STA ST ARW RWOOD OOD STRA STRAT TEGY FRITS VAN VAN PAASSCHEN PAA SSCHEN // CHIE IEF F EXECUTIVE OFFICER ©2012 STARWOOD HOTELS & RESORTS WORLDWIDE, INC. | Proprietary & Confidential
FORWARDRD-LOOK LOOKING STATE TEMENT MENTS S These presentations presentations contain forward-look forward-looking statements wit ithin hin the meaning of federal federal securities securities regulations. regulations. These forward- looking stat tatements ements generally generally can be identified identified by phrases such as Starwoodor its management “beli elieves, eves,” ”“expects,” “anticipates,” anticipates,”“ “foresees,” foresees,”“ “forecasts,” ts,”“ “estimates” estimates”or or other words or phrases of similar import. Similarl ilarly y, statements in this this release that describe the the Company’s business strat trategy egy, outlook, objectives, plans, intenti intentions onsor goals also also are forw forwardard-looking looking statem state ments. Forward-looking statements are not guarantees guarantees of future perform performance and involve risks risks anduncerta ertainti inties es and other factors that may cause actual results results to diff iffer er mate ateria rialllly y fromthose anticipated anticipated at the tim time the forward-look forward-looking statements are made. Future results, results, performance and achievements may be affected affected by general economic condit itions ions including the severity and duration of any any downturn in the the US or global global economy, the im impact of war and and terrorist acti activity, vity, business and financing financing condit itions, ions, including the availability availability of mortgage financ financing, foreign exchange fluctu fluctuations, cyclicality of the real real estate, including the sale of residential residenti al units, and the hotel and vacation ownership businesses, operating operating risks associate ociated d wit ith h the sale of residential residential units, units, hotel and and vacati acation on ownership businesses, rel relati ations onships with asso associat ciates, es, customers and property owners, the im impact of the the internet inter net reservation reservation channels, our reliance reliance on technology, domesti estic c and international international political political and geopolit olitical ical conditions, competi petiti tion, on, governmental and regulatory actions (including (includingthe impact of changes in U.S. U.S. and foreign tax laws lawsand their interpretat inter pretation), ion), travel travelers’ ers’ fears fears of exposure to contagious diseases, risk associate ciated d wit ith h the level of our indebtedness, risk risk associat iated ed with potential potential acquisitions acquisitionsand dispositions, and other circumstances and uncertai certaintie nties. s. There There can also be no assurance that agreements wililll be entered entered into for the hotels in the Company’s pipel ipeline ine and, if if entered entered into, the the timing of any agreement and the opening of the relate related d hotel tel.. These These risks and uncert ertainti ainties es are presented presented in detail in in our fili filings ngswith the Securities Securiti es and Exchange Commission. Although we believe believe the the expectations expectations reflected reflected in in such forwardard-looking looking statements are based upon reasonable assumptions, we can give no assurance that our expectations will be attained attained or that results will will not mate ateria rialllly y diff iffer. er. We undertake no obliligation gation to publicly update or revise any forward-looking statement, whether as a result result of new informati ation, on, future future events or otherwise. Please Plea se note that these presentati presentations ons include non-GAAP fi financial nancial measures. For definiti definitions onsof certain certain termsused herei erein n anda presentation of the most directly comparable financial measure calculated and presented in accordance with GAAP and a pr reconcililiat iation ion of the differences differences between the non-GAAP financial financial measure disclosed andthe most comparable fi financial nancial measure calculated calculat ed and presented in accordance with GAAP, please refe referr to the the Company’s web site at www.starwoodhotels.com.corporate/investor_relations.html.
INDIVIDUAL SPIRIT, COLLECTIVE STRENGTH » Sta Starwo rwood’s brands lie at at the heart of our competiti petitive ve advantage » Disti Distingu nguished by a combinati bination on of Lifestyle Lifestyle Concepts, Design Leadership Leader ship and Innovation » Collective strength strength of of SPG and Starwo Starwood centralized services (Sales, Revenue Management, Web Web)) un unify ify our brands and drive pe p erformance
NINE DISTINCT GLOBAL LIFESTYLE BRANDS »Renowned lifestyle lifestyle hospitali ho spitality ty brands with with four andfive star focus »1, 1,134 134 pr prop operties »335,415 rooms »Nearly 100 100 countries countries »In 2012, 2012, signed most deals deal s since since before the economic crisis crisis
LUXURY
UPPER UPSCALE
SELECT SERVICE
» Uncompromisi sing, ng, Address, Bes Bespoke » 30 hotels » 6413 room rooms » 15 countries
» Excep Excepti tiona onal, I ndigenous, Experience » 85 hotels » 16,366 room rooms » 29 countries
» Personal, I ns nstinctive, tinctive, Renewal » 192 hotels » 74,626 room rooms » 35 countries
» Warm, Connecte Connected, Community » 427 hotels » 149,784 room rooms » 69 countries
» Chic, Cultured, Discovery » 96 hotels » 25,347 room rooms » 41 countries
» » » »
» Honest, Uncomplicated, Comfort » 171 hotels » 30,924 room rooms » 29 countries
» Smart, Alive, Balance » 10 hotels » 1,641 room rooms » one country
Sassy, Savvy, Space 62 hotels 9,859 rooms 10 countries
» Flirty, Insider, Escape » 44 hotels » 12,369 room rooms » 18 countries
STARWOOD INNOVATES WITH A PASSION »Innovation is the heartbeatt of our heartbea our brands bra nds and our design. It is is how we deepen dee pen our rela re latitionsh onships witith h our guests and and our customer ers s and stand stand apart from fromthe rest rest »On One e great idea creates creates another, giving Starw Star wood the ability ability to build buil d uponour success across nine compell pelling ing brands
STARWOOD CRE STARWOOD CREA ATES EMOTI EMO TION ON BY DESIGN DESIGN »Our guests don’t just check in to a hotel. They are immersed in in an experience » A Att Starwood, design doesn’t begin with a blueprint. blu eprint. It It begins with a story. And for each ea ch of our nine brands,, that story brands captures capture s the emotions and aspirations aspirations of our guests »Design That Can Only Be Starwo Starwood od
ST. REGIS Red Re defining Luxu xury, ry, Leading the the Co Com mpetition 80
BEYOND EXPECTATION INSPIRED BY THE NEW GLOBALELI ELITE TE
» Glo Glob bal leader in luxu luxury ry » Mo More re than dou doubled to 30 hotel ho tels s since since 2007 2007 – tripling tri pling to almos almostt 40 40 hotel ho tels s by 2015 » Global expansio expansion n– 3 new hotel hotels s in China (2011), entry into the Middle Midd le East with 3 new hotel ho tels s & fir first st hotel hotel in Affrica (2012) A
81
UNPARALLELED EXPERIENCES » St. Regis Afic ficio ion nad ado o™ » Privi Privileg leged ed acce access ssto unique experiences experiences
» St. Regis Regis Butler Servic Service e » Wor orld-clas ld-class s restau restaurant rants s » Award-win ard-winnin ning g ch chefs efs
ST. REGIS AFICIONADO
WORLD-CLASS RESTAURANTS AND CHEFS
ST. REGIS BUTLER SERVICE
IRIDIUM SPA
» Ri Ritu tuals als » Blo loo ody Mary Mary & Affternoon Tea A
» St. Regis Con Connoiss isseurs eurs » Polo » Jazz » Jazz at Lin inco coln Cen Center ter at The St. Regis Doha Doha
82
GLOBAL GROWTH UNPRECEDENTED GLOBALGROWTH GROWTH 2013 – 2015 Ab A bu Dhabi, Amman, Cairo, Changsha, Chengdu, Kuala Kuala Lumpur, Lijiang, Riviera Maya, Zhuhai 2007 13 HOTELS 62% NORTH AMERICAN OPERATING & PIPELINE 49 HOTELS SOURCE: STARWOOD INTERNAL PIPELINE REPORTING AS OF 12/31/12
NOW As Aspen, Atlanta, Bahia Beach, Bal Harbour, Bali, Bangkok, Beijing, Bora Bora, Deer Valley, Doha, Florence, Florence, Houston, Lhasa, Mardavall, Mallorca, Mexico City, Monarch Beach, NewYork, Osaka, Princeville, Princeville, Punta Mita, Rome, Saadiyat Saadiyat Island, Island, San Francisco, Sanya Sanya Yalong Yalong Bay, Shenzhen, Singapore, Tianjin, WashingtonD.C.
24% NORTH AMERICAN
83
THE LUXURY COL COLLECTI ECTION ON 85 Unique and Celebrated Hotels
84
THE DESTINATION AU A UTHORITY INSPIRED BY GLOBAL EXPLORERS EXPLORERS
» Blend lending ingdistin distinctio ction and global global strength » Combin bining inglocally rele relevant vant prroperties with the strength p of Star Starw wood’s system systems and high-end high-e ndfocus » Over 80 uniq uniqu ue and and celebrated hotels hotels in in 29 countries » Added 6,800 6,800 room rooms since since 2007
85
EXPLORE AND EXPLORE AND EXPERIENCE » Mar Market-d ket-driven riven,, loc locally ally relevant experiences » The Luxu xury ry Colle Collection ctionCo Conc ncierge ierge » Th The e Coc Cocktail Collect Collection ion
FALCONRY, AL MAHADESERT RESORT & SPA, DUBAI, UAE
» Global Explorers, Explorers, Brand Ad A dvocates, Travel Provocateurs » Des Destinatio tination n Guides byAssouli Assouline ne » Jo Journ urneys eys by by The Luxu xury ry Coll Collection ection
THE LANDROVER EXPERIENCE EXPERIENCE DRIVING DRIVING SCHOOL, THE EQUINOX GOLF RESORT &SPA, VERMONT, USA USA
86
GLOBAL GROWTH THE LUXURY COLLECTION MAINTAINS EXCLUSIVITY WITH INCREASING GLOBAL PRESENCE 2013 – 2015 Cusco, Cus co, Dalian, Dalian, Dubai, Hangzhou, Koh Samui, Nanjing, Nanning, Nanning, San San An A ntonio, Seminyak, Suzhou, Suzho u, Xiamen
2007 57 HOTELS 18% NORTH AMERICAN
NOW
OPERATING & PIPELINE
WITH 85 HOTELS IIN N 29 COUNTRIES, LUXURY COLLECTION MAINTAINS EXCLUSIVITY IVITY WITHINCREA INCREASING GLOBALPRESENCE
105 HOTELS SOURCE: STARWOOD INTERNAL PIPELINE REPORTING AS OF 12/31/12
16% NORTH AMERICAN
87
W HOT HOTELS ELS A Global Brand No One Comes Close to Replicating 88
INSIDER AC A CCESS TO AWORLD OF WOW INSPI NSPIRED RED BY TRENDSETTERS
» Catego Category ry inn innov ovator ator born bo rn in NYC and transform tra nsformed into into a global design po p owerhouse » Ou Outperfo tperform rming the the global competi petitition on for the last 10+ years
89
CREATING EXPERIENCES TO SHOWCASE WHAT’ T’S S NEW NEWAND NEXT NEXT
Dynamic guest experie experiences nces through signature signature program programming » W Happ Happening enings s (W’s Signature Event Series) » Livin iving g Ro Room » W Ins Insid ider er » Pass Passion ion Point Point Activations – Design, Fashion, Music » Wet Dec eck k » B&F vs. vs. F& F&B B » Bliss Spa, Spa, Away Spa Spa » Whatev hatever er / Whenev enever er Service
LIVING ROOM
WET DECK
W HAPPENINGS
90
GLOBAL GROWTH EXPANDING IN EXPANDING IN THE WORLD’S HOTTEST HOTTEST CITIIES AND CIT AND MOST EXCLUSIVE RESORT LOCATIONS 2013–2015 Ab A bu Dhabi, Beijing, Goa, Guangzhou, Mexico, Milan,, Musc Milan scat, at, Riviera Maya, May a, Santa Fe de Bogo gota, ta, Shanghai, Tel Av A viv, Verbier
2007 20 HOTELS 85% NORTH AMERICAN OPERATING & PIPELINE 71 HOTELS 39% NORTH AMERICAN
NOW At Atlanta, Austin, Bali, Bangkok, Barcelona, Boston, Chicago, Dallas, Doha, Fort, Lauderdale, Lauderdale, Hoboken, Hollywoo Hollywood, Hong Kong, Istanbul, Istanbul, Koh, London, Los Angeles, Maldives, Mexico City, Minneapolis, Montreal, treal, New Orleans, New York, Paris, Paris, San San Diego, San Francisco, Singapore, Samui, Santiago, Santiago, Scottsdale, Seattle, Seattle, Seoul, Seoul, Silicon Valley South Beach, St. Petersburg, Taipei, Vieques, Washington, D.C.
SOURCE: STARWOOD INTERNAL PIPELINE REPORTING AS OF 12/31/12
91
LE MERIDIEN The Power of St Sta arw rwo ood Tra Transforms a Bra ran nd 92
ANEW PERSPECTIVE INSPIRED BY CREATI TIVE VE MINDS
» Ov Over er seven seven years with Starwoo Sta rwood has led led to the brand’s best best portfolio portfolio ever » Rein Reinven vented ted Le Mérid Méridien, ien, turninga disparate disparate collection collection of hotels into a strongand compell pelling ing brand » $2. $2.5B 5B inves invested ted in newbuilds and renovations renovationssince Starwoo Sta rwood took over the the brand in 2005 2005 » Opened30 newhotels » 50%+ reno renovated » 50 hotels hotels removedfro from m the system 93
CREATI TING NG AN AN ENVIRONMENT
THAT STI STIMULATES CURIOSI CURI OSITY TY AND AND DIAL DIALOGUE » Built brandposition sitioning ing& delivery deli very aroundthe arts arts & culture: » Cu Curated rated art exp experien eriences ces
HIGH-IMPACT ARRIVAL ARTWORK
UNLOCK ART
COFFEE CULTURE
LE MERIDIEN HUB
» Le Mérid Méridien Hub lobby concept » Coffe ffee e cultu culture » Art partn partners ersh hip ips s
» Targetin argeting g over 150 million million affluent, affluen t, wellell-traveled traveled pe p eople worldwide, including artists, art ists, musicians, media media managers, consultants and and more
94
GLOBAL GROWTH AN INTERNATIONAL AN PORTFOLIIO OF PORTFOL OF ~ 100 HOTELS, WITH GLOBAL DEVELOPMENT OPPORTUNITY
NORTH AMERICA AM 11 Hotels 4 Pipeline
LATIN AMERICA AM 2 Hotels
AFRIC AF ICA A& MIDDLE EAST 28 Hotels 3 Pipeline
AS A SIAPACIF IFIC IC EUROPE 29 Hotels 17 Pipeline
26 Hotels 1 Pipeline
SOURCE: STARWOOD INTERNAL PIPELINE REPORTING AS OF 12/31/12
95
WESTIN
Cate Ca teg gory Ki Killer in in Nort North h Am Ameri rica ca Growing Gl Globally 96
WESTIN. FOR A BET ETTER TER YOU INSPI NSPIRED RED BY THE ACHIEVER
» One of of the the industry’s industr y’s most most distinctively po p ositioned and innovati inno vative ve glob global al brands, which pe p erennially outper ou tperform forms s the the competition
97
CREATING EXPERIENCES »Westin provides innovative innovati ve progra program ms and instinctive services that transform every aspect of a guest’s stay into into a revitalizing revitalizing experience, experienc e, so they leave feeling better than when they arrived arrived
SLEEP WELL
EAT WELL
MOVE WELL
FEEL WELL
WORK WELL
PLAY WELL
Heavenly Bed
SuperFoodsRX
WestinWORKOUT Gear Lending
Guestroom Design Sensory Welcome Heavenly Bath Breathe
Clutter-free Meetings Performance Meeting Chair
Westin Kids Club Heavenly Spa
98
GLOBAL GROWTH » Expect to open 200 th hotel ho tel this year
121 HOTELS 16 PIPELINE
» 50 50%+ %+ footprint growth over ov er the last last 12 years
40 HOTELS 25 PIPELINE
21 HOTELS 4 PIPELINE 10 HOTELS 1 PIPELINE
SOURCE: STARWOOD INTERNAL PIPELINE REPORTING AS OF 12/31/12 12/31/12
99
SHERATON Globa Glob al Powerho rhou use in in its its Be Best Sh Shape Ever 100
THE WORLD’S GATHERING PLACE INSPIRED BY THE SOCI SOCIAL ALTRAVELER
» Fueling Starwo Starwood od’s growth grow th and and mar arket ket share sh are gains
101
CREATING EXPERIENCES
SHERATON CLUB
» Distingu Distinguishing ishing Sheraton globally with distinctive initiatives » Sh Sherato eraton n Club » Lin Link@Sh k@Sheraton experie experienc nced ed with with Microsoft Microsoft » Sherat Sheraton onFit Fitness ness programmed by Core Perform Performance
» Con Contitinu nuing ing to buil build d momentum witith h new new experiences experiences and revenue-driving initiatives
LINK@SHERATON
» Soc Social ial programming – Sheraton Social Social Ho Hour ur » F& F&B B initiati initiatives ves – Link@ Link@Sheraton SheratonCafé, Co Color lor Your Plate
SHERATON FITNESS
102
LEADING STARWOOD’S GLOBAL GROWTH STARWOOD’S LARGEST BRAND, WIT WITH H LARGEST PIPELINE WITHIN STARWOOD » 90%+ awareness awareness among upscale hotel guests*
EAME 93 HOTELS HOTEL S 26 PIPELINE
NA 207 HOTELS 6 PIPEL PIPELINE INE
» 76 years » 427 hotels » 66 resorts » 69 countries
» 1st international hotel brand in China, India & Middle East
LA 30 HOTELS HOTEL S 6 PIPEL PIPELINE INE
AP 97 HOTE HOTEL LS 63 PIPELINE
» 101 deals deals in the pipeline pipeline » On track to open open 500 hotels by 2015
427 Sheraton Hotels Hotels by the end of 2012; 416 currentl currently y open and 11 more scheduled to open in in 2012 Source: Starwood internal pipeli pipeline ne reporting as of 12/31/12
*Gl obal Upscale Hote *Globa Hotel Study, Jan Ja n. 2011, Lrw
103
FOUR POINTS BY SHE SHERA RATO TON N ABrand with Global Momentum 104
COMFORT ISN’T COMPLICATED INSPIRED INSPI RED BY SELF-SUFFICIENTS SELF-SUFFICIENTS
» Gr Great eat Ho Hotels tels.. Great Rates. » What matters matters most.
105
CREATING EXPERIENCES » Frien Friend dly, au auth then entic tic service » Sty Stylish lish guestro guestroom oms witith h comforta fortable ble beds beds » Local craft craft beer beer ontap » Pr Pro oductiv tive e workspaces » Fr Free ee inter tern net & bottl ttled ed wate water r » Great coff ffee ee » Delic Delicio iou us breakf breakfast ast
AUTHENTIC SERVICE
GUESTROOM / WORK SPACE
COFFEE & BREAK FAST
BEST BREWS
106
WITH 171 HOTELS OPEN AN A ND 89 IN THE PIPELINE, FOUR POINTS IS THE DEFINITION OF GLOBAL 112 Open GROWTH 26 Pipeline
EUROPE, AFRICA, AND MID AN IDD DLE EAST
NORTH AMERICA
18 Open 21 Pipeline ASI A SIAPA APACIF IFIC IC
» 70% chan change in the por portfolio tfolio since 2005, and $1B invested invested in renovations, renovations, conversions and new hotel otels s
29 Open 39 Pipeline LATIN AMERICA
12 Open 3 Pipeline
» The po portfoli rtfolio o has has increas increased by more than than 40% in the past five years » Conv Conversion ersion-f -friend riendly ly format fueling fuel ing continued rapi rapid d growth » 55% of rooms outside the U.S.
Source: Starwood internal pi pipe peline reporting as of 12/31/12
107
ALOFT AL As A s Disruptive in its Category as W, Ad A ddressing a Global Need 108
URBAN COOLIN UNEXPECTED PLACES
INSPIRED BY SELF-EXPRESSERS
» Red Redefinin efining g th the e segment. Inn nnov ovat ative ive design combine bined d wi with prrograms & p services that reflect travelers’ lifestyle » Des Design igned for for the next generation generation of of travelers 109
FAST STEST EST EVER EVER LAUNCH LA UNCH OF A NEW NE W BRA BRAND ND » Aloft hotels: hotels: Any Any tow town, anywhere. » Fastes Fastestt brand brandlaun launch ch ever…17 in 2008, 39 in 2009, 46 in 2010…55 in 2011, 62 in 2012…126 opera op erating ting + pipeline at at end of 2012 » LaunchedGlo Globally bally » Aloft Portland PortlandAirport at Cascade Stati Station on andAloft Nashville--Cool Springs Nashville Springs named to TripAdvisor’s Top 10 Trend Trendie iest st Hotels in the USA 110
GLOBAL GROWTH WIT ITH H 60+ HOTELS IN 10 COUNTRIES, ALOFT IS READY FOR ANY TOWN, ANYWHERE » We bring urban cool to unexpected pla laces, ces, with a global appeal appeal that drives global growth
EUROPE, AFRICA, AND MIDDLE EAST AN
NORTH AMERICA
47 Open 23 Pipeline
3 Open 14 Pipeline
ASI A SIAPA APACIF IFIC IC
10 Open 21 Pipeline LATIN AMERICA
2 Open 6 Pipeline
Source: Starwood internal pipel pipeliine reporting as of 12/31/12
111
ELEMENT
Groundb Groun dbre rea aki king ngApp pproa roach ch Gai Gaining Mo Mom mentum 112
SPACE TO LIVE YOUR LIFE
INSPIRED INSP IRED BY HEAL HEALTHY ACTIVES
» Nat Natu ural ligh light. Open space aces. s. Healtlthy Hea hy op optition ons. s. » Ou Outdo tdoor-insp or-inspired, vibrant vibrant liliving ving and and smart, fresh thinking » Green without compromise ise.. No compromise in in comfor fort,t, qual qu alitity y, convenie venience nce or prrice p
113
EXCEEDING OUR CUSTOMERS DEMANDS » Guest Loy Loyalty Scor Score e at 8.55 8.55 for 2012, 201 2, one of the hig highest hest ratings ratings of Star Starw woodbrands » 81% of guests are much more or somewhat more more positivel positively y influenced by Element’s gree green n initiati initi atives ves versus the competit petition ion » First major major hotel hotel brandto show itits s commititm ment to to the environm envir onment by mandating that that every ho hotel tel pu pursue rsue LEED certification
ELEMENT ARUNDEL MILLS, HANOVER, MARYLAND, USA
114
ELEMENT’S FOOTPRINT TODAY Lexington, MA Las Vegas Summerl erlin, in, NV Houston Vintage Park, TX Arrundel Mills, MD A Denver Park Meadows, Meadows, CO Dallas Dalla s Ft. Worth Airport North, TX Ewing Princeton, NJ New York Times Square West, NY Omaha Midtown Crossing, NE Miami International International Airport, Airport, FL TOMORROW Vaughan Southwest, ON, 2013 Harrison, NJ, 2013 Frankfurt, Germany, 2014 Vancouver Metrotown, BC, 2014 2014 Miami Doral, 2015 2015 Flushing, 2015 Muscat, 2016
ELEMENT HOUSTON, VINTAGE PARK, TEXAS, USA
115
INDIVIDUAL SPIRIT, COLLECTIVE STRENGTH
SPG
BRAND / FIELD FIELD MARKETING & PARTNERSHI PARTNERSHIPS PS
CENTRAL MARKETING DELIVERY
SALES
REVENUE MANAGEMENT
OPERATIONS
THE POWER OF STARW STARWOOD The In The Ind dividual Sp Spiirit of our Br Bra ands Set them Ap Apa art Our Systems, Infrastructure and Global Reach Make them Unstoppable
116
STARW STA RWOOD OOD DRIVE DRIVES S RESUL RESULTS Starwo Sta rwood od Centr Central ally ly influe influences nces 71% of of RoomNights SPG
- Industry leading loyalty program
- 50% 50% occupancy share - elit elite e benefits drive incremental stays and stretch for status
STARWOOD INFLUENCED PROPERTY DIRECT
23% 22%
GLOBAL DISTRIBUTION SERVICES (GDS)
10%
SALES - Global sales sales team team directly drives
25%
over $5B in annu annual revenue revenue - Suite of processes, programs management, tools and resources
DIGITAL CHANNELS
MARKETING
- Distinctive Distinctive lifestyle hotel brands - Best in class field marketing prrograms p - Comprehens prehensive ive digital marketing pllatform p
CUSTOMER CONTACT CENTERS (CCC)
13%
SOURCE: STARWOOD INTERNAL REPORTS YEAR END 2012 * All owned, managed, and franchise hotels hotel s of all Starwood brands whether franchised franchised or not. For information regarding a specific franchised fra nchised brand, see the Franchise Franchise Disclosure Discl osure Document for that Brand. STARWOOD INFLUENCE: Starwood influences roomnights that are delivered deli vered through central channels (centralized call centers, MARS, internal web, external web, GDS), the Starwood Sales Organization (SSO), (SSO) , TeamH TeamHot, and/or SPG. The first-time stays of SPG members whoare enrolled enroll ed by the property are not counted in the Starwood influenced roomnights, unless the roomnights can also be attributed attributed to Starwood central channels, SSO, and/or and/or TeamHot. TeamHot. See end of presentation for Starwood Influence Calculation Calculation Assumptions.
117
STARWOOD PREFERRED GUEST KELLY – SPG PLATINUM MEMBER
118
SPG – THE BEST BES T LOYA LOYALTY PROGRAM PROGRA M IN IN THE BUSI BUSINESS NESS » 54 54% % growth in in member ers s since 2007 » SPG Share Share of Occupancy Occupancy is greater than 50% » Richest elite tier benefits »Innovat vative ive programming strengthens stre ngthens member loyal loyalty ty
Diff Di ffe ere rent ntiiati tion on Buil uild ds Cu Cust stom omer L oyalty
AWARD-WINNING HOTEL COLLECTION » Morelux luxu ury and upscale hotels than other program programs
» 50+ 0+Go Gold ld List awards » 70Tra Trave vel + L eisure award winners
UNIQUE REDEMPTION OPTIONS
RICH PROMOTIONS
» SPG Fligh Flights: Hundreds of airlines, no blackouts
» Campaigns designed to shiftt share and shif drive transaction volume
» SPG Moments: Once in a lifetime experi rience ences that member bers s bid on
SPG AMEX
» Multiple “b “be est travel/affinity card” awards
CUTTING EDGE COMMUNICATIONS
» iPhone App: First hotel loyalty program to offer » Social Social Med Media: ia: Prese Pr esence on Twit Tw ittter, Facebook, etc.
» SPG Cash + Points
119
SPG MOMENTS
V I P tickets ti ckets and excl xclusive usive meet and greets
The Fr The Fra ay Ex Exc clu lus siv ive e Me Mem mber Aft Afte er Party @ The W NY
Premium concert tickets Prem ti ckets with LiveNation
Clinics with professional athletes
120
SPG GROWTH – MEM MEMB BERS NOW FI FILL LL50 50% % OF ROOMS SPG SP G Share Share of Occup Occupancy ancy
40%
2008
45%
2010
50%
2012
121
GLOBAL GROWTH LOCKING GLOBA LOCKING IN LOYALTY AHEAD AHEAD OF CHANGING CHANGI NG TRA TRAVE VEL L PATTERN ERNS S »54 54% % growth in in member ers s since 2007 »47 47% % of SPG SPG member ers s are fromou outside tside the U.S. U.S. »Increased Chinese member base base 64% 64% in 2012 »Consumer ers s gravi gravita tate te toward the brands they know and trust – ou ourr global prresence is p a major advantage
122
SPG MEMBERS AR A RE VALUABLE » A AD DR Premium $38 (25%) » Incidental F&B spend of $11 (34%) » Pl Plati atinum numSPG members are are 26x as profitable as non- non- members » A Am mbassador SPG members are 44x 44x as pro profit fitable able as as non-members » Enroll Enrolled ed mem embers bers are 3x more likel likely y to return to our our hotel ho tels s the following year » Members are more more resili resilient ent in a downturn
RESILIE RESI LIENCE NCE DURI DURING THE DOWNTURN 20%
15.8%
10%
6.2%
3.2% 0% -10% -20%
-9.3% 2009 SPG Nig igh hts
2010 Non-SPG Nig igh hts
123
BRA RAND/ ND/ FI FIELD ELD MARK RKET ETIING & PA PARTNERSHI RTNERSHIPS PS 124
FIELD FIEL D MARK RKETI ETING: NG: STARWOOD’S INTERNAL MARKETING AG A GENCY » Star Starw wood’s internal internal marke arketing ting agency prrovides localized support dedicated p to individual hotel bu business siness needs » Mobilize bilizes s internal and and external external market arketing ing channels channels against short- term need period periods » Currently, 94% 94% of the Starw Starwoo ood d hotel ho tels s in NorthAmeri erica ca participate participate in this opt in program » Delivers on average average $25 for every $1 spent on investm investment ent for parti participating cipating hotels
125
THE POWER OF GLOB GLOBA AL PARTN RTNER ERS S TRAVEL
FINANCIAL PA RTNER RTNERS S
FOOD & B EVERAGE
LIFESTYLE & ENTERTAINMENT
SPORTS & FITNESS
RETAIL
126
CENTRA CENT RAL L MA MARK RKET ETIING DELIVERY 127
ROBUST BRANDED WEBSITES » Fifteen deep inter interactiv active e websit ebsites es in in nine nine lang la nguages uages bring bring brands brands and hotels hotels to life life » Adv dvanc anced ed reservation reservation capability » Intelligent merch erchand andising ising to maxi axim miz ize e awareness awareness and increase conversion » Indus ustry-le try-leadin ading g custom customer service 128
SOCIAL MEDI SOCIA MEDIA A FOSTERS RELATIONSHIPS WITH GUESTS » Ov Over er 3.7M 3.7M fans fans acro across ss leadin leading g social plat platforms formsar aroun ound the world » Indus ustry-lea try-leadin ding g pres presenc ence e with Faceboo Face book pages for every every brand and hotel, ov over er 1,100 1,100 in in all » Deep integration with Fours Foursqu quare and Jeipang » Presen Presence ce on on Twitter and Weibo
» Ratings& Review Reviews s meets key guest need need and improves conversion » Glo Global bal social social mon monitorin itoring g 24/7
129
MOBILE IS FASTEST- GROWING PLATFORM » Acc cclaim laimed ed iOS App » Integr Integrated ated Book oking ing capab capability ility » Ro Robu bust hotel hotel andreso resort rt content » Personaliz alized ed support » Stat State-aw e-aware are fu fun nct ctio ion nality » Mobile web web platform platformdelivers branded brand ed experience experience and supports reser reservati vation ons s onal alll devices
130
CUSTOMER CONTACT CENTERS CENT ERS LEA LEAD D WITH INNOVATIVE SOLUTIONS » Flexib Flexible le platform platforms available available 24/7 24/7 in 24 langu languages ages to drive revenu revenue e and and guest satisfaction » Voice, chat, e-m e-mail, social, social, Facetime Facetime video and other emerging platform platforms
» Global pres presenc ence e su supp pports objectives objecti ves across distri distribution, bution, loyalty, sales, revenue mana anagem gement ent and more more 131
STARW RWOOD OOD SALES ORGANIZATION 132
70% OF STARW RWOOD’ OOD’S S ROOM REVENUE COMES FROM FROM B2B CHANNELS » Mo More re than our fair share of of high-value/ high-volum high-vol ume customer customers’ s’ business across across alll corporate al corporate and leisure leisure segments » Struc Structured tured the the way our clients buy buy with greater scale of coverage coverage and deeper reach » Establish Established ed organ rganiza ization tion in mature and growth market arkets, s, set up to capita capitalilize ze on newtra travel vel landsc landscape and globali globaliza zation tion – revenu reve nue up 12% 12% YOY » Inn nnovative ovative programming focu focused sed on driving drivi ng new business and strengthening strengthening custom cus tomer loyalt loyalty y
133
SELLING THE SELLING THE WAY OUR CUSTOMERS BUY, LEA LEADI DING NG TO INCREASED SHARE » 5,000+ sellers sellers dep eplo loyed yed against agai nst custom customer ers’ s’ teams teams and buyingpatt patterns erns » » » »
Global Div Di vis isio ion nal Clust ster er (m (metro etro-m -mark arket) et) Proper erty ty
» Global reach reach with local local expertise experti se allow allowing ing for for pe p ersonal solutions, increased customer loyalty, and increm incre menta entall growth » Seamless andflexib flexible le experience experie nce at every point point in the selli selling ng process 134
GROWING WITH OUR CUSTOMERS AN A ND PORTFOLIO » Add dding ing resou resources rces in key market markets, s, includ including ing BRI RIC, C, Eastern Eastern Europ Europe, e, South Afr frica ica and more more » Driving bu busin siness ess across borders: » Ov Over er 50% of of busin business ess from ou ourr largest largest multi ultinati nation onal al cus custom tomers occurs occ urs outside thei their r home re regions gions 135
REVENUE REVENU E MA MANA NAGEMENT GEMENT AND OPERATIONS 136
REVENUE MANAGEMENT » Multi-m lti-millio illion n investment in cutting- cutting- edge revenu revenue e management technology » Implementation of effective effe ctive pricing and inventory strategies » Co Corp rpo orate, divis ivision ional, al, regional and area- based RM expert experts s work directly directly wit with h the hotels » Tools and detailed analytics, including market sh share are analysis
TOOLS AND PRODUCTS
GLOBAL TECHNOLOGY INITIATIVE
ANAL YTICS
TRAINING AND COMMUNICATION
137
OPERATIONAL EXCELLENCE » Architectu itecture re and engineering engineer ing sup suppo port rt » Foc Focus us on stro strong ng openings with opera op eratition onal al planning, support supp ort and super ervisi vision on » Lean Op Operatio eration ns » Cen Centralized tralized staf staffing fing, pe p erformance mana anagem gement and benefits administration » Too ools, ls, techn technolog ology, strategy and detailed analytics / reporting
B e d
B e d
D e s k
C l o s e t
T V
G l a s s
C o f f e e /
r B o o a m t h -
C a r t
H a l l w a y
LEAN HOTEL OPERATIONS
ARCHITECTURE AND ENGINEERING
NEW BUILDS AND TRANSITIONS
TRANING AND SERVICE CULTURE
138
FOOD & BEVERAGE » $4.5 billion billion in annual revenu reve nue (over (over 30% of of total hotel revenue) at companypany-operat operated ed hotels
» 3,500 res restau tauran rants ts and and bars systemw systemwide » Enhancedprocu curem rement, ent, optimize op timized d pricing and innovati inno vative ve formats formats and pa p artnerships » Large potential potential sour source ce of incremental increm ental reve revenu nue and prrofits for our properties p » Ded Dedicated icated F& F&B B team& support structure for hotels hotels
REVENUE GROWTH
COST CONTAINMENT
BRANDED CONCEPTS & PROGRAMS
TALENT DEVELOPMENT
139
SUSTAINABILITY & GLOBA GLOBAL CITIZENSHIP » 30% energyred reduc uction tion target tar get and 20 20% % wate ater r reduction target by 2020 2020 » Deliver pro progr gram ams and and tools to mana anage ge energy and water water consumption » Gu Guidanc idance, e, program programm ming and coordination coordination of communit unity y involvement involvement / ph p hilanthropic work (UNICEF,Conservation International)
ENVIRONMENTAL COMMITMENT – 30/20 by 20
DIFFERENTIATORS WITH IMPACT
UNLOCKING POTENTIAL IN OUR COMMUNITIES
[DIVISIONAL INSERT]
140
STARW RWOOD OOD STRATEGY GY:: INDIVIDUAL SPIRIT, COL CO LLECTI ECTIVE VE STRENGTH STRENGTH 141
