STARWOOD HOTELS & RESORTS WORLDWIDE BAIRD GROWTH STOCK CONFERENCE MAY 7, 2015

Transcription

1 STARWOOD OTELS & RESORTS WORLDWIDE BAIRD GROWT STOCK CONFERENCE MAY 7, 2015

2 Forward-Looking Statements This presentation contains forward-looking statements within the meaning of federal securities regulations. 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. Further results, performance and achievements may be affected by general economic conditions including the impact of war and terrorist activity, natural disasters, business and financing conditions (including the condition of credit markets in the U.S. and internationally), foreign exchange fluctuations, cyclicality of the real estate (including residential) and the hotel and vacation ownership businesses, operating risks associated with the hotel, vacation ownership and residential businesses, relationships with associates and labor unions, 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 the introduction of new brand concepts and other risks and uncertainties. These risks and uncertainties are presented in detail in our filings with the Securities and Exchange Commission. There can be no assurance as to the development of future hotels in the Company s pipeline or additional vacation ownership units. Although we believe the expectations reflected in 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. 2

3 Introduction Video A video showcasing Starwood's 10 brands will be played at the beginning of the presentation. For webcast viewers, the video is available on Starwood s investor relations website under the Events & Presentations page at CFO Tom Mangas' commentary will begin after the video, several minutes into the webcast. 3

4 Distinct Global Lifestyle Brands Renowned, high-end lifestyle hospitality brands More than 1,200 properties and 356K rooms Through 2014, increased hotel signings for five consecutive years 34 hotels 7K rooms 16 countries 95 hotels 18K rooms 31 countries Launched April 2015 with Royal Palm South Beach Miami 46 hotels 13K rooms 20 countries 99 hotels 26K rooms 36 countries 201 hotels 76K rooms 36 countries 438 hotels 154K rooms 71 countries 195 hotels 35K rooms 33 countries 93 hotels 16K rooms 15 countries 17 hotels 3K rooms 3 countries Note: Counts as of March 31, 2015; Brand counts exclude vacation ownership 4

5 The Most Global otel Company Starwood spans some 100 countries Geographical diversity positions the company for ebbs and flows of cycles Rising global travel volume and new travel patterns drives demand for Starwood properties AME 7% Europe 11% Starwood Footprint (by rooms) U.S. 44% Rest of Asia 11% Greater China 15% LatAm & Canada 12% ilton U.S. 76% Marriott U.S. 74% yatt U.S. 66% Source: Smith Travel Research as of March 31, 2015; Note that Dominican Republic, Netherlands Antilles, Cayman Islands, and Puerto Rico are categorized under Latin America beginning in

6 Rooms (000s) Leadership in igh Growth Markets Non-U.S. Operating Luxury / Upper Upscale Rooms (in 000s) OT 168 MAR 135 LT Greater China Rest of Asia Middle East & Africa Latin America OT MAR LT OT MAR LT OT MAR LT OT MAR LT Source: Smith Travel Research as of March 31,

7 igh Quality Global Pipeline Outside of U.S. (% of rooms pipeline) Luxury & Upper Upscale (% of rooms pipeline) Starwood 81% Starwood 61% yatt 74% yatt 56% ilton 60% Marriott 39% Marriott 51% ilton 32% Sources: Smith Travel Research as of March 31, 2015; Note: Pipeline represents STR s categories for planning, final planning, and in construction 7

8 Asset Light Transformation Owning hotels to delivering results for owners STARWOOD 2000 STARWOOD TARGET 17% Fees Owned, SVO & Other Owned, SVO & Other Owned, SVO & Other 65% 80% Fees Fees Benefits of Asset Light Fee Model» igh return on invested capital» Low capital requirements, supporting higher margins» Lower cyclicality vs. ownership model Note: Percentages represent earnings before selling, general and administrative expenses and exclude earnings from Bal arbour; fee earnings represent management fees, franchise fees and other income 8

9 Q&A LE MERIDIEN CICAGO OAKBROOK CENTER 9