Full presentation

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WELCOME TO DUBAI

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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,” “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.

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

FRITS VAN PAASSCHEN // CHIEF EXECUTIVE OFFICER

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Shareholder Value Creation Frits van Paasschen 8:30-9:00

Strategy and Outlook Middle East Review Guido de Wilde 9:00-9:40 South Asia Review Dilip Puri 9:40-10:00

Break Starwood Strategy : Individual Spirit and Collective Strength Frits van Paasschen 10:15-11:15

Starwood Investment Proposition Vasant Prabhu 11:15-12:15 Break

3-Year Outlook Vasant Prabhu 12:30-1:00 Q&A All 1:00-1:30

Lunch

Our Agenda Today

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SHAREHOLDER VALUE CREATION AT STARWOOD

THE WESTIN DUBAI MINA SEYAHI BEACH RESORT & MARINA

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Shareholder Value Creation at Starwood »Sustaining Innovation »Delivering Operational Excellence »Growing the System »Executing Asset Light Strategy »Generating Significant Cash


S&P 98%

MAR 164%

HOT 256%

10-Year Total Shareholder Return

Source: Bloomberg. Represents 10-year total shareholder returns from 31-Dec-02 through 31-Dec-12 with monthly returns and reinvestment in security 6

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Sustaining Innovation » W Hotels (1998)

» Westin “Heavenly” (1999)

» Aloft and Element (2008)

» Le Méridien Reinvention (2009)

» Link at Sheraton (2009)

» SPG Transformation (2012)

» Mobile Platform (2012)

» Crossover Rewards (2013)


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Delivering Operational Excellence

AL MAHA DESERT RESORT AND SPA, DUBAI

THE CHATWAL, A LUXURY COLLECTION HOTEL » RPI Gains of nearly 200bps » SPG share of occupancy from 42% to over 50% » Company Operated Hotel GOP Margins +270bps » Owned Hotel Margins +260bps » SG&A per room down over 25% since pre-crisis levels


2009 - 2012

Note: Samsestore 2012 margins vs. Samestore 2007 Margins for Company Operated and Owned/Leased Hotels 8

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5% Net Rooms Growth Growing the System » 5% net rooms growth since 2004 » 100k room, 400 hotel pipeline (30%

future growth) » Fastest growing luxury hotel portfolio » Largest global upper-upscale (5 star)

hotel company

100

200

300

400

Operating Rooms


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Executing Asset-Light Strategy

THE ST. REGIS BAL HARBOUR RESORT

ALOFT LEXINGTON, MA

» Sold 14 hotels since 2009

» Proceeds of over $1.25B

» Average EBITDA multiple over 16x

» Sold and Closed over 73% of Bal Harbour units

» Sell-Out in 2013 likely

» Targeting total sales over $1B

» Starwood Vacation Ownership cash generation of almost $800 million since 2009


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Extraordinary Cash Generation

» Reduced net debt from over $3.5B in 2008 to just over $800M by 2013

» Returned $1.7B to shareholders in since 2008

» Increased Dividend by 150% in 2012; 2% yield

» Repurchased over 6M shares in 2012

» …While investing in our core business to drive growth and build capability


$3,248 $3,523

$2,826

$2,051

$1,511

$811

1/12008

1/12009

1/12010

1/12011

1/12012

1/12013

Net Debt Reduction of $2.4B since 2008

11 Note: Net debt consists of Long-term debt and short term debt, net of cash equivalents and restricted cash

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STARWOOD STRATEGY AND OUTLOOK


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Dramatic Growth in the Global Middle Class » It took 100 years of

economic growth for the Middle Class to reach 1 billion

» 20 years to reach 2 billion

» In next 20 years, the number of people considered Middle Class will reach 5 billion


1890 1990 2010 2030

2 BILLION

5 BILLION

1 BILLION

Source: OECD 13

3

Rapid Urbanization » With the Rise in the

Middle Class and wealth, more people will live in cities

» Global Urbanization – 1950: 30% – 2010: 50% – 2050: 70%


Source: UN World Urbanization Prospects 14

4

Massive Infrastructure Development » More infrastructure will

be built in the next 40 years than in all of human history

» Hotels = Infrastructure


Source: National Intelligence Council 15

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REVOLUTION IN GLOBAL TRAVEL » 3 billion people entering

the global economy

» Regional travel patterns are evolving

» Enormous outbound travel opportunity from Fast Growing Markets

» Rise of the “Mega Traveler


Source: OECD

2011–2030 CAGR

5%

3%

5%

3% Europe

Asia Pacific

Americas

Africa Middle East

200

400

600

800

1,000

1,200

1,400

1,600

1,800

1990 1995 2000 2005 2010 2015 2020 2025 2030

Number of Tourist Arrivals

(in millions)

TOURIST ARRIVALS BY ORIGIN

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Starwood: the Best Positioned Hotel Company to Capitalize on Secular Growth Trends in Travel

SHERATON DUBAI MALL OF THE EMIRATES HOTEL

SHERATON ADDIS

» Leading Global Hotel Company in High Growth Markets

» Best Global High-End Lodging Brands

» High Quality Global Pipeline

» High Value Global Owned Hotel Portfolio

» Unmatched Global Platform

» Extraordinary Cash Generation Potential


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STARWOOD STRATEGY: 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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Starwood Outlook

WESTIN DUBAI MINA SEYAHI BEACH RESORT & MARINA

» Secular demand gains in Growth Markets » Below-trend supply growth in Mature Markets » Sharp rebound in owned hotel profits » Significant cash generation from hotel operations,

asset sales and timeshare

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Starwood 3-Year Outlook

»5-7% annual RevPAR growth achievable 2012-2015 with continued cyclical recovery

»10-12% annual EBITDA growth & 16-20% annual EPS Growth

»$3.0B to $3.3B of operating cash flow and balance sheet capacity

»80/20 Asset Light goal by 2016 could generate ~$3B in cash

»Significant capacity to fund growth investments and return cash to shareholders over next three years


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GUIDO DE WILDE // SVP, REGIONAL DIRECTOR – MIDDLE EAST

STARWOOD IN THE MIDDLE EAST

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WELCOME TO DUBAI مرحبا بكم في دبي» A city at the center

of one of the most dynamic regions in the world

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MIDDLE EAST IS A REGION THAT MATTERS » Melting pot of diverse

and complex politics and religions

» Rich and complex history » Growing population » At the crossroads

of globalization

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RICH HISTORY » History dates back

to 3500BC » Innovations in language,

culture, science » Birthplace of Judaism,

Christianity and Islam

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FAST GROWING DYNAMIC POPULATION » >50% of population under 30

years » 1990-2008, population

growth rate was higher than India and China, and remains high

» Mosaic of over 350M people » The UAE’s population is

7.5M » 2M in Dubai alone with 5%

growth in 2012

Source: OECD/ World Bank 2010; Dubai Statistics Centre 25

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MIDDLE EAST IS AT THE CROSSROADS OF GLOBALIZATION

» Trade between China and Arab world and trade with Africa has increased tenfold

» UAE, Qatar and Saudi becoming important hubs

» By 2030, travel into the region is expected to triple to 149M arrivals

» Outbound travel is up 400% in last 20 years

» Expected to reach 80M outbound trips annually by 2030

Source: UNWTO 26

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NOT JUST ABOUT OIL » 60% of world’s total

proven oil reserves » Despite economic

crisis, some of the highest per capita incomes globally

» Dramatic Growth in inbound and outbound tourism » Arrivals up over 7% per

year since 2005 » Outbound travel

up 8% per year since 2005

Sources: OPEC; UNWTO 27

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SHEIKH ZAYED ROAD – 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 ZAYED ROAD – NOW » UAE's hospitality market

» Revenues of $7.5B by 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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OTHERS FOLLOWING DUBAI’S LEAD » Abu Dhabi focusing on culture

with branches of the Guggenheim and Louvre opening, along with the Zayed National Museum

» Qatar investing $11B in new Doha international Airport, $6B in Doha Port project and $25B in other infrastructure

» Saudi Arabia constructing the $86B King Abdullah Economic City

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STARWOOD’S MIDDLE EAST ADVANTAGE



» First mover advantage » Strong local brand recognition » Deep local relationships » Leading loyalty program and

global infrastructure » Innovative Food and Beverage

Programs » Best in class talent

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STARWOOD HAS BEEN IN THE REGION FOR FIVE DECADES

1966 1982 2009 1984 1978 2012 2010

Sheraton Kuwait – Starwood’s first hotel outside of the U.S

Starwood enters Qatar and Pakistan with Sheraton Entry of W and Aloft brands

Growth in emerging markets – opening of Sheraton Dushanbe and

signing of Sheraton Aktobe

Luxury Collection takes over operation of Grosvenor House

and Al Maha

Debut in UAE and KSA with Sheraton Dubai Hotel Creek & Towers and

Le Méridien Medina

Opened the first worldwide reservations office in the region

(Bahrain)

Signing of Sheraton Erbil – marking Starwood’s re-entry

into Iraq after 20 years

FIRST-MOVER ADVANTAGE

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OUR EXPERIENCE GIVES US AN ADVANTAGE » 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 COMPANY IN THE MIDDLE EAST

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25 22 11

0

10

20

30

40

50

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

Sheraton 26%

Le Méridien 3%

Westin 9% St.

Regis 8% W

14% The Luxury Collection

9%

Four Points by Sheraton

17%

Aloft 11%

Element 3%

BY BRAND

34 PIPELINE HOTELS

UAE 34%

KSA 20%

Levant 14%

Iraq 9%

Oman 9%

Qatar 3% “Stan”

Countries 11%

BY MARKET


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ACCELERATING GROWTH

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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MULTI-BRAND PROJECT – DUBAI 40

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3 X DUBAI MUSCAT AMMAN ABU DHABI

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ERBIL, IRAQ DUSHANBE, TAJIKISTAN

AKTOBE, KAZAKHSTAN

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OUR BRANDS RESONATE WELL IN THE MIDDLE EAST

SHERATON KUWAIT AND FOUR POINTS BY SHERATON KUWAIT

SHERATON DUBAI MALL OF THE EMIRATES

» Second region after North America to have all nine brands

» Increasing number of conversion opportunities

» Rejuvenation of Sheraton and Le Méridien with renovations

» Expansion of existing properties to meet high-demand

» High-levels of guest satisfaction

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DEEP RELATIONSHIPS BUILT ON DECADES OF TRUST » We have a deep understanding

of this part of the world » Right teams in place to deliver

the promise » Strong relationships with some

of the most influential royal families

» Highly influential royal families are some of the most important owners of the hotels we operate

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TAILWIND FROM OUR GLOBAL PLATFORM: SPG » Members based in the

Middle East accounted for 350,000 stays in 2012

» SPG community in the Middle East spends well above the global average

» SPG accounted for 51% share of occupancy in 2012

» 21 SPG point “millionaires” in the region

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GORDON RAMSEY JEAN GEORGES VONGERICHTEN GARY RHODES

IMPACT OF FOOD AND BEVERAGE » Operate 277 Restaurants

and Bars » Relationships with world

class chefs » F&B accounts for 43% of

regions total revenue in 2012

» SPG and F&B Integration

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BEST IN CLASS TALENT » Associates from over 100

different nationalities, speaking over 50 languages

» Approximately 12% of our workforce are local nationals

» House close to 16,000 associates in staff accommodations, 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 COLLECTION HOTEL

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W ABU DHABI

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SHERATON DUBAI SHEIKH ZAYED ROAD

SHERATON SHARJAH

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STARWOOD’S MIDDLE EAST ADVANTAGE



» First mover advantage » Strong local brand recognition » Deep local relationships » Leading loyalty program and

global infrastructure » Innovative Food and Beverage

Programs » Best in class talent

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DILIP PURI // MANAGING DIRECTOR, INDIA & REGIONAL VICE PRESIDENT, SOUTH ASIA

STARWOOD IN SOUTH ASIA

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ANCHORED BY INDIA, SOUTH ASIA IS A REGION OF OPPORTUNITY » India GDP expected to grow 8% for next 40 years

» Moving from 10th largest global economy to 6th largest by 2017

» On track to become world’s 5th largest consumer market in 2030

» Recent government reforms improving the outlook » Central bank easing interest rates » Raising caps on Foreign Direct Investment in certain

sectors: Retail, Aviation, Insurance

W MUMBAI

Sources: World Bank, Global Business Travel Association ("GBTA"), McKinsey “Rise of the Indian Consumer”, CAPA India, HVS T&O report 2012 54

LARGE AND GROWING TRAVEL MARKET » Population of 1.4B across region, growing faster

than China » Travel and tourism is over 6% of India’s GDP1

» Arrivals to India at 5.8M, growing at 12% rate » 13M outbound travelers in 2011, growing to 50M by

2020 » Total domestic traffic at all Indian airports is forecast to

grow from 105M to 356M by 2021 » Sri Lanka and Maldives are among the top 10

destinations for 2013 » Bhutan and Nepal emerging as fast growing

resort markets SHERATON BANGALORE

Sources: World Travel & Tourism Council's (WTTC) Economic Impact 2012; CAPA India 55

STARWOOD’S SOUTH ASIA ADVANTAGE

LE MERIDIEN NEW DELHI

SHERATON MALDIVES FULL MOON RESORT & SPA

» First mover advantage » Strong local brand recognition » Locally smart regional team and

local infrastructure » Leading loyalty program » Best in class talent programs » Innovative food and beverage

programs

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OUR FIRST-MOVER ADVANTAGE

» Opened 1st Westin in India

» 2009: Launched Four Points in India with 2 new openings

» Signed 1st Westin management contract ; 1st new-build non-ITC hotel in India

» Acquisition of Le Méridien brand globally; Added 8 Le Méridiens to India portfolio

» Launched Aloft in India with 2 new openings

» 1973: 1st Sheraton in India - Oberoi Sheraton, Mumbai

» 1979: Partnership with ITC » Established Starwood Sales Office

» Opened India Customer Contact Center in Gurgaon

2010 2005 2011 1973 1979 2009

» Opening of Sheraton in Bangalore (1st managed Sheraton; non-ITC)

2007 2012

» Debut into Sri Lanka with signing of Sheraton and Four Points

» Expansion in Bangladesh with signing of Sheraton and Le Méridien


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OUR FIRST MOVER ADVANTAGE HAS ALLOWED US TO BUILD A SIGNIFICANT FOOTPRINT ACROSS SOUTH ASIA » 69 hotels (operating + pipeline) » More than 16,300 rooms in 6 countries

India

Bhutan

Bangladesh

Sri Lanka

Maldives

38 Operating

31 Pipeline (Executed)

INDIA 61 HOTELS – 35 OPERATING, 26 PIPELINE

OTHER SOUTH ASIA 8 HOTELS - 3 OPERATING, 5 PIPELINE

Total 69 HOTELS - 38 OPERATING, 31 PIPELINE

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STARWOOD IS THE LARGEST INTERNATIONAL HIGH-END HOTEL COMPANY IN SOUTH ASIA

Source: STR Census as of December 2012,Upper-Upscale and Luxury Rooms 7


0123456789

Rooms (000’s)

Upper Upscale/ Luxury Rooms

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DIVERSIFIED FOOTPRINT ACROSS ALL BRANDS

Source: Starwood internal data as of March 1, 2013

Four Points

9% Aloft 7%

Le Méridien 16%

Westin 18%

Sheraton 22%

Luxury Collection

18%

W 8%

St. Regis 2%

Four Points

6% Aloft 7%

Le Méridien 18%

Westin 19% Sheraton

13%

Luxury Collection

36%

W 1%

PIPELINE + OPERATING ROOMS

8

OPERATING ROOMS


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BROAD REACH ACROSS PRIMARY AND SECONDARY CITIES IN INDIA » Operating in 21 cities & 14 states

» 8 new cities in pipeline » Strong penetration in Tier II & III

markets with Four Points and Aloft brands » 8 operating hotels with another 5 expected

openings in 2013 and a robust pipeline » Strong distribution including all upper-

upscale brands in key Tier I markets » 14 Starwood hotels in Delhi NCR » 4 cities with more than 6 Starwood hotels » 6 cities with operating and pipeline hotels

» Growth in resort locations » Growing from one property to 6 by 2015-16

Madhya Pradesh

Maharashtra

Andhra Pradesh

Orissa

Jharkhand

Bihar

Uttar Pradesh

Jammu & Kashmir

Himachal Pradesh

Chhattisgarh

Tamil Nadu

Karnataka

Gujarat

Rajasthan

Punjab

Haryana

Uttaranchal

West Bengal

Assam

Meghalaya

Pondicherry

Goa

Operating

Pipeline

Operating + Pipeline

9


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OPENINGS IN 2013 & 2014 SHERATON CHANDIGARH HOTEL 177 ROOMS, 2013

SHERATON GREATER NOIDA HOTEL 267 ROOMS, 2014

SHERATON BANGALORE WHITEFIELD HOTEL & CONVENTION CENTER 325 ROOMS, 2014

THE WESTIN CHENNAI VELACHERY 215 ROOMS, OPEN FEB 2013

THE WESTIN BEKAL RESORT & SPA 156 ROOMS, OPENING 2014

LE MERIDIEN MAHABALESHWAR RESORT & SPA 126 ROOMS, OPENING IN 2013

10


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OPENINGS IN 2013 & 2014 FOUR POINTS BY SHERATON GURGAON FARIDABAD ROAD 154 ROOMS, 2014

ALOFT AHMEDABAD SG ROAD 176 ROOMS, 2013

W RETREAT & SPA GOA 105 ROOMS, 2014

ALOFT BENGALURU CESSNA BUSINESS PARK 190 ROOMS, OPENING 2013

ALOFT NEW DELHI AEROCITY 200 ROOMS, OPENING 2014

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STRONG LOCAL BRAND RECOGNITION

2011 & 2012 BEST HOTEL COMPANY (WORLD) – Travel & Leisure BEST BRAND DEVELOPMENT ACROSS CHAIN – SATTE FASTEST GROWING HOTEL CHAIN 2012 – Today’s Traveller

2011 & 2012 FAVORITE LOYALTY PROGRAM – Conde Nast Traveler India Reader’s Choice 2012 BEST HOTEL LOYALTY PROGRAM – World Travel Awards 2012 FAVORITE HOTEL LOYALTY PROGRAM – Travel & Leisure

2011 BEST NEW OPENING HOTEL (UPSCALE) SHERATON BANGALORE – HICSA

BEST INTERNATIONAL RESORT – W MALDIVES RETREAT &SPA – Lonely Planet

2010 BEST NEW OPENING HOTEL (LUXURY ) – WESTIN MUMBAI – HICSA BEST NEW OPENING SPA (HOTEL) HEAVENLY SPA – WESTIN MUMBAI – ASIA SPA BEST HOTEL FOR BUSINESS TRAVELERS ( WOMEN) RUNNERS UP WESTIN MUMBAI – Travel & Leisure FAVORITE NEW OPENING HOTEL (INDIA) – 3rd WESTIN GURGAON – Conde Nast Traveler India Reader’s Choice TOP 25 TRENDIEST HOTELS – WESTIN HYDERABAD – Tripadvisor

TOP 25 TRENDIEST HOTELS – Tripadvisor

TOP 25 TRENDIEST HOTELS – LE MERIDIEN NEW DELHI – Tripadvisor BEST CONVENTION HOTEL – LE MERIDIEN KOCHI – National Tourism Awards

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Westin Brand in South Asia outperforms competition

WESTIN BRAND LAUNCH » First Westin resort opened

in 2007 with 4 successive Westin openings in the next 18 months

» Westin makes history as the fastest international brand launch in Indian hospitality

» Superior RevPar Index and Margin Delivery

» 6 operational and 5 hotels in pipeline in India

Westin India Footprint

2007 Opened The Westin Sohna Resort & Spa

2009 Opened The Westin Pune Koregaon Park The Westin Hyderabad Mindspace

2010 Opened The Westin Mumbai Garden City The Westin Gurgaon, New Delhi

2013 Open The Westin Chennai Velachery

2014 Opening The Westin Bekal Resort & Spa

2015/16 Opening The Westin Jaipur, Infotech City

The Westin Kolkata The Westin Khandala Resort & Spa

The Westin Noida Delhi NCR

84.5 96.8 111.7

69% 70%

75%

65%66%67%68%69%70%71%72%73%74%75%76%

0

20

40

60

80

100

120

2010 2011 2012

RPI SPG Occ %

13

STRONG LOCAL BRAND RECOGNITION

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LOCAL LEADERSHIP SUPPORTED BY LOCAL INFRASTRUCTURE

STARWOOD SALES OFFICE IN INDIA (EXISTING AND EXPANSION)

NEW REGIONAL OFFICE IN GURGAON

» Local operations and development team with deep experience

» Sales offices located across region » 8 regional offices open, with

3 additional planned » New regional office in Gurgaon » Selling to local and international

businesses » Starwood’s 9th Global Customer

Contact Center and the 4th in Asia-Pacific

14 66

STRONG AND RELEVANT LOYALTY PROGRAM » 2nd Fastest growing active

member base in Asia Pacific » Local business - India is the

leading SPG feeder market for India hotels by members & stays

» 27% growth in active membership and 37% growth in SPG enrollment since 2011

» Strong recognition in India – through readers choice awards from Conde Nast, Travel & Leisure etc.

15 67

BEST IN CLASS TALENT

Regional Team – “Play as a Team” offsite in Jaipur

Regional Team with Starwood Senior Leadership Team

» Graduate Management Program (GMAP)

» Development of strong internal & external bench strength

» Starwood Class - 12 months internship programme in Starwood properties

» Cross Exposure & International Work Experience Program

16 68

INNOVATIVE F&B PROGRAMS

THE WESTIN GURGAON, NEW DELHI – “SEASONAL TASTES”

THE WESTIN HYDERABAD MINDSPACE – ”PREGO” - THE ITALIAN DESTINATION

» Eat Drink & More – dining loyalty program with strong pan-India membership enrollment

» SPG Restaurant & Bars – loyalty and enrollment through F&B

» Award winning Branded Restaurant Concepts across all Starwood brands – Prego, Eest, Bene, Favolla, Kangan, Seasonal Tastes etc.

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MUMBAI

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SHERATON CHANDIGARH HOTEL

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LE MERIDIEN MAHABALESHWAR RESORT & SPA

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LE MERIDIEN MAHABALESHWAR RESORT & SPA WESTIN CHENNAI

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STARWOOD’S SOUTH ASIA ADVANTAGE

LE MERIDIEN NEW DELHI

SHERATON MALDIVES FULL MOON RESORT & SPA

» First mover advantage » Strong local brand recognition » Locally smart regional team and

local infrastructure » Leading loyalty program » Best in class talent programs » Innovative food and beverage

programs

74


FRITS VAN PAASSCHEN // CHIEF EXECUTIVE OFFICER

STARWOOD STRATEGY

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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

76

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


LUXURY

» Personal, Instinctive, Renewal


» Warm, Connected, Community


» Chic, Cultured, Discovery


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


SELECT SERVICE

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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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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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ST. REGIS Redefining Luxury, Leading the Competition

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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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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

82

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

83

THE LUXURY COLLECTION 85 Unique and Celebrated Hotels

84

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

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

2013 – 2015 Cusco, Dalian, Dubai, Hangzhou, Koh Samui, Nanjing, Nanning, San Antonio, Seminyak, Suzhou, Xiamen



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


87

W HOTELS A Global Brand No One Comes Close to Replicating

88

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

89

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

90

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



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


91

LE MERIDIEN The Power of Starwood Transforms a Brand

92

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

93

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

94

EUROPE

NORTH AMERICA

AFRICA & MIDDLE EAST

ASIA PACIFIC

11 Hotels 4 Pipeline




LATIN AMERICA

2 Hotels

GLOBAL GROWTH AN INTERNATIONAL PORTFOLIO OF ~ 100 HOTELS, WITH GLOBAL DEVELOPMENT OPPORTUNITY


95

WESTIN Category Killer in North America Growing Globally

96

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

97

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

98

GLOBAL GROWTH » Expect to open 200th

hotel this year » 50%+ footprint growth

over the last 12 years

121 HOTELS 16 PIPELINE





99

SHERATON Global Powerhouse in its Best Shape Ever

100

THE WORLD’S GATHERING PLACE INSPIRED BY THE SOCIAL TRAVELER

» Fueling Starwood’s growth and market share gains

101

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

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


103

FOUR POINTS BY SHERATON A Brand with Global Momentum

104

COMFORT ISN’T COMPLICATED INSPIRED BY SELF-SUFFICIENTS

» Great Hotels. Great Rates.

» What matters most.

105

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

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

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

108

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

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

110

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

111

ELEMENT Groundbreaking Approach Gaining Momentum

112

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

113

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

114

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

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

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.

117

KELLY – SPG PLATINUM MEMBER

STARWOOD PREFERRED GUEST

118

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

119

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

SPG GROWTH – MEMBERS NOW FILL 50% OF ROOMS

40% 45% 50%

2008 2010 2012

SPG Share of Occupancy

121

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

122

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

BRAND/ FIELD MARKETING & PARTNERSHIPS

124

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

125

THE POWER OF GLOBAL PARTNERS

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

126

CENTRAL MARKETING DELIVERY

127

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

128

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

129

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

130

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

131

STARWOOD SALES ORGANIZATION

132

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

133

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

134

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

REVENUE MANAGEMENT AND OPERATIONS

136

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

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

138

http://www.starwoodassetlibrary.com/web/0/5026/low/YXAxNDUxZXg5LmpwZw__/who1451ex.5026.jpg

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

139

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)

140

STARWOOD STRATEGY: INDIVIDUAL SPIRIT, COLLECTIVE STRENGTH

141


THE STARWOOD INVESTMENT PROPOSITION

VASANT PRABHU // VICE CHAIRMAN AND CHIEF FINANCIAL OFFICER

142

The Starwood Transformation

17%

Owning Hotels Owning Relationships

STARWOOD 2000

Fees

62% 80% Fees Fees

Owned/ SVO/Other

TRANSFORMING EVENTS » Sold 122 Owned hotels since 2000 for $8.3 billion » Transforming transaction: Sale of 33 hotels (16k rooms) to Host in 2006 for $4.1 billion; distribution of $2.8 billion

to shareholders

STARWOOD 2012 2016 TARGET

Note: Percentages represent Earnings before selling, general and administrative expenses and exclude earnings from Bal Harbour Fee earnings represents Management fees, Franchise fee and Other Income

Owned/ SVO/Other

Owned/ SVO/Other

143


37% 63%

U.S Centric Global Enterprise

STARWOOD 2000

Non U.S. 56% 44% 80%

20%

TRANSFORMING EVENTS » Added 492 net Managed and Franchised hotels (139k rooms) since 2000, 63% (88k rooms) outside the U.S. » Transforming transaction: Acquisition of Le Méridien, 122 hotels (32k rooms), 95% non-U.S., ~$50M fees for $250M

STARWOOD 2012 TARGET

Note: Percentages represent hotel fee business; pro forma for implied fee on owned hotel gross operating revenue

U.S. Non U.S. U.S. Non U.S.

U.S.

144

The Starwood Transformation Price Point Segmentation Lifestyle Segmentation

» Uncompromising » Address » Bespoke

» Flirty » Insider » Escape

» Culture » Indigenous » Experience

» Warm » Comforting » Connections

» Personal » Instinctive » Renewal

» Chic » Cultured » Discovery

» Honest » Uncomplicated » Comfort

» Sassy » Refreshing » Oasis

» Smart » Renewing » Haven

Starwood Preferred Guest Transformation

2012

Launch of W 1998

Westin “Heavenly” Launch 1999

Sheraton Revitalization 2007

Launch of Aloft and Element 2008

Global Expansion of W 2009

Crossover Rewards 2013

TRACK RECORD OF INNOVATION

145

Results


»Higher Growth Trajectory »Lower Cyclicality »Higher Margins »Higher Capital Efficiency »Significant Cash Generation

Superior Shareholder Value Creation

146


S&P 98%

MAR 164%

HOT 256%

10-Year Total Shareholder Return

Superior Shareholder Value Creation

Source: Bloomberg. Represents 10-year total shareholder returns from 31-Dec-02 through 31-Dec-12 with monthly returns and reinvestment in security 147

The Starwood Investment Proposition » Leading Global Hotel Company in High Growth Markets

» Best Global High End Lodging Brands





LE ROYAL MERIDIEN ABU DHABI

SHERATON ABU DHABI HOTEL & RESORT

148

The Most Global Hotel Company

As of 31-Dec-12

1,134 Properties and 335,415 Rooms in Nearly 100 Countries

LEADING HOTEL COMPANY IN HIGH GROWTH MARKETS

U.S. 47%

Starwood

U.S. 78%

Hilton

U.S. 69%

Hyatt

U.S. 78%

Marriott

(Rooms)

Greater China Asia Europe Africa / Middle East Latin America / Canada 149

Upper-Upscale,

75%

Geographical ly Wel l Balanced High End Hotel Platform

As of 31-Dec-12

U.S. 44%

Fees by Brand Fees by Region


Upper Upscale: Westin, Sheraton, Le Méridien

Luxury: W Hotels, St. Regis, Luxury Collection

Select Serve: Aloft, Element, Four Points

Greater China Asia Europe

Africa / Middle East Latin America / Canada

150

Leadership in High Growth Markets

36 20 9 9

HOT MAR HLT H31 18 18 15

HOT MAR HLT H

GREATER CHINA

21 11 16 5

HOT MAR HLT H

MIDDLE EAST / AFRICA ASIA (EX GREATER CHINA)

13 9 6 3

HOT MAR HLT H

LATIN AMERICA

Room

s (00

0s)

Sources: Smith Travel Research as of December 2012, company data

41

102

104

155

H

MAR

HLT

HOT

Non-U.S. Operating Luxury / Upper Upscale Rooms (in 000s)


151

The World is Changing in our Favor

2011–2030 CAGR

5%

3%

5%

3% Europe

Asia Pacific

Americas

Africa Middle East

200

400

600

800

1,000

1,200

1,400

1,600

1,800

1990 1995 2000 2005 2010 2015 2020 2025 2030

Num

ber o

f To

urist

Arri

vals

(in

milli

ons)

TOURIST ARRIVALS BY ORIGIN » Our global footprint positions

us to take advantage of changing global travel patterns

» 3 billion people entering the global economy

» Regional travel patterns are evolving

» Enormous outbound travel opportunity from Growth Markets

» Rise of the “Mega Traveler”

Source: World Tourism Organization UNWTO Tourism Highlights 2012 Edition; UNWTO “Tourism towards 2030”


152

Americas Division

» Joined Starwood through Vistana Resorts in 1989

» Co-President of Americas

Sergio Rivera Osvaldo Librizzi

» Joined Starwood in 1975 at the Sheraton Buenos Aires

» Co-President of Americas


Current Pipeline implies growth of +10%

St. Regis Luxury Collection W Le Méridien Westin Sheraton Four Points

by Sheraton Aloft Element Other Total Operating

United States Hotels 10 13 26 8 102 186 87 45 10 3 490 Rooms 2,294 3,912 8,245 2,113 44,538 69,113 13,814 6,607 1,641 561 152,838 Latin America & Canada Hotels 4 10 4 5 29 51 37 4 - - 144 Rooms 558 719 742 628 10,087 17,621 5,682 559 - - 36,596

As of 31-Dec-12 153

Asia Pacific Division

Stephen Ho

» Joined Starwood at Sheraton Brunei in 1981

» President of Asia Pacific



Qian Jin



China Hotels 5 4 1 7 15 55 17 5 - - 109 Rooms 1,380 811 392 2,535 5,341 22,715 5,293 1,023 - - 39,490 Asia Hotels 4 17 7 22 25 42 12 5 - - 134 Rooms 812 4,270 1,520 5,487 7,788 14,634 2,958 860 - - 38,329

» Joined Starwood at Sheraton Shanghai in 1986

» President of Greater China

As of 31-Dec-12 154

Europe, Africa and the Middle East (EAME)

» Joined Starwood at Sheraton Brussels in 1982

» President of EAME since

Guido de Wilde Hassan Ahdab

» Joined Le Méridien in 1977

» Vice-President, Regional Director of Operations, Africa & Indian Ocean

» Joined Sheraton in 1983 in Belgium and relocated to Bahrain in 1984

» SVP, Regional Director – Middle East



Roeland Vos



Europe Hotels 4 36 5 26 18 61 11 2 - 1 164 Rooms 484 5,270 1,029 7,630 5,923 16,913 1,848 402 - 165 39,664 Africa & Middle East Hotels 3 5 1 28 3 32 7 1 - - 80 Rooms 885 1,384 441 6,954 949 8,788 1,329 408 - - 21,138

As of 31-Dec-12 155

AL MAHA DESERT RESORT & SPA, DUBAI

ALOFT ABU DHABI







156

Best Global High End Lodging Brands

Source: Smith Travel Research, Company reports. Third party logos displayed are the trademarks of their respective third party owners. Such logos are referenced for informational purposes only and not intended to indicate any affiliation, association, or endorsement.

BEST GLOBAL LODGING BRANDS

35K 59%

Luxu

ry

Starwood

Uppe

r Ups

cale

% Rooms Outside

U.S.

251K 54%

Marriott

50K 52%

Hilton

18K 51%

Hyatt

29K 64%

249K 31%

245K 39%

74K 30%

% Rooms Outside

U.S.

157

http://www.marriott.com/marriott-hotels-resorts/travel.mi

http://www.marriott.com/renaissance-hotel/travel.mi

http://www.marriott.com/autograph-collection-hotel/travel.mi

http://www.marriott.com/hotels/travel/dalgt-gaylord-texan-resort-and-convention-center/

Fastest Growing Luxury Brand Portfol io BEST GLOBAL LODGING BRANDS

Starwood Luxury Brands » Added 17k net luxury rooms globally since 2007 » W, the most successful new brand launch in the hotel industry, now at 44 hotels globally » St. Regis has grown from 1 iconic New York hotel to 30 hotels since 1999 » Luxury Collection offers unique experiences in over 80 locations across 30 countries

-

10

20

30

40

50

60

2007 2012 -

10

20

30

40

50

60

2007 2012

HOT Luxury Brands

Room

s (00

0s)

-

10

20

30

40

50

60

2007 2012

Room

s (00

0s)

Room

s (00

0s)

Four Seasons MAR Luxury Brands

Source: Smith Travel Research, Luxury Hotel Rooms. 2007 MAR pro forma for JW Marriott

+ 92%

+ 18%

+ 32%

158

Largest Global Portfol io of Upper-Upscale Brands


Starwood Upper-Upscale Brands » 250K Upper-Upscale Rooms globally in

89 countries » Sheraton: Leading Global five-star brand,

with more rooms outside the U.S. and Europe than any other competitor

» Westin: Top North American Upper-Upscale brand expanding rapidly outside the U.S.

» Le Méridien: With deep roots in Europe, Africa and the Middle East, re-energized into a unique and compelling global brand since 2007

240

245

250

HOT UpperUpscale

Hilton UpperUpscale

MAR UpperUpscale

2012

Room

s (00

0s)

Source: Smith Travel Research, Upper Upscale Hotel Rooms 159

Different iated Select Serve Brands Growing Global ly

05

101520253035404550

2007 2012

Four Points Aloft

Room

s (00

0s)

Starwood Select Serve Brands » Rooms have almost doubled globally

since 2007

» Four Points by Sheraton has experienced dramatic non-U.S. growth and already has 55% of rooms outside the U.S.

» Aloft, a highly differentiated select serve brand, has grown to 62 hotels since its launch in 2007 with 33% of rooms outside the U.S.


As of 31-Dec-12 160

LE MÉRIDIEN MINA SEYAHI BEACH RESORT & MARINA

GROSVENOR HOUSE







161

High Quality 100K room (400 hotel) global pipeline

Sources: Smith Travel Research Pipeline reports: Total Pipeline, company data

HIGH QUALITY GLOBAL PIPELINE AND GROWTH OPPORTUNITY

87%

76%

60%

47%

Starwood

Hyatt

Hilton

Marriott

Outside of U.S. (% of Pipeline)

67%

66%

37%

36%

Starwood

Hyatt

Marriott

Hilton

Upper Upscale / Lux (% of Pipeline)

162

Well Posi t ioned to take advantage of Global Growth

Sources: IMF 5-Year Nominal GDP Growth, Starwood pipeline data (mix by rooms)

25%

44%

20% 16%

19%

13%

19%

7% 10%

6% 7%

14%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

I I I I I I I I I I I I

Greater China Asia (excludingGreater China)

U.S. Europe Latin America &Canada

Africa / Middle East


% of 5-year Global GDP Growth % of Starwood Room Pipeline

163

Global Growth fueled by all Nine Brands HIGH QUALITY GLOBAL PIPELINE AND GROWTH OPPORTUNITY

05

101520253035

Sheraton Four Points bySheraton

Westin Aloft W Le Meridien St. Regis Luxury Collection Element

Pipeline by Brand

U.S. Greater China Asia ex China Europe Africa/ Middle East Latin America/ Canada

Room

s (00

0s)

As of 31-Dec-12 164

10-year track record of 5% Net Rooms Growth

100

200

300

400

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013E

5% Net Rooms Growth Operating

Rooms


165

FOUR POINTS BY SHERATON SHEIKH ZAYED ROAD, DUBAI

FOUR POINTS BY SHERATON DOWNTOWN DUBAI







166

High Value Global Owned Hotel Portfol io HIGH VALUE GLOBAL OWNED PORTFOLIO

25 TOP OWNED/LEASED HOTELS (~90% OWNED/LEASED EARNINGS)

U.S. / Canada

Asia Europe Latin America

• Sheraton On The Park, Sydney

• Sheraton Fiji Resort

• Westin Denarau , Fiji

• Sheraton Rio

• Sheraton Maria Isabel, Mexico

• Sheraton Buenos Aires

• Sheraton Lima

• St. Regis Grand, Rome

• Gritti Palace, Venice

• Hotel Alfonso XIII, Seville

• W Barcelona

• W London

• Westin Excelsior, Rome

• Sheraton Park Lane, London

• St. Regis New York

• St. Regis San Francisco

• St. Regis Bal Harbour

• The Phoenician, Arizona

• W New Orleans

• W NY – Times Square

• Westin Maui

• Westin SFO

• Sheraton Centre Toronto

• Sheraton Gateway Toronto

• Le Centre Sheraton Montreal

Based on Projected 2013 Earnings 167

Well Diversified Globally

ST. REGIS BAL HARBOUR

WESTIN EXCELSIOR, ROME BY DIVISION

HIGH VALUE GLOBAL OWNED PORTFOLIO

Europe

Asia U.S.

Based on 2012 owned earnings assuming Owned hotel set as of January 31st, 2013

Latin America / Canada

168

ST. REGIS NEW YORK

HOTEL GRITTI PALACE, VENICE

BY PROPERTY TYPE

HIGH VALUE GLOBAL OWNED PORTFOLIO

Based on 2012 owned earnings assuming Owned hotel set as of January 31st, 2013

Convention

Resort Urban

Airport

In High Barrier to Entry Urban and Resort Markets

169

Unlocking Value from Asset Sales STARWOOD 3-YEAR OUTLOOK

$275k/room = $4.8B

$300k/room = $5.2B

$325k/room = $5.6B

$/Room

14x = $4.4B

15x = $4.7B

16x = $5.0B

Adj. Earnings Multiple

To estimate cash proceeds, valuations will need to be adjusted for leases (20% of rooms), capital needs for certain hotels and any cash taxes on gains. Actual proceeds may vary depending on market conditions.

HIGH LEVEL VALUATION SCENARIOS

Owned Rooms ~14,800 Leased Rooms ~2,500

Note: Adjusted earnings represents Owned/Leased hotel operating revenue less operating expenses, pro forma for management fee on gross revenue. Value based on average EBITDA 2013-2015. 170

Unlock ing Value f rom UJVs and Non-EBITDA Producing Assets

KEY UNCONSOLIDATED JOINT VENTURES (>85% UJV EBITDA)

Asia Pacific North America

Latin America Non-EBITDA Producing Assets

UJV Rooms ~8,485 UJV EBITDA (HOT share) ~$70M

Hotel Rooms Ownership St. Regis Beijing, China 258 32% W Maldives 78 50% Sheraton Hong Kong 782 25% Sheraton Royal Orchid, Bangkok 726 44% Sheraton Imperial Kuala Lumpur 385 49% Sheraton Maldives 156 45%

Hotel Rooms Ownership

St. Regis Punta Mita 120 40% W Mexico City 237 50%

Hotel Rooms Ownership

Sheraton New Orleans Hotel 1,110 47% Sheraton Seattle Hotel 1,258 22% Westin Savannah 403 49% Westin Bellevue 337 17%

Land Holdings

Sardinia Atlanta Buckhead

Maui, HI Avon, CO

Orlando, FL Aruba, NA

STARWOOD 3-YEAR OUTLOOK

171

LE MERIDIEN DUBAI

LE ROYAL MERIDIEN ABU DHABI







172

Global Infrastructure – the Power of Starwood

INDIVIDUAL SPIRIT, COLLECTIVE STRENGTH

OPERATIONS REVENUE

MANAGEMENT SALES

Central Marketing Delivery

SPG & PARTNERSHIPS


& PR

UNMATCHED GLOBAL PLATFORM

173

SPG & PARTNERSHIPS


& PR

CENTRAL MARKETING DELIVERY

Global Infrastructure - Capabil i t ies


» Starwood centrally influences 71% of Room Nights

» Digital Channels ~25%

» Starwood influenced property direct ~23%

» Customer Contact Centers ~13%

» Global Distribution Services (GDS) ~10%

» 54% growth in SPG members globally since 2007

» 47% of SPG members come from outside the U.S.

» SPG share of occupancy is > 50% at a 25% ADR premium globally

» Key partnership across industries – Travel (Delta), Finance (Amex), F&B (Coca-Cola), Entertainment (Live Nation), Sports (U.S. Open), and Retail (Pottery Barn)

» Starwood’s internal marketing agency, Field Marketing, provides localized support to individual hotel business needs

» Currently 94% of Starwood hotels in North America opt into program

» Delivers on average $25 for every $1 spent on investment for participating hotels

174

Global Infrastructure - Capabil i t ies

SALES

REVENUE MANAGEMENT

OPERATIONS


» Starwood B2B Sales drives ~70% of Revenue

» >5,000 sellers deployed against customers’ teams and buying patterns

» Adding resources in key markets, including BRIC, Eastern Europe, and South Africa

» Multi-million dollar investment in cutting-edge revenue management technology

» Implementation of effective pricing and inventory strategies

» Corporate, divisional, regional and area-based RM experts work with hotels

» Best-in-class hotel operations teams

» 3,500 restaurants and bars Systemwide

» Sustainability strategy which targets 30% energy reduction and 20% water reduction by 2020

175

Best Global Team

Mexico City

Buenos Aires

Toronto

Honolulu

Sydney

London

Madrid Milan

Tokyo

Bangkok Singapore

New Delhi

Vienna

Brussels

Dubai

Seattle Chicago

Atlanta Shanghai

Kuala Lumpur

Miami

New York

3 Divisions 6 Regions Cross-functional teams at Divisions/Regions

Global Structure

% Born outside U.S: 39% % Working outside home country: 37% Avg. Starwood Tenure:16 years

Leadership 100 Demographics


Orlando

Scottsdale

176

THE WESTIN ABU DHABI GOLF RESORT & SPA

SHERATON DUBAI CREEK HOTEL & TOWERS







177

Cash From Hotel Operations EXTRAORDINARY CASH GENERATION POTENTIAL

Note: Excludes cash from Timeshare and Bal Harbour

$815

$531 $596

$694 $738

2008 2009 2010 2011 2012

$3.4B of Cash from Hotel Operations since 2008 Invested Capital of $1.8B in Hotel Business since 2008

$428

$236 $265

$462 $417

2008 2009 2010 2011 2012

Hotel Earnings – Includes Owned, Fees and Other Earnings less SG&A and Gain Amortization

Capital – Includes Maintenance and Development Capital

178

Cash from Timeshare Operations & Bal Harbour EXTRAORDINARY CASH GENERATION POTENTIAL

($150)

$275 $182 $150 $177

2008 2009 2010 2011 2012

($133) ($68)

($127) ($29)

$461

2008 2009 2010 2011 2012

Timeshare – Net Cash Bal Harbour – Net Cash

Net Cash Flow – Includes all timeshare cash receipts and expenses, securitization proceeds, capital and SPG point cost

Net Cash Flow – Includes cash from closings, construction capital (both residential and hotel), S&M expenses and developer liability costs

179

Cash from Asset Sales

$238M $148M

$312M

$548M

$1.25B

2009 2010 2011 2012 Total 2009-12 # of Transactions Price / Room AEBITDA Multiple Multiple w/ CAPEX

7 $162K

14x 24x

2 $298K

28x 28x

3 $177K

13x 14x

5 $317K*

17x 19x

17 $228K

16x 19x

»$1.25B of Cash Proceeds (gross) generated since 2009 (Avg. Multiple over 16X) »Buyers have invested heavily in hotels (St. Regis Aspen, Westin Gaslamp, W Lakeshore, Le Méridien Perimeter)

EXTRAORDINARY CASH GENERATION POTENTIAL

* Excludes Poconos 180

$913

$771

Extraordinary Cash Generation

Net Debt Reduction of $2.4B since 2008 Returned $1.7B to Shareholders since 2008

Share Buybacks

Dividends

EXTRAORDINARY CASH GENERATION POTENTIAL

$3,248 $3,523

$2,826

$2,051

$1,511

$811

1/12008

1/12009

1/12010

1/12011

1/12012

1/12013

Note: Net debt consists of Long-term debt and short term debt, net of cash equivalents and restricted cash 181

LE MÉRIDIEN MINA SEYAHI BEACH RESORT & MARINA








182

STARWOOD 3 YEAR OUTLOOK

GROSVENOR HOUSE, DUBAI

183

Source: International Monetary Fund, UNWTO World Tourism Organization

Secular Demand Gains in Growth Markets


GLOBAL GDP 2012 2020

GLOBAL TRAVEL 2000 2012 2020

2000 Growth Markets

Mature Markets

Growth Markets

Mature Markets

Growth Markets

Mature Markets

Growth Markets

Mature Markets

Growth Markets

Mature Markets

Growth Markets

Mature Markets

184

Best Growth Markets Platform in Lodging STARWOOD 3-YEAR OUTLOOK

FEES PIPELINE ROOMS

Mature

Growth (32%)

Mature

Growth (35%)

Mature

Growth (80%)

Greater China India / Emerging Asia Emerging Europe / AME Latin America

As of 31-Dec-12 185

Secular Growth with Cycles in Mature Markets

Sources: US data; PWC (lodging 1967-1986); STR (lodging 1987-2012; U.S. Bureau of Labor Statistics U.S. Price Inflation (CPI-U, Annual Average)

8 Years 8 Years 10 Years 10 Years

$0$10$20$30$40$50$60$70

'71

'72

'73

'74

'75

'76

'77

'78

'79 80 '81

'82

'83

'84

'85

'86

'87

'88

'89

'90

'91

'92

'93

'94

'95

'96

'97

'98

'99

'00

'01

'02

'03

'04

'05

'06

'07

'08

'09

'10

'11 12

Nominal RevPAR

Real RevPAR (2012 dollars)


186

2.7% 3.2%

2.0%

0.6% 0.5%

2008 2009 2010 2011 2012 2013 E

U.S. SUPPLY GROWTH (%) BY YEAR

Low Supply Growth Supports Recovery

Source: Smith Travel Research, PWC

Europe Supply Growth over next 3 Years = <1%


21% 25%

21%

13%

1970s 1980s 1990s 2000s

U.S. SUPPLY GROWTH (%) BY DECADE

<1%

187

65% 67% 67% 67%

64%

58%

62%

64% 66%

2004 2005 2006 2007 2008 2009 2010 2011 2012

$133

$141

$152

$162 $165

$147 $147

$154

$159

2004 2005 2006 2007 2008 2009 2010 2011 2012

$176 (11%) 2008 Peak ADR in “Real” terms

Rates wil l dr ive Next Leg of RevPAR Growth


Source: STR. U.S. Luxury, Upper-Upscale and Upper Tier Independents

Occupancy % ADR ($)

U.S. Luxury / Upper Upscale

188

Growth

Well Balanced Mature Markets Business

FEES INCENTIVE FEES OWNED/LEASED EARNINGS

BASE FEES

Franchise

Incentive

Base Mgmt

Growth

Mature (75%)

Growth

Mature (85%)

Note: Earnings represents Owned/Leased hotel operating revenue less operating expenses


U.S. 37%

Asia Europe Canada

2012

($M’s) % of Hotels Paying Fees

$50M 31%

$128M 81%

Mature

Growth

MATURE

Mature

189

5-7% Growth Achievable wi th Cont inuing Recovery Cycle

U.S. REVPAR

’75-’79 CAGR 15% n/a

’93-’97 CAGR

7% 8%

’03-’07 CAGR

7% 9%

’10-’15 CAGR ~6% Total U.S.

U.S. Luxury/UU

Source: PWC (lodging 1967-2015E)


$0

$10

$20

$30

$40

$50

$60

$70

$80

$90

'68

'69

'70 '71

'72

'73

'74'75

'76'77

'78

'79

'80'81

'82

'83

'84

'85

'86

'87

'88

'89

'90 '91

'92

'93

'94

'95

'96

'97

'98

'99

'00'01

'02

'03

'04

'05

'06

'07

'08

'09'10 '11

'12'13 14 15

190

Indicative Management Contract Structures

U.S. Non-U.S.

Base Fee (% GOR) ~3-4% ~2-3%

Incentive Fee ~10-12% of “Incentive Income,” Often NOI after an Owner priority return that is typically 8-10% of

invested capital

~8-10% of (typically) GOP after Base Fee; No Owner priority return

Term ~20-40 years

Limited Owner rights to terminate (e.g. on sale of property) or convert

to franchise

~20-40 years Early Owner termination right is

rare

Expanding Margins Driving Incentive Fee Growth STARWOOD 3-YEAR OUTLOOK

» GOP Margins have expanded 270 bps since 2009 with incentive fee growth of 46%

» ~60% of same store managed properties worldwide pay incentive fees

» ~76% of same store managed properties in international markets pay incentive fees

191

$280

$540

2012 2017 Target

19%

26%

2012 2017 Target

EARNINGS ($M)

» RevPAR CAGR 6% » ADR CAGR 5% » Margin gains of ~130 bps / year

» Global Revenue Management » Lean Operations » Food and Beverage

Key Assumptions

CAGR: +14%

MARGIN

+7 pts

RevPAR

$0 $10 $20 $30 $40 $50 $60 $70 $80

Note: Earnings represents Owned/Leased hotel operating revenue less operating expenses for Owned hotel set as of January 31st, 2013.. Excludes $27M in sold and other earnings.

“Path to Peak” at Owned / Leased Hotels STARWOOD 3-YEAR OUTLOOK

Key Initiatives

Current Owned / Leased Hotel Set

192

$340

$350

$360

$370

$380

$390

$400

$410

$420

2007 2012

Worldwide SG&A*

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

2007 2012

Systemwide Rooms

-11%

* 2007 SG&A excludes expenses associated with Bliss spa subsidiary, sold in 2009.

Holding the Line on SG&A STARWOOD 3-YEAR OUTLOOK

» In the last 5 years, SG&A per room is down over 25%

» We are adding costs strategically to support the growth of our business in key markets

» Controlling the growth of corporate costs

+21%

193

Key Assumptions

Global Outlook

» Normal cyclical recovery in Mature Markets

» Continued rapid growth in Growth Markets

» Modest increase in interest rates

» Constant foreign exchange rates at current levels

Macro » No additional hotel sales

included (adjustments in the future if/when hotels sold)

» No share repurchases assumed

» Bal Harbour included in cash flow (excluded from EBITDA)

» Focus on share gain and cost control in the hotel business

» Manage Timeshare business for cash generation

» Sell-out Bal Harbour by the end of 2013

» Continue tight SG&A control

Operational Financial


194

What Could Disrupt a Normal Cyclical Recovery?

Starwood Outlook

MACRO-ECONOMIC RISKS » Political backlash to austerity in Southern Europe » Deceleration in China due to global slowdown in demand » Low / no growth in North America due to deficit/debt issues

GEO-POLITICAL RISKS » Syria / Egypt / Iran » Afghanistan / Pakistan » North Korea


195

Starwood 3-Year Outlook CAGRs 2012 - 2015


RevPAR Growth = 5 to 7% EBITDA Growth = 10 to 12% EPS Growth = 16 to 20%


196

Owned / Leased Hotels 3-Year Outlook CAGRs 2012 - 2015


RevPAR Growth = 4 to 7% Margin Improvement = +200 to +400 bps Earnings Growth = 10 to 14%

+/-1% RevPAR CAGR = +/-$20-25M Owned/Leased Earnings through 2015

Note: Earnings represents Owned/Leased operating revenue less operating expenses.


197

Managed and Franchised Hotels 3-Year Outlook CAGRs 2012 - 2015


+/-1% RevPAR CAGR = +/- $20-25M Management & Franchise Fees through 2015

RevPAR Growth = 5 to 7% Net Rooms Growth = 4 to 5% Incentive Fee Growth = 15 to 20% Managed & Franchise Fee Growth= 9 to 12%

Note: All growth rates same store except Net Rooms Growth and Total Fee Growth


198

Vacation Ownership / Residential 3-Year Outlook (CAGRs 2012 – 2015, unless otherwise noted)


Note: Earnings represents VOI operating revenue less VOI operating expenses.

Originated Sales Growth = Flat Operating Income Growth = Flat Timeshare Capital Spend = $150 to $200M (Cumulative’13-15)

Timeshare Cash Flow = $450 to $500M (Cumulative ’13-’15)

Bal Harbour Net Cash Flow = $100M (2013 Cash Flow per 2/7/2013 Outlook) (sell out in 2013)


199

3-Year Outlook: Sources of Growth


Note: EBITDA and EPS before special items

2012 2015

PRO-FORMA EPS

2012 OWNED M&F SVO / NET 2015

PRO-FORMA HOTELS FEES RESIDENTIAL SG&A EBITDA

Tax Rate: ~31%

$1,043

$1,370 -

$1,450 +10%

- +14%

+9% -

+12% flat

-3% -

-5%

EBITDA GROWTH (2012 – 2015, $M)

EPS GROWTH (2012 – 2015, $M)

$2.08

$3.25 -

$3.60

CAGR: 16% - 20%


200

Significant Cash Generation Potential (all figures cumulative, $ in millions)


~$2B

- = +

Asset Sales

Cash available to:

» Fund growth

» Return to shareholders

3 Yea

r Cas

h Fl

ows f

rom

2012 Ending “Excess” Cash ~$300M

Owned Hotels $1,050M

To $1,150M

Fee Business $3,100M

to $3,200M

SVO / Bal Harbour

$550M to

$600M

=

3 Yea

r Cas

h Fl

ows

SG&A Expense ($1,200M)

To ($1,250M)

Owned Hotel and IT Capital

($1,150M) to

($1,200M)

Tax and Interest Expense

($700M) to

($750M)

Sources Uses 3 Year Cash Flow

Balance Sheet capacity in 2015 (at target 2.5x Gross Debt/AEBITDA) + $1.0B to $1.3B

“Capacity” for Growth Investments & Return to Shareholders = $3.0B to $3.3B


201

Achiev ing 80/20 Asset L ight goal by 2016 = ~$3B in Cash

North America » Improving industry operating fundamentals » Low Supply increases » Foreign and PE equity capital re-emerging » REITs with access to capital Europe » Significant interest for gateway markets » Interest from Middle East and Asia Latin America » Mexican GDP accelerating » Global investor interest in Brazil Asia » Australia: hub for cross-border capital » Emergence of REITs in certain markets

Transaction Outlook Disposition Alternatives


Individual Asset Sales Portfolio Sale » Small (< 3 assets) » Large ($750M+)

Joint Venture » Private Equity » REIT » Institutional Investor / SWF REIT Spin-Off » HOT sponsored spin-off (public or non-traded REIT) » Contribute all / a portion of assets in exchange for share

and cash (public)

202

Use of “Capacity” – $3.0B to $3.3B + Cash from Asset Sales


» Support Pipeline Growth – Joint Ventures – Financing – Opportunistic Hotel Acquisitions

» Strategic Brand Acquisitions – Expand current footprint – Acquire additional regional or global

scale

Fund Growth

» Pay Dividends – 2012 Dividend: +150%; 2% yield – Increase payout as EPS grows

» Buy Back Stock – Offset Share Dilution – EPS Accretion – Below intrinsic value

Return Cash to Shareholders


203

IN SUMMARY

FOUR POINTS BY SHERATON SHEIKH ZAYED ROAD, DUBAI

204


Summary

Owning Hotels Owning Relationships

U.S.-Centric Global Enterprise

Price Point Segmentation Lifestyle Segmentation

» Higher growth trajectory

» Lower cyclicality

» Higher margin

» Higher capital efficiency

» Significant cash generation

» Superior shareholder value creation

IN SUMMARY

205

The Starwood Investment Proposition

Summary

»Leading Global Hotel Company in High Growth Markets

»Best Global High End Lodging Brands

»High Quality Global Pipeline

»High Value Global Owned Hotel Portfolio

»Unmatched Global Platform

»Extraordinary Cash Generation Potential

IN SUMMARY

206

Starwood Outlook

Summary

»Secular demand gains in Growth Markets

»Below-trend supply growth in Mature Markets

»Sharp rebound in owned hotel profits

»Significant cash generation from hotel operations, asset sales and timeshare

IN SUMMARY

207


Summary

»5-7% annual RevPAR growth achievable 2012-2015 with continued cyclical recovery

»10-12% annual EBITDA growth & 16-20% annual EPS Growth

»$3.0B to $3.3B of operating cash flow and balance sheet capacity

»80/20 Asset Light goal by 2016 could generate ~$3B in cash

»Significant capacity to fund growth investments and return cash to shareholders over next three years

IN SUMMARY

208

Same Store Owned, Leased and Consolidated Joint Venture Hotels Worldwide 2009 2012

RevenueSame store Owned, Leased and Consolidated Joint Venture Hotels 1,386$ 1,252$ Hotels sold, closed or without comparable results 198 446

Total Owned, Leased and Consolidated Joint Venture Hotels Revenue 1,584$ 1,698$

Costs and ExpensesSame store Owned, Leased and Consolidated Joint Venture Hotels 1,136$ 993$ Hotels sold, closed or without comparable results 179 398

Total Owned, Leased and Consolidated Joint Venture Hotels Costs and Expenses 1,315$ 1,391$

December 31,Twelve Months Ended

STARWOOD HOTELS AND RESORTS WORLDWIDE, INC.Non-GAAP to GAAP Reconciliations - Same Store Owned, Leased and Consolidated Joint Venture Hotel Revenue and Expenses

(In millions)

$ 562 $ (153) $ 409 182 - 182 128 (128) - 234 (55) 179 256 (11) 245 28 - 28 1,390 (347) 1,043 21 (21) - (179) 179 - (12) 12 - $ 1,220 $ (177) $ 1,043

(a)

(b)(c)

(d)(e)

STARWOOD HOTELS AND RESORTS WORLDWIDE, INC.Non-GAAP to GAAP Reconciliations - Pro Forma Data

(In millions)

Year EndedDecember 31, 2012

Income tax (benefit) expense(c)

As ReportedPro Forma

As Adjusted

Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA

Net income (loss)(a)

Interest expenseLoss on early extinguishment of debt, net(b)

Pro Forma Adjustments

Unusual and one-time items not expected to occur in a normalized year.

Depreciation(d)

AmortizationEBITDA(Gain) loss on asset dispositions and impairments, net(e)

Discontinued operations (gain) loss on dispositions(e)

Restructuring and other special charges (credits), net(e)

Adjusted EBITDA

The reduction in net income reflects the adjustments noted below to normalize the 2012 year. This includes eliminating $157 million of earnings from Bal Harbour, the reduction of $20 million for the asset sales that occurred in 2012 and the effect of the adjustments below.

Represents a decrease in costs as the early extinguishment is an unusual item in 2012.Includes a benefit of $52 million due to reduced EBITDA from the St. Regis Bal Harbour and a $3 million tax benefit from lower operating income from hotels sold during 2012.Includes an $11 million benefit from reduced depreciation associated with hotels sold during 2012.

Twelve Months Ended Unconsolidated Joint Ventures December 31, 2012

Equity Earnings from Unconsolidated Joint Ventures 25$ Depreciation and amortization from Unconsolidated Joint Ventures 32 Interest Expense from Unconsolidated Joint Ventures 10 EBITDA of Unconsolidated Joint Ventures 67$

STARWOOD HOTELS AND RESORTS WORLDWIDE, INC.Non-GAAP to GAAP Reconciliations

(In millions)

STARWOOD HOTELS & RESORTS WORLDWIDE, INC.

Non-GAAP to GAAP Reconciliations – Future Performance (In millions, except per share data)

Low Case

Year Ended

December 31, 2015 Net income $ 640 Interest expense 120 Income tax expense 288 Depreciation and amortization 322 EBITDA 1,370 (Gain) loss on asset dispositions and impairments, net - Discontinued operations (gain) loss on dispositions - Adjusted EBITDA $ 1,370

Year Ended

December 31, 2015 Income from continuing operations before special items $ 640 EPS before special items $ 3.25 Special Items Gain (loss) on asset dispositions and impairments, net - Total special items – pre-tax - Income tax benefit associated with special items - Total special items – after-tax - Income from continuing operations $ 640 EPS including special items $ 3.25

High Case

Year Ended

December 31, 2015 Net income $ 709 Interest expense 110 Income tax expense 319 Depreciation and amortization 312 EBITDA 1,450 (Gain) loss on asset dispositions and impairments, net - Discontinued operations (gain) loss on dispositions - Adjusted EBITDA $ 1,450

Year Ended

December 31, 2015 Income from continuing operations before special items $ 709 EPS before special items $ 3.60 Special Items Gain (loss) on asset dispositions and impairments, net - Total special items – pre-tax - Income tax benefit associated with special items - Total special items – after-tax - Income from continuing operations $ 709 EPS including special items $ 3.60

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