HOT Investor PPT AP June 2012 - Greater China

8/17/2019 HOT Investor PPT AP June 2012 - Greater China

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W HONG KONG

STARWOOD INGREATER CHINAQIAN JINPRESIDENTGREATER CHINA

48



GREATER CHINA REPRESENTS ANUNMATCHED GROWTH OPPORTUNITY

Sources: imf.org., data.worldbank.org, cia.gov, international trade administration, US Department of Commerce

CHINA USPopulation 1.3B 0.3B

Metro Areas withPopulation>1M 171 37

International arrivals (2011) 57M 62M

Outbound Trips (2011) 70M 58M

Outbound Trips (2015E) 100M (+43%) 64M (+10%)

Domestic Trips (2011) 2.6B 2.0B

49



STARWOOD – A LARGE BALANCEDFOOTPRINT ACROSS GREATER CHINA» 203 properties (operating + pipeline) with more than 72,000 rooms» Strong presence in key gateway cities and resorts» First-mover in secondary and emerging cities

103 Operating properties

100 Pipeline (Executed) Source: Starwood internal data as of June 2012 50

WEST & CENTRAL AREA:28 HOTELS - 14 OPERATING, 14 PIPELINE

SOUTH AREA:49 HOTELS - 27 OPERATING, 22 PIPELINE

NORTH AREA:47 HOTELS - 22 OPERATING, 25 PIPELINE

EAST AREA:50 HOTELS - 27 OPERATING, 23 PIPELINE

TAIWAN:9 HOTELS – 6 OPERATING, 3 PIPELINE

HONG KONG/ MACAO:7 HOTELS – 4 OPERATING, 3 PIPELINE



3622

138

27

1423

6

63

36 36

14

0

1020304050

6070

Starwood Marriott Hilton Hyatt

Pipeline - In Construction Operating

Source: Smith Travel Research (STR) of April 2012

THE CLEAR LEADER IN GREATER CHINA

51

GREATER CHINA – OPERATING AND PIPELINE ROOMS (000’s)



16

7

6

1

0

5

10

15

20

Starwood Hilton Marriott Hyatt

Since 2010, Starwood has opened more hotel rooms in GreaterChina than Marriott, Hilton and Hyatt COMBINED

OUR PIPELINE IN GREATERCHINA IS DELIVERING…

52

GREATER CHINA – NEW OPENINGS(by Rooms, ‘000s)

Source: Smith Travel Research (STR): January 2010 - April 2012, based on hotel open date



OUR GREATERCHINA

ADVANTAGE» First mover advantage

» Strong local brandrecognition

» Distinctive local programs

» Industry-leading pipeline

» Deep local leadershipteam

» Best-in-class talentbuilding programs

» Award winning hotelportfolio

53W TAIPEI, TAIWAN

SHERATON DAIMEISHA RESORT SHENZHEN



Guangzhou CCC Grand OpeningGuangzhou CCC Grand Opening

STARWOOD’S 1ST MOVER ADVANTAGE SETS IT APART1985 : 1st int’l chain to open a branded hotel in mainland China 2012: 200 properties (operating, pipeline)

1 st international chain to open abranded hotel in China - The Great

Wall Sheraton Hotel Beijing

Opening of Largest CustomerContact Center in Guangzhou

1974

Opening of Sheraton Hong Kong

2005 2009

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

Signed 100 th hotel in Greater ChinaSheraton Beijing Dongcheng Hotel

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

20081985 2011 2012

1 st int’l hotel chain to launchChinese Double Byte Booking Engine

Double Happiness Celebration200 properties (operating, pipeline)

54



STRONG LOCAL BRAND RECOGNITIONInternational Hotel Group of the Year-STARWOOD HOTELS & RESORTS

from China Hotel Industry Awards 2011

2011 BEST HOTEL GROUP-STARWOOD HOTELS & RESORTSfrom Travel & Leisure

THE BEST LUXURY HOTEL BRAND-WESTIN HOTELS & RESORTSfrom Sohu China Service Award 2011

THE BEST BUSINESS HOTEL BRAND-SHERATON HOTELS & RESORTSfrom Sohu China Service Award 2011

BEST MID RANGE HOTEL BRAND IN GREATER CHINA-FOUR POINTSBY SHERATONfrom TTG China Travel Award 2011

2011 BEST HOSPITALITY MANAGEMENT-STARWOOD HOTELS & RESORTSfrom World Travel Awards 2011

2011 BEST INTERNATIONAL HOTEL GROUP-STARWOOD HOTELS & RESORTSfrom Travel Weekly China 2011

55



STRONG LOCAL BRAND RECOGNITION – LOYAL AND LOCAL GUESTS» ~60% of guests in Starwood hotels in China are domestic travelers

» More than 75% of guests in secondary and emerging cities in Chinaare domestic travelers

China24%

N. America

19%

Europe11%

Japan8%Pacific

1%

Other37%

Source: Starwood internal data

2000

China60%N.

America10%

Europe9%

Japan4%

Pacific2%

Other15%

2012 YTD

56



STRONG LOCAL BRAND RECOGNITION – CAPTURING THE OUTBOUND TRAVELER» Leveraging our strong brand recognition in China to capture the

Chinese outbound market

» More than 50% growth in outbound revenue from Chinese SPGguests in the past two years

STARWOOD PERSONALIZED TRAVEL Designed to cater to the unique needs of ourChinese guests staying at our hotels globally» In-Hotel Chinese specialist» Chinese language collateral

» Convenience of home – Tea kettle – Instant noodles – Slippers – Amenities such as razor, toothbrush and comb – Chinese-friendly menu - congee, noodles, rice

57



HAINAN ISLANDDIGITAL INNOVATION

“SPG ” – GLOBAL PROGRAM,LOCAL APPLICATION

PARTNERSHIPS

Jiepang Check-In Promotion

>20,000 Fans on Weibo

Brand Zone on Baidu Destination Website

SPG Shuttle Buses

SPG Kids Eat Free

Global and Divisional Partners

Local Partners

58



DEEP ANDGROWING SPGPENETRATIONIN CHINA» SPG drives more than

55% of room nights in

Greater China» More than 60% growth

in SPG active membersin China in 2011

» Over 8% of SPG

members reside inGreater China – thelargest pool of SPGmembers outside of theU.S.

59



1ST INTERNATIONAL HOTEL COMPANYTO LAUNCH END-TO-END MANDARINBOOKING ENGINE» Double byte booking engine launched in March 2011

» Innovative global marketing campaign leveraging social media

60



AUTHENTIC F&B PROGRAMS

» Signature breakfast dishes by brand and region» Authentic regional dishes for our guests» Chinese Restaurant Operational Manual

61



The 300 associates in the Guangzhou Customer Contact Center providecustomer service for Starwood’s Mandarin -speaking guests both inChina and around the world

» Opening of thelargest internationalhospitalityContact Centerin China

» Expanded to180+ associates

» +38% increasein call volume in 2011(~1M calls)

» More than 300 associates» First Contact Centre in

China to receive LEEDcertification

LARGEST HOTEL CUSTOMER CONTACTCENTER IN CHINA

62



Qiandao LakeHangzhou Ningbo

TaipeiChung Ho

Hsinchu

50 SHERATON

15 FOUR POINTS

16 WESTIN

5 ST. REGIS

8 LE MERIDIEN

2 W

5 ALOFT

2 LUXURY COLLECT ION

OUR INDUSTRY-LEADING FOOTPRINTEXTENDS WELL BEYOND THECOASTAL MEGA-CITIES

Taicang

Huizhou

HongKong

Shunde

Shanghai

Macau

Haikou

Zhongshan

JiangyinLianyungang

Dongguan

Shenzhen

Zhoushan

Beijing

Sanya

Xi’an

Urumqi

Jiuzhaigou

Guangzhou

Lhasa

ShimeiBay

Jinan Qingdao

Chongqing

Hohhot

Wuxi

Tai’an

Fuzhou

Nanhai

Zhengzhou

Daqing

Jinzhou

Wuhan Hefei

Haiyang

OPERATING

Source: Starwood internal data as of June 2012

Tianjin

63



ShanghaiNine Dragon Hill

Ningbo

Wenzhou

Dalian

ZhanjiangZhuhai

Heshan Guangzhou

Yancheng

Huzho u

NanjingLuohe

Haitang BayHaikou

Macau

Wuhan

Kaifeng

Hefei

Hangzho u

Chongqing

Huizhou

BeijingTianjin

Qingsui Bay

Yilan

Xi’an

Nanchang

QingdaoZhengzhou

Xiamen

Ulaanbaatar

Penghu

Tangshan

Yuhuan

Yantai

Taiyuan

Chengdu

Fuzhou

Weifang

Tufu Bay

Xishuangbann a

Shantou

ErdosShenyang

Huangshan

Nanning

Shenzhen

Changs haDiqing

OUR INDUSTRY-LEADING PIPELINEREFLECTS OUR FOCUS ON THEGROWING 2ND AND 3RD TIER CITIES

Changchun

Changbaishan

Bijie

Suzhou

Lijiang

Emei

39 SHERATON

20 FOUR POINTS

11 WESTIN

6 ST. REGIS

6 LE MERIDIEN

5 W

6 ALOFT

7 LUXURY COLLECTION

Source: Starwood internal data as of June 2012

PIPELINE(EXECUTED)

64



CASE STUDY – GROWTH STRATEGY

Tianj in

» Entered Tianjin with Sheraton in 1987» Opened Westin, Luxury Collection, St. Regis

and another Sheraton in 2010-2011» Added Le Meridien to pipeline» Today: 5 Operating + 1 Pipeline

Tianjin

Changsha

Changsha

» Entered Changsha in 2007» Added St. Regis, W to pipeline» Today: 1 Operating + 2 Pipeline

Xiamen

» Entered Xiamen in 2006» Opened Le Meridien and Westin in 2010, 2012» Added Luxury Collection to pipeline» Today: 3 Operating + 1 Pipeline

Xiamen

HainanIsland

Hainan Is land

» Entered Hainan with Sheraton in 2003» Opened Le Meridien, St. Regis, Four

Points and 3 more Sheratons since 2005» Added Luxury Collection, more Westin,

Sheraton and Four Points to pipeline» Today: 7 Operating + 7 Pipeline

Sheraton as the launch brand to penetrate into emerging cities in China

65



GREATER CHINA: OUR LEADERSHIP TEAMStrong, local team with average 16 years of service with Starwood

S E N I O R L E A D E R S H I P

Qian JinPresident, Greater China

26 Years

R E G I O N A L

E X C O M

R

E G I O N A L

L E A D E R S H I P

Alice WongSVP Finance

15 Years

Liu Wei LiVP Design &TS

6 Years

Stephen Ford AMD South China12 Years

Josef DolpMD, Sheraton Macau16 Years

Charlie Dang AMD North China19 Years

Charles Woo AMD HK & Macau16 Years

Michael ProssVP HR

26 Years

Dean LeeVP Finance

2 Years

Robert ZhangVP A&D

22 Years

Christopher ZhangVP A&D Mid-Scale

2 Years

Wendy HuangVP S&M7 Years

Harris ChanVP Operations, China34 Years

Duke Nam AMD Central/West China15 Years

Henry XuLegal Counsel

3 Years

Miguel KoNon-Executive Chairman

25 Years of Service(before retirement in August 2012)

Stephen HoPresident, Asia Pacific

31 Years

Daniel Aylmer AMD East China16 Years

66



National Recruitment Day- Video BUILDING BEST-IN-CLASS TALENTFOR THE FUTURE

Multi-pronged approachto building talent

» Starwood Cares

(employee culture program)» Starwood Careers (internal

talent development, Starwoodretention program)

» Branding & Engagement

(Social media, brandedrecruitment, annual NationalMass Recruitment day)

67



National Recruitment Day- Video ATTRACTING THE BEST TALENT THROUGHCREATIVE CHANNELS – 2012 GREATER CHINANATIONAL RECRUITMENT DAY

68



GREATER CHINA:OUR PORTFOLIO – INNOVATIVE DESIGN

SHERATON DAMEISHA RESORT, SHENZHEN, CHINA386 ROOMS, 2007

69



GREATER CHINA:OUR PORTFOLIO – INNOVATIVE DESIGN

LE ROYAL MERIDIEN SHANGHAI, CHINA761 ROOMS, 2006

70



GREATER CHINAOUR PORTFOLIO – INNOVATIVE DESIGN

THE ST. REGIS TIANJIN, CHINA274 ROOMS, 2011

SHERATON HUZHOU HOT SPRING RESORT, CHINA352 ROOMS, OPENING IN 2012

71



GREATER CHINAOUR PORTFOLIO – THE TALLEST ST. REGIS GLOBALLY

THE ST. REGIS SHENZHEN, CHINA297 ROOMS, 2011

72



GREATER CHINAOUR PORTFOLIO – THE HIGHEST INTERNATIONAL HOTEL GLOBALLY

THE ST. REGIS LHASA, CHINA162 ROOMS, 2010

73



GREATER CHINA:OUR PORTFOLIO – THE BIGGEST SHERATON GLOBALLY

SHERATON MACAO3,863 ROOMS, OPENING IN 3Q 2012

74



GREATER CHINA:OUR PORTFOLIO – 1ST DUAL-BRANDED SKI RESORT COMPLEX

SHERATON CHANGBAISHAN RESORT, CHINA,301 ROOMSTHE WESTIN CHANGBAISHAN RESORT, CHINA,250 ROOMSOPENING IN 3Q 2012

75



OUR MISSION INGREATER CHINA:TO BE THE LARGEST

AND BEST

CHINESE HOTELCOMPANY

76

Documents

HOT Investor PPT AP June 2012 - Greater China