Starwood Strategy 2013

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.

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Page 45: Starwood Strategy 2013

KELLY – SPG PLATINUM MEMBER

STARWOOD PREFERRED GUEST

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Page 46: Starwood Strategy 2013

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

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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

Page 48: Starwood Strategy 2013

SPG GROWTH – MEMBERS NOW FILL 50% OF ROOMS

40% 45% 50%

2008 2010 2012

SPG Share of Occupancy

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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

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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

Page 51: Starwood Strategy 2013

BRAND/ FIELD MARKETING & PARTNERSHIPS

124

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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

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THE POWER OF GLOBAL PARTNERS

LIFESTYLE & ENTERTAINMENT TRAVEL SPORTS & FITNESS FINANCIAL PARTNERS FOOD & BEVERAGE RETAIL

126

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CENTRAL MARKETING DELIVERY

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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

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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

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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

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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

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STARWOOD SALES ORGANIZATION

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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

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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

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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

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REVENUE MANAGEMENT AND OPERATIONS

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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

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NEW BUILDS AND TRANSITIONS TRANING AND SERVICE CULTURE

LEAN HOTEL OPERATIONS ARCHITECTURE AND ENGINEERING

Closet

Bed

Bed

Bath-

room

TV

Desk

Cart

Hallw

ay

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

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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

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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)

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STARWOOD STRATEGY: INDIVIDUAL SPIRIT, COLLECTIVE STRENGTH

141