starwood asia pacific investor presentation ppt - ap... · indo china, singapore india, maldives,...

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Starwood Asia Pacific Starwood Asia Pacific Investor PresentationInvestor Presentation

June 2010June 2010

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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.

forward-looking statements

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Agenda

Market Trends in Asia Pacific

Starwood Asia PacificWhere we are today

Our growth strategy

Special Focus…Starwood in Greater China

Summary

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Our growth strategy


Summary

Agenda

5

Looking back…2009

Defined by 2 viruses

Financial crisis – Unprecedented and global in scale

H1N1

Impact on hospitality industry

Demand contraction

Cost savings mode

Distressed assets

Downturn is less severe in Asia

Less leverage

Domestic market is more resilient

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Signs of recovery

Rebound in occupancy

Asia, powered by China, is expected to lead Asia out of the downturn

Changing business trends

More Asian guests

Shift from Baby Boomers/Gen X to Gen Y

Personal and customized services

Today…

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Asia Pacific - Market Performance

-40.0

-20.0

0.0

20.0

40.0%

Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10

RevPAR %

OCC%

ADR %

Asia Pacific Market - RevPAR Growth (STR)

Source: Smith Travel Research (STR); Data is for all hotel chains that report into STR

Recovery from 3Q 09 driven by occupancy

% Growth vs STLY

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Our growth strategy


Summary

Agenda

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Managed and Franchised Fees

Americas include Canada and Latin America

85,000 Room Pipeline Breakdown

US

AME

AP

43%

15%

16%Europe

18%

Americas

9%

USAmericas

AP

13%

9%

7%

59% AME

Asia Pacific is the fastest growing division in Starwood with 59% of the 85,000 total room pipeline

12%

Europe

Starwood Global

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We are the largest global luxury/upper upscale hotel company in Asia Pacific

Starwood AP - Our Current Footprint

19 Operating

4 Pipeline

Japan,Korea, Guam

19 Operating

4 Pipeline

South EastAsia

58 Operating

76 Pipeline

GreaterChina

19 Operating

16 Pipeline

Indo China,Singapore

India,Maldives,

Bangladesh

30 Operating

18 Pipeline

PacificRegion

15 Operating

2 Pipeline

* Source: Starwood internal data as of May 2010. Starwood's Asia Pacific total pipeline consists of roughly 170 hotels representing almost 50,000 rooms.

160160Operating Hotels with over 52,000 roomsOperating Hotels with over 52,000 rooms

120 120 Pipeline (Executed)Pipeline (Executed)

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Our Pipeline

120 hotels in the pipeline;Majority in Greater China and managed deals

Sheraton continue to lead as the dominant brand in Asia Pacific

JKG2%

India9%

Indo China11%

Pacific 1%

SEA2%

Greater China 75%

LC 3% aloft

5%W

8%

Westin 15%

FP15%

LM5%

SR6%

Sheraton

43%

F 6%

UJV 1%

M 93%

O/L 0%

RegionRegion BrandBrand ContractContract

Source: Starwood internal data as of May 2010. Based on no. of rooms. Starwood's Asia Pacific total pipeline consists of roughly 170 hotels representing almost 50,000 rooms.

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Our Portfolio Today & TomorrowContinue to maintain an asset - light portfolio in Asia Pacific

TomorrowOperating +

Today’s Pipeline

TodayOperating

Hotels


JKG15%

India12%

Indo China12%

Pacific

8%

SEA10%

Greater China 43%

LC 7%

aloft 0%W

1%

Westin 18%

FP8%

LM14%

SR2%

Sheraton

50%

F 21%

UJV 6%

M 71%

O/L 2%

LC 5%

aloft 3%

W 4%

Westin 16%

FP11%

LM10%

SR4%

Sheraton

47%

F 15%

UJV 4%

M 80%

O/L 1%

JKG10%

India11%

Indo China11%

Pacific

5%

SEA7%

Greater China 56%

Source: Starwood internal data as of May 2010. Based on no. of rooms

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Our Footprint vs Marriott, Hilton, Hyatt

Source: Smith Travel Research (STR) of April 10

160

114

56 56

118

5378

73

0

50

100

150

200

250

300

Starwood Marriott Hilton Hyatt

Operating Pipeline

We have the largest footprint and strongest pipeline compared to key international competitors in AP

AP Footprint – All Segments as of April 2010 (STR)

278

187

134

109

No.

of P

rope

rtie

s –

Ope

ratin

g +

Pipe

line

14

91

4030

12

23

19 47

41

4

14

1

0

20

40

60

80

100

120

140


Under Construction Planning Deferred



Our pipeline is the most robustcompared to our key international competitors in AP

AP Pipeline – All Segments as of April 2010 (STR)

No.

of P

rope

rtie

s –

Pipe

line 118

7378

53

(77%)

(55%) (38%) (23%)

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2010 Anticipated Openings

Opened

Oct 10311 Four PointsChinaFour Points Taian27

IndiaTaiwanChinaChinaChinaThailandIndonesia

Japan TaiwanChinaChinaChinaChinaThailandJapan ChinaChinaChinaIndiaThailandChinaIndiaIndiaChinaChinaTaiwanChinaVietnamChinaChinaIndiaChinaChinaCountry

Dec 10230 SheratonSheraton Bangalore34Dec 10409 WW Taipei33Dec 10378 WestinThe Westin Fuzhou Minjiang32Dec 10350 WestinThe Westin Hefei Baohe31Nov 10490 SheratonSheraton HongKou30Nov 10228 Four PointsFour Points Phuket Makham Bay 29Nov 10232 WW Bali28

Oct 10160 St RegisSt. Regis Osaka26Oct 10160 Le MeridienLe Meridien Taipei25Oct 10333 SheratonSheraton Wenzhou24Sept 10102 SheratonSheraton Huadu23Sept 10483 SheratonSheraton Guangzhou22Aug 10330 SheratonSheraton Wuxi Binhu21Aug 1075 WW Koh Samui20Aug 10287 WestinThe Westin Sendai19Aug 10295 SheratonSheraton Tianjin Binhai18Aug 10152 Luxury CollectionThe Astor Hotel17Jul 10350 SheratonSheraton Zhongshan16Jul 10311 WestinThe Westin Gurgaon15Aug 10258 WestinThe Westin Siray Bay 14Jul 10283 SheratonSheraton Jiangyin13Jun 10135 Aloftaloft Chennai12Jun 10170 Aloftaloft Bengaluru11Jun 10449 Four PointsFour Points Taicang10May 10350 SheratonSheraton Hohhot9Apr 10386 SheratonSheraton Hsinchu8Apr 10239 Four PointsFour Points Lianyungang7Mar 10284 SheratonSheraton Nha Trang6Mar 10250 SheratonSheraton Qiandao Lake5Feb 10275 WestinThe Westin Tianjin 4Feb 10268 WestinThe Westin Mumbai3Jan 10350 WestinThe Westin Shenzhen 2Jan 10348 Le MeridienLe Meridien Xiamen 1

Forecast Rooms Brand

Source: Starwood internal data as of May 2010

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2010 Openings Le Meridien Xiamen, China

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2010 Openings The Westin Mumbai Garden City, India

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2010 Openings Sheraton Qiandao Lake Resort, China Starwood’s

1000th

hotel

Starwood’s 1000th

hotel

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Our Hotels in Asia Pacific Sheraton on the Park, Australia

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Our Hotels in Asia Pacific Sheraton Fiji Resort, Fiji

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Our Hotels in Asia Pacific W Retreat & Spa, Maldives

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Our Hotels in Asia Pacific The St Regis Bali Resort, Indonesia

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Our Hotels in Asia Pacific The St Regis Singapore

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Our Pipeline W Singapore, Sentosa Cove

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Our Pipeline St Regis Osaka, Japan

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Our Pipeline W Retreat & Spa Bali – Seminyak

IndonesiaW Retreat Koh Samui

Thailand

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Our Growth Strategy in Asia Pacific

Drive Outstanding

Results

Drive Outstanding

ResultsBuild Great

Brands

Build Great

Brands

Win With Talent

Win With Talent

Execute BrilliantlyExecute

Brilliantly

Deliver Global Growth

Deliver Global Growth

Our Growth Strategy

Our Growth Strategy

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Our growth strategy


Summary

Agenda

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Emerging Giant….China

1,712 million

39 millionWorld’s 4th largest outbound market

(WTTC, 2015)

53 millionWorld’s largest inbound market

(WTTC, 2015)

9.8%

9.0%

171

1.3 billion

China US

Population 0.3 billion

Cities with over 1m population 37

GDP Growth (2008) 0.4%

Tourism contribution to GDP (2009) N/A

Inbound travel (2008) 58 million

Outbound travel (2008) 40 million

Domestic travel (2008) N/A

Unmatched growth potential in China

Source: IMF, CIA Fact book, JLL, HVS

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Our Journey in Greater ChinaRobust growth with 1st mover advantage in Greater China

Guangzhou CCC Grand OpeningGuangzhou CCC Grand Opening

1st international chain to open a branded hotel in China - The Great Wall Sheraton Hotel Beijing

Opening of Largest Customer Contact Center in Guangzhou

1974

Opening of Sheraton Hong Kong

2005 2009

Opening of 25th hotel in China -Four Points by Sheraton Shenzhen

Best Global Hotel Chain Operating in Greater China –2010 Travel Trade Gazette China Travel Awards

Signed 100th hotel in Greater ChinaSheraton Beijing Dongcheng Hotel

Opening of 50th hotel in China -Sheraton Jinan Hotel, Shandong

20081985 2010

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Geographic Source of Guests

HK3.5%

Taiwan4.3%

Japan8.0%

Pacific0.8%

Other36.9%

Europe11.6%

USA18.7%

China16.2%

20002000

Europe, 11.5%

HK, 5.6%

Other, 11.4%

China, 50.8%

USA, 12.3%

Taiwan, 2.7%

Japan, 3.9%

Pacific, 1.8%

20092009

50.8% of guests in Starwood hotels in China are Chinese

Source: Starwood internal database

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Our Leadership Team - Greater ChinaLocal talents

with average 17 years of service with Starwood

Miguel KoChairman & President, AP

23 Years of Service

Seni

or L

eade

rshi

p

Qian JinSVP Operations, China24 Years of Serv.

Reg

iona

l Ex

com

Reg

iona

l Le

ader

ship

Stephen HoSVP Development29 Years of Serv.

Alice WongSVP Finance13 Years of Serv.

Liu Wei LiVP Design &TS4 Years of Serv.

Harris ChanVP Operations, China32 Years of Serv.

Stephen FordAMD Southern China10 Years of Serv.

Josef DolpAMD Taiwan14 Years of Serv.

Charlie DangAMD Northern China17 Years of Serv.

Ananda ArawwawelaAMD HK & Macau32 Years of Serv.

Michael ProssSnr Dir. HR25 Years of Serv.

Ashley CaiDir. Finance26 Years of Serv.

Wendy HuangSnr Dir. S&M5 Years of Serv.

Helen HaoDir. Revenue6 Years of Serv.

Robert ZhangSnr Dir. Development20 Years of Serv.

Kevin LienSnr Dir. Design6 Years of Serv.

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Our Current Footprint in Greater ChinaWe are the largest luxury/upper upscale

international hotel company in Greater China58 operating and 76 pipeline

1347658Total

440LC

1037Le Meridien

541aloft

541W

862St. Regis

231310Four Points

20128Westin

593029Sheraton

TotalPipelineOperatingBrand

HK, Macau7 Hotels4 operating3 pipeline

HK, Macau7 Hotels4 operating3 pipeline

China118 Hotels

50 operating68 pipeline

China118 Hotels

50 operating68 pipeline

Taiwan9 Hotels4 operating 5 pipeline

Taiwan9 Hotels4 operating 5 pipeline


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29 SHERATON

10 FOUR POINTS

8 WESTIN

7 LE MERIDIEN

2 ST.REGIS

1 W

1 aloft

GuilinHuizhouDongguanShenzhenHong Kong

Shunde

Chung HoHsinchu

ShanghaiZhoushanHangzhou

Qiandao Lake

NanjingChangshu

Macau

Ningbo

Beijing

Tianjin

Taipei

Sanya

Xi’an

Chengdu

Haikou

Shenyang

Xiamen

Urumqi

Jiuzhaigou

ChangshaGuiyang

Guangzhou

Lhasa

Shimei Bay

Jinan Qingdao

Chongqing

Hohhot

Lianyungang

Our Portfolio – Operating Properties


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Huzhou

LuoheJiangyin

Hefei Nine Dragon Hill NingboHangzhou

Wuxi

Shanghai

Chongqing

Nanjing

Guangzhou

Wenzhou

HuizhouZhongshan

Beijing

Tianjin

Sanya

Yilan

Xi’an

Lhasa

Huadu

Macau

Nanchang

QingdaoZhengzhou

Xiamen

Ulaanbaatar

Penghu

Tangshan

Taicang

Tai’an

Yuhuan

Taipei

Yantai

Nanhai

Zhanjiang

Taiyuan

Dalian

Chengdu

Haitang Bay

Kaifeng

Shenzhou Peninsula

Qingyuan

Fuzhou

Weifang

Tufu Bay

30 SHERATON

13 FOUR POINTS

12 WESTIN

6 ST.REGIS

3 LE MERIDIEN

4 W

4 aloft

4 Luxury Collections

Our Portfolio – Pipeline


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HK6%

Macau1%

Taiwan

7%

China86%

aloft 1%

W 2%

Westin 13%

FP14%

LM11%

SR3%

Sheraton

56% F 9%

UJV 5%

M 86%

Sheraton

53%

SR5%

LM7%

FP13%

Westin 13%

W 5%

aloft 2%

LC 2%

F 5%

UJV 3%

M 92%

Our Portfolio Today & TomorrowMore than 90% managed properties and majority new builds

HK3%

Macau10%

Taiwan

5%

China82%

TomorrowOperating +

Today’s Pipeline

TodayOperating

Hotels

Source: Starwood internal data as of May 2010. Based on no. of rooms

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5643

11 17

69

2141

30

0

50

100

150


Operating Pipeline

125

73

52

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Greater China Footprint – All Segments as of April 2010 (STR)

We have a dominant leadership position in Greater China


No.

of P

rope

rtie

s –

Ope

ratin

g +

Pipe

line

38

57

18 18

4

12

6

23

17

6

0

20

40

60

80


Under Construction Planning Deferred



Our pipeline is the most robustcompared to our key international competitors in Greater China

Greater China Pipeline – All Segments as of April 2010 (STR)

No.

of P

rope

rtie

s –

Pipe

line 69

30

41

21(83%)

(60%) (44%) (19%)

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Our Award-Winning Portfolio in Greater China

BEST BUSINESSHOTEL

WESTIN GUANGZHOU

Best New Business Hotel in Asia Pacific

2009 by Business Traveller

45 BEST NEW HOTELS 2009

W HONG KONG

TOP BUSINESS HOTELSIN BEIJING

ST REGIS BEIJING

500 WORLD's BEST HOTELS 2009

WESTIN SHANGHAI ST REGIS SHANGHAI

St REGIS BEIJING

BEST MID RANGE HOTEL BRAND in GREATER CHINA

Owner’s Choice of INTERNATIONAL Hotels Group

GOLD LIST 2008

WESTIN SHANGHAI LE MERIDIEN SHESHAN

Our hotels in Greater China have world-class facilities and cutting edge design

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Our Hotels in Greater ChinaSt Regis Beijing

41

Our Hotels in Greater ChinaSheraton Hong Kong

42

Our Hotels in Greater ChinaSheraton Dameisha Resort

43

Our Hotels in Greater ChinaSheraton Shunde

44

Our Hotels in Greater ChinaLe Royal Meridien Shanghai

45

Our Hotels in Greater ChinaW Hong Kong

46

Our Hotels in Greater ChinaThe Westin Bund Center, Shanghai

47

Our Hotels in Greater ChinaThe Westin Guangzhou

48

Our Hotels in Greater Chinaaloft Beijing Haidian, China

49

Our Hotels in Greater ChinaFour Points By Sheraton Guangzhou

50

Our PipelineSHERATON HUZHOU SOUTH TAI LAKE

Sheraton Shanghai

W SHANGHAI – THE BUND

W GUANGZHOU

51

ALOFT FOSHAN – NANHAI

FOUR POINTS KAIFENG FOUR POINTS QINGDAO, JIAONAN

Our Pipeline

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Our Pipeline

THE ASTOR HOTEL A LUXURY COLLECTION TIANJIN

ST REGIS SANYA YALONG BAY

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Our growth strategy


Summary

Agenda

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Summary

Starwood is the region’s largest global luxury/upper upscale hotel company in Asia Pacific.

With the Asian consumers growing increasingly affluent, they travel more domestically and internationally and are becoming increasingly brand loyal to Starwood’s great brands.

Over the years, we have developed a high performing culture with loyal, motivated and “local smart” people.

We expect our strong pipeline and loyal developer network to further cement our leadership position and footprint expansion.

Localization and expanding customer/consumer loyalty will be critical to our long term success in key markets (esp China, India) as well as globally.

Industry leading fee growth potential in Asia Pacific

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Thank YouThank You

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