STARWOOD IN THE MIDDLE EAST IRE ECTOR – MID IDD DLE EAST GUIDO DE WILDE // SVP, REGIONAL DIR ©2013 STARWOOD HOTELS & RESORTS WORLDWIDE, INC. | Proprietary & Confidential
FORWARDRD-LOOK LOOKING STATE TEMENT MENTS S These presentations presentations contain forward-look forward-looking statements wit ithin hin the meaning of federal federal securities securities regulations. regulations. These forwardlooking stat tatements ements generally generally can be identified identified by phrases such as Starwoodor its management “beli elieves, eves,” ”“expects,” “anticipates,” anticipates,”“ “foresees,” foresees,”“ “forecasts,” ts,”“ “estimates” estimates”or or other words or phrases of similar import. Similarl ilarly y, statements in this this release that describe the the Company’s business strat trategy egy, outlook, objectives, plans, intenti intentions onsor goals also also are forw forwardard-looking looking statem state ments. Forward-looking statements are not guarantees guarantees of future perform performance and involve risks risks anduncerta ertainti inties es and other factors that may cause actual results results to diff iffer er mate ateria rialllly y fromthose anticipated anticipated at the tim time the forward-look forward-looking statements are made. Future results, results, performance and achievements may be affected affected by general economic condit itions ions including the severity and duration of any any downturn in the the US or global global economy, the im impact of war and and terrorist acti activity, vity, business and financing financing condit itions, ions, including the availability availability of mortgage financ financing, foreign exchange fluctu fluctuations, cyclicality of the real real estate, including the sale of residential residenti al units, and the hotel and vacation ownership businesses, operating operating risks associate ociated d wit ith h the sale of residential residential units, units, hotel and and vacati acation on ownership businesses, rel relati ations onships with asso associat ciates, es, customers and property owners, the im impact of the the internet inter net reservation reservation channels, our reliance reliance on technology, domesti estic c and international international political political and geopolit olitical ical conditions, competi petiti tion, on, governmental and regulatory actions (including (includingthe impact of changes in U.S. U.S. and foreign tax laws lawsand their interpretat inter pretation), ion), travel travelers’ ers’ fears fears of exposure to contagious diseases, risk associate ciated d wit ith h the level of our indebtedness, risk risk associat iated ed with potential potential acquisitions acquisitionsand dispositions, and other circumstances and uncertai certaintie nties. s. There There can also be no assurance that agreements wililll be entered entered into for the hotels in the Company’s pipel ipeline ine and, if if entered entered into, the the timing of any agreement and the opening of the relate related d hotel tel.. These These risks and uncert ertainti ainties es are presented presented in detail in in our fili filings ngswith the Securities Securiti es and Exchange Commission. Although we believe believe the the expectations expectations reflected reflected in in such forwardard-looking looking statements are based upon reasonable assumptions, we can give no assurance that our expectations will be attained attained or that results will will not mate ateria rialllly y diff iffer. er. We undertake no obliligation gation to publicly update or revise any forward-looking statement, whether as a result result of new informati ation, on, future future events or otherwise. Please note that these presentati Please presentations ons include non-GAAP fi financial nancial measures. For definiti definitions onsof certain certain termsused herei erein n anda presentation presentat ion of the most directl directly y comparable fi financial nancial measure calculated calculated and presented in in accordance with GAAP and a reconcililiat iation ion of the differences differences between the non-GAAP financial financial measure disclosed andthe most comparable fi financial nancial measure calculated calculat ed and presented in accordance with GAAP, please refe referr to the the Company’s web site at www.starwoodhotels.com.corporate/investor_relations.html.
WELCOME TO DU DUB BAI » Acity at the cent center er of one of the the most most dynamic dyn amic regions regions in the worl world d
MIDDLE MIDDL E EAST EAST IS AREGI REGION ON THAT MATTERS » Melting po pott of divers diverse e and comple plex x poli polititics cs and religions » Rich and co com mplex history history » Gro Grow wing pop population ulation » At the cros crossro sroads ads of globalization
RICH HISTORY » His Histor tory y dates dates back back to 3500BC » Inn nnov ovations ations in languag language, e, culture, science » Birthplace of of Judaism Judaism, Christianity Ch ristianity and Islam Islam
FAST GROWING DYNAMIC POPULATION » >50% of of popu populati lation onun under der 30 years » 1990-2008, po populatio lation n growth rate rate was higher than Ind ndia ia and and Chin China, a, and remains high » Mo Mosaic saic of of over over 350M people people » The UA UAE’s po popu pulati lation on is 7.5M » 2M in Du Dubai alon alone with with 5% growth in 2012 2012
MIDDLE EAST IS AT THE CROSSROADS OF GLOBALIZATION
» Trad Trade e between Chin China a and Arab world and trade with with Africa has increased tenfold » UAE, Qatar and and Sau Saudi di becoming im importa portant nt hubs » By 2030, 2030, travel into into th the e region is expected to triple to 149M arrivals » Ou Outbo tboun und travel travel is up up 400% in last 20 years » Ex Expe pected ctedto reach reach80M outbound trips annu annual ally ly by 2030
NOT JUST ABOUT OIL OIL » 60% of of wo world’s to total tal proven oil reserves » Des Despite pite econ economic crisis, so som me of the highest high est per capita incomes globally globally » Dramatic Grow Growth in inbou inbound nd and outbound touri tourism sm » Arrivals up up over 7% per year since 2005 » Ou Outbo tbound travel travel up 8% per per year year since 2005
SHEIKH ZAYED SHEI ROAD ROA D – THEN » Tran Transf sfor orm mation of Dubai » Op Open-Sk en-Skies ies policy » Free Econo Econom mic Zones Zones » Pro Prom motio otion n of tourism tourism
» 600k pop populatio ulation n in 1993 » 167 Ho Hotels in 1993
SHEIKH ZAYED SHEI ROAD ROA D – NOW » UA UAE's E's hos hospitali pitality ty market » Re Reve ven nues of $7.5B by 2016 » +67%over 201 2011
» 2.1M po populatio lation n » 326 Hote tels ls
OTHERS FOLLOWING DUBA DUB AI’S LEAD LEAD » Ab culture ure Abu u Dhabi Dh abi focusing on cult witith h branches branches of the the Guggenheim Guggenhei m and Louvre opening, op ening, al alon ong g with with the Zayed National Museum » Qatar investi investing ng $11B in new Doha Doh a international international Airport, $6B in Doha Doha Port project and and $25B in other infrastructu infrastructure re » Sa constructing structing the Saudi udi Arabia A rabia con $86B $8 6B King Abdulla Abdullah h Economic City
STARWOOD’S MIDDL MI DDLE E EAST EAST ADVANTAGE » First mov over er advantage advantage » Stron Strong g local local bran brand d recogn recognition ition » Deep local local relationsh relationships ips » Lead Leading ing loyalty loyalty program programand global infrastructure » Inn nnov ovative ative Food and Beverage Programs » Best in clas class s talent talent
SHERATON DUBAI MALL OF THE EMIRATES HOTEL
WESTIN DUBAI MINA SEYAHI BEACH RESORT & MARINA
FIRSTFI RST-MOVER MOVER ADVANTAGE
STARWOOD STARW OOD HAS HAS BEEN IN IN THE THE REGION FOR FIVE DECADES Sheraton Kuwait – Starwo Starwood’s first hotel outside of the U.S
1966
1978
Debut in UAE and KSA with Sheraton Sheraton Dubai Hotel Creek Creek & Towers and Le Méridien Medina
Starwood enters Qatar and Pakistan with Sheraton
1982
1984
Opened the first first worldwide reservations office in the region (Bahrain)
Entry of W and Aloft brands
2009
2010
Luxury Collection Collection takes over operation operati on of Grosvenor House and Al Maha
Growth in emerging emerging market arkets s– opening of Sheraton Dushanbe and signing of Sheraton Sheraton Aktobe
2012
Signing of Shera eraton ton Erbil – marking Starwood’s re-entry re-entry into Iraq after 20 years
FIRSTFI RST-MOVER MOVER ADVANTAGE
OUR EXPERIENCE GIVES GI VES US AN ADVANTAGE » 79 hotels hotels (op operating erating + pipeline) pipeline) » More than 22,000 rooms in 13 coun countries tries
UAE 33 HOTEL HOTELS S – 21 OPERA OPER ATING, 12 P IP IPELINE ELINE
SAUDI ARABIA 15 HOTELS - 9 OPERATING, 6 PIPELINE
OTHER 31 HOTE HOTELS LS - 15 OPERA OPER ATING, 16 P IP IPELINE ELINE
45 Operating 34 Pipeline (Executed)
FIRSTFI RST-MOVER MOVER ADVANTAGE
THE LARGEST LUXURY/UPPER –UPSCALE HOTEL COMPANY IN THE MIDDLE EAST
MIDDLE EAST HOTELS 50 40 30 20
45 25
10
22 11
0 S tarwood
Marriott
Hilton
Hyatt
FIRSTFI RST-MOVER MOVER ADVANTAGE
DIVERSE PIPELINE BY BRANDS AND MARKET BY MARKET
BY BRAND Element 3% Qatar 3%
Aloft 11%
Sheraton 26%
Four Points by Sheraton 17%
The Luxury Collection 9%
W 14%
UAE 34% 34 %
Oman 9%
Le Méridien 3% St. Regis 8%
“Stan” Countries 11%
Iraq 9%
Westin 9%
34 PIPELINE HOTELS
Levant 14%
KSA 20%
FIRSTFI RST-MOVER MOVER ADVANTAGE
ACCELERATING GROWTH 80 HOTELS IN 2016
45 HOTELS TODA TODAY
100 HOTELS IN 2019
THE ST. ST. REGIS SAA SA A DIY DIYAT AT ISLAND ISLA ND RESORT
ABU AB U DHABI DHABI
THE ST. REGIS
DOHA
THE ST. REGIS
ABU AB U DHABI DHABI
MULTIMUL TI-B B RAND PROJECT – DUBA I
3 X DUBAI
MUSCA MUS CAT AM AMMAN MAN ABU DH DHAB ABI
ERBIL, IRAQ DUSHANB DUSHA NBE, E, TAJI JIK KISTAN AKTO TOBE, BE, KAZAKHSTAN
OUR BRANDS RESON RE SONA ATE WELL IN THE MIDDLE EAST » Seco Second nd regio region n after North Ameri erica ca to have all all nine brands brands » Inc ncreasing reasing nu num mber of of conversi con version on oppo opportunit rtunitie ies s » Rejuven Rejuvenation ation of Sherato Sheraton n and and Le Méridien Méridien with renovations » Exp Expans ansion ion of of existin existing g prop propertie erties s to mee eett high-dem high-demand and » High High--levels of of gues guestt satisfaction satisfaction
SHERATON DUBAI MALL OF THE EMIRATES
SHERATON KUWAIT AND FOUR POINTS BY SHERATON KUWAIT
DEEP RELATIONSHIPS BUI UIL LT ON DECADES OF TRUST » We have a deep unders understand tanding ing of this part of the the world world » Righ Rightt teams teams in place to deliver the promise » Strong rel relati ation onsh ships ips with som some of the most influential influential royal families » Hig High hly influential influential royal royal familie families s are some of the most importa rtant nt owners of the hotels hotels we operate operate
TAILWIND FROM OUR GLOBAL PLATFORM: SPG » Members bas based ed in the the Middle East East accounted accounted for 350,000 stays in 2012 » SPG com commun unitity y in the Middle East East spends spends wel elll above abov e the glob global al avera average ge » SPG acc accou ounted nted for 51% share of occupancy occupancy in 2012 2012 » 21 SPG poin pointt “mill illion ionaires” aires” in the region
IMP MPA ACT OF FOOD AND AND BEVERAGE » Op Operate erate 277 Restau Restauran rants ts and Bar Bars s » Relati Relation onsh ships ips with world world class chefs » F&B acco accoun unts ts for 43% of regions total revenue in 2012 » SPG and F& F&B B Integ ntegration ration
GORDON RAMSEY
JEAN GEORGES VONGERICHTEN
GARY RHODES
BEST IN IN CLA CLASS TALENT » Ass ssoc ociate iates s from from ov over er 100 100 different nationalities, speaking over 50 languages » App pprox roxim imatel ately y 12% of our our work orkforce force are local nation national als s » Ho Hous use e clos close e to 16, 16,000 000 associates in staff accommodati odations ons,, serve over 15 milillilion on meal eals s per year » 20, 20,000 000 ass assoc ociates iates by by the the end of 2013
AL A L OFT RIYA RIYA DH
A J MA AJ MAN N PA PA L A CE, A LUXURY L UXURY COL COLL L ECTION HOTEL
W AB ABU U DHABI DHABI
SHERATON DUB SHERATON DUB A I SHEIKH ZAYED ROAD
SHERATON SHARJAH
STARWOOD’S MIDDL MI DDLE E EAST EAST ADVANTAGE » First mov over er advantage advantage » Stron Strong g local local bran brand d recogn recognition ition » Deep local local relationsh relationships ips » Lead Leading ing loyalty loyalty program programand global infrastructure » Inn nnov ovative ative Food and Beverage Programs » Best in clas class s talent talent
SHERATON DUBAI MALL OF THE EMIRATES HOTEL
WESTIN DUBAI MINA SEYAHI BEACH RESORT & MARINA
