starwood in the middle east zayed road – now » uae's hospitality market » revenues of $7.5b...
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©2013 STARWOOD HOTELS & RESORTS WORLDWIDE, INC. | Proprietary & Confidential
GUIDO DE WILDE // SVP, REGIONAL DIRECTOR – MIDDLE EAST
STARWOOD IN THE MIDDLE EAST
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FORWARD-LOOKING STATEMENTS These presentations contain forward-looking statements within the meaning of federal securities regulations. These forward-looking statements generally can be identified by phrases such as Starwood or its management “believes,” “expects,” “anticipates,” “foresees,” “forecasts,” “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.
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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
WESTIN DUBAI MINA SEYAHI BEACH RESORT & MARINA
SHERATON DUBAI MALL OF THE EMIRATES HOTEL
» First mover advantage » Strong local brand recognition » Deep local relationships » Leading loyalty program 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)
FIRST-MOVER ADVANTAGE
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THE LARGEST LUXURY/UPPER –UPSCALE HOTEL COMPANY IN THE MIDDLE EAST
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0
10
20
30
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50
Starwood Marriott Hilton Hyatt
MIDDLE EAST HOTELS
FIRST-MOVER ADVANTAGE
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
FIRST-MOVER ADVANTAGE
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ACCELERATING GROWTH
45 HOTELS TODAY
80 HOTELS IN 2016
100 HOTELS IN 2019
FIRST-MOVER ADVANTAGE
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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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STARWOOD’S MIDDLE EAST ADVANTAGE
WESTIN DUBAI MINA SEYAHI BEACH RESORT & MARINA
SHERATON DUBAI MALL OF THE EMIRATES HOTEL
» First mover advantage » Strong local brand recognition » Deep local relationships » Leading loyalty program and
global infrastructure » Innovative Food and Beverage
Programs » Best in class talent
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