starwood hotels: middle east review

7/29/2019 Starwood Hotels: Middle East Review

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2013 STARWOOD HOTELS & RESORTS WORLDWIDE, INC. | Proprietary & Confidential

GUIDO DE WILDE// SVP, REGIONAL DIRECTOR MIDDLE EAST

STARWOOD

IN THE MIDDLE EAST

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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,estimatesor other words or phrases of similar import. Similarly, statements in this releasethat describe the Companys business strategy, outlook, objectives, plans, intentions or goals also are forward-lookingstatements. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties and otherfactors that may cause actual results to differ materially from those anticipated at the time the forward-looking statements aremade. Future results, performance and achievements may be affected by general economic conditions including the severity andduration 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 ofresidential 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 theinternet 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 theirinterpretation), travelers fears of exposure to contagious diseases, risk associated with the level of our indebtedness, riskassociated with potential acquisitions and dispositions, and other circumstances and uncertainties. There can also be noassurance that agreements will be entered into for the hotels in the Companys pipeline and, if entered into, the timing of anyagreement and the opening of the related hotel. These risks and uncertainties are presented in detail in our filings with theSecurities and Exchange Commission. Although we believe the expectations reflected in such forward-looking statements arebased upon reasonable assumptions, we can give no assurance that our expectations will be attained or that results will notmaterially differ. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result ofnew information, future events or otherwise.

Please note that these presentations include non-GAAP financial measures. For definitions of certain terms used herein and apresentation of the most directly comparable financial measure calculated and presented in accordance with GAAP and areconciliation of the differences between the non-GAAP financial measure disclosed and the most comparable financial measurecalculated and presented in accordance with GAAP, please refer to the Companys web site atwww.starwoodhotels.com.corporate/investor_relations.html.


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WELCOMETO DUBAI

A city at the centerof one of the mostdynamic regions inthe world

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MIDDLE EAST

IS A REGIONTHATMATTERS Melting pot of diverse

and complex politics andreligions

Rich and complex history

Growing population

At the crossroadsof globalization

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RICHHISTORY History dates back

to 3500BC

Innovations in language,culture, science

Birthplace of Judaism,Christianity and Islam

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FAST

GROWINGDYNAMICPOPULATION >50% of population under 30

years

1990-2008, populationgrowth rate was higher thanIndia and China, andremains high

Mosaic of over 350M people

The UAEs population is

7.5M

2M in Dubai alone with 5%growth in 2012

Source: OECD/ World Bank 2010; Dubai Statistics Centre

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MIDDLE EAST IS AT THE CROSSROADS OF GLOBALIZATION

Trade between China andArab world and trade withAfrica has increasedtenfold

UAE, Qatar and Saudibecoming important hubs

By 2030, travel into theregion is expected totriple to 149M arrivals

Outbound travel is up400% in last 20 years

Expected to reach 80M

outbound trips annuallyby 2030

Source: UNWTO 26


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NOT JUSTABOUT OIL 60% of worlds total

proven oil reserves

Despite economiccrisis, some of thehighest per capitaincomes globally

Dramatic Growthin inbound andoutbound tourism

Arrivals up over 7% peryear since 2005

Outbound travelup 8% per yearsince 2005

Sources: OPEC; UNWTO 27


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SHEIKH ZAYEDROAD THEN Transformation

of Dubai

Open-Skies policy

Free Economic Zones

Promotion of tourism

600k population in 1993

167 Hotels in 1993

Sources: Dubai Statistics Center; Gulf News 28


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SHEIKH ZAYEDROAD NOW UAE's hospitality market

Revenues of $7.5Bby 2016

+67% over 2011

2.1M population

326 Hotels

Sources: Khaleej Times, UAE; Alpen Capital Hospitality Report; Dubai Statistics Center 29


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OTHERSFOLLOWINGDUBAIS LEADAbu Dhabi focusing on culture

with branches of the

Guggenheim and Louvreopening, along with the ZayedNational Museum

Qatarinvesting $11B in newDoha international Airport, $6Bin Doha Port project and $25B

in other infrastructure Saudi Arabia constructing the

$86B King Abdullah EconomicCity

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STARWOODSMIDDLE EASTADVANTAGE

WESTIN DUBAI MINA SEYAHI BEACH RESORT & MARINA

SHERATON DUBAI MALL OF THE EMIRATES HOTEL

First mover advantage

Strong local brand recognition Deep local relationships

Leading loyalty program andglobal infrastructure

Innovative Food and BeveragePrograms

Best in class talent

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S O G


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STARWOOD HAS BEEN IN THEREGION FOR FIVE DECADES

1966 1982 200919841978

20122010

Sheraton Kuwait Starwoods firsthotel outside of the U.S Starwood enters Qatar andPakistan with Sheraton Entry of W and Aloft brands

Growth in emerging markets opening of Sheraton Dushanbe and

signing of Sheraton Aktobe

Luxury Collection takes overoperation of Grosvenor House

and Al Maha

Debut in UAE and KSA with SheratonDubai Hotel Creek & Towers and

Le Mridien MedinaOpened the first worldwide

reservations office in the region(Bahrain)

Signing of Sheraton Erbil marking Starwoods re-entry

into Iraq after 20 years

FIRST-MOVER ADVANTAGE

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FIRST MOVERADVANTAGE


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OUR EXPERIENCEGIVES US ANADVANTAGE

79 hotels (operating + pipeline)

More than 22,000 rooms in 13 countries

UAE

33 HOTELS 21 OPERATING, 12 PIPELINE

SAUDI ARABIA

15 HOTELS - 9 OPERATING, 6 PIPELINE

OTHER

31 HOTELS - 15 OPERATING, 16 PIPELINE

45 Operating

34 Pipeline (Executed)


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THE LARGEST LUXURY/UPPER UPSCALE HOTEL COMPANYIN THE MIDDLE EAST

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0

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Starwood Marriott Hilton Hyatt

MIDDLE EAST HOTELS


Source: STR Census as of December 2012; Starwood Internal Data 34



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DIVERSE PIPELINE BY BRANDS AND MARKET

Sheraton26%

Le Mridien3%

Westin9%St.

Regis8%

W14%

The LuxuryCollection

9%

Four Points by

Sheraton17%

Aloft11%

Element3%

BY BRAND

34 PIPELINE HOTELS

UAE34%

KSA20%

Levant14%

Iraq9%

Oman9%

Qatar3% Stan

Countries11%

BY MARKET


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ACCELERATINGGROWTH

45 HOTELS TODAY

80 HOTELS IN 2016

100 HOTELS IN 2019


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THE ST. REGIS SAADIYAT ISLAND RESORT

ABU DHABI

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THE ST. REGIS

DOHA

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THE ST. REGIS

ABU DHABI

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20MULTI-B RAND PROJECT DUBA I 40


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3 X DUBAI MUSCAT AMMAN ABU DHABI

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ERBIL, IRAQDUSHANBE, TAJIKISTAN

AKTOBE, KAZAKHSTAN

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OUR BRANDS

RESONATE WELLIN THE MIDDLEEAST

SHERATON KUWAIT AND FOUR POINTS BY SHERATON KUWAIT

SHERATON DUBAI MALL OF THE EMIRATES

Second region after NorthAmerica to have all nine brands

Increasing number ofconversion opportunities

Rejuvenation of Sheraton andLe Mridien with renovations

Expansion of existing properties

to meet high-demand High-levels of guest satisfaction

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DEEPRELATIONSHIPS

BUILT ONDECADESOF TRUST We have a deep understanding

of this part of the world

Right teams in place to deliverthe promise

Strong relationships with someof the most influential royalfamilies

Highly influential royal familiesare some of the most importantowners of the hotels we operate

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TAILWINDFROM OUR

GLOBALPLATFORM:SPG Members based in the

Middle East accounted for

350,000 stays in 2012 SPG community in the

Middle East spends wellabove the global average

SPG accounted for 51%share of occupancy in 2012

21 SPG point millionairesin the region

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GORDON RAMSEY JEAN GEORGES VONGERICHTEN GARY RHODES

IMPACT OFFOOD ANDBEVERAGE Operate 277 Restaurants

and Bars

Relationships with worldclass chefs

F&B accounts for 43% ofregions total revenue in2012

SPG and F&B Integration

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BEST IN CLASSTALENT Associates from over 100

different nationalities, speaking

over 50 languages Approximately 12% of our

workforce are local nationals

House close to 16,000associates in staffaccommodations, serve over 15

million meals per year 20,000 associates by the end of

2013

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ALOFT RIYADH

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AJMAN PALACE,A LUXURY COLLECTIONHOTEL

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W ABU DHABI

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SHERATON DUBAISHEIKH ZAYED ROAD

SHERATON SHARJAH

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STARWOODSMIDDLE EASTADVANTAGE

WESTIN DUBAI MINA SEYAHI BEACH RESORT & MARINA

SHERATON DUBAI MALL OF THE EMIRATES HOTEL

First mover advantage

Strong local brand recognition

Deep local relationships

Leading loyalty program andglobal infrastructure

Innovative Food and BeveragePrograms

Best in class talent

starwood hotels: middle east review

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