W HONG KONG
STARWOOD IN
GREATER CHINA
QIAN JIN
PRESIDENT
GREATER CHINA
48GREATER CHINA REPRESENTS AN
UNMATCHED GROWTH OPPORTUNITY
Sources: imf.org., data.worldbank.org, cia.gov, international trade administration, US Department of Commerce
CHINA
US
Population
1.3B
0.3B
Metro Areas with
Population>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
STARWOOD – A LARGE BALANCED
FOOTPRINT 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:
36
22
13
8
27
14
23
6
63
36
36
14
0
10
20
30
40
50
60
70
Starwood
Marriott
Hilton
Hyatt
Pipeline - In Construction
Operating
Source: Smith Travel Research (STR) of April 2012
THE CLEAR LEADER IN GREATER CHINA
51
16
7
6
1
0
5
10
15
20
Starwood
Hilton
Marriott
Hyatt
Since 2010, Starwood has opened more hotel rooms in Greater
China than Marriott, Hilton and Hyatt COMBINED
OUR PIPELINE IN GREATER
CHINA IS DELIVERING…
52
GREATER CHINA – NEW OPENINGS
(by Rooms, ‘000s)
OUR GREATER
CHINA
ADVANTAGE
» First mover advantage
» Strong local brand
recognition
» Distinctive local programs
» Industry-leading pipeline
» Deep local leadership
team
» Best-in-class talent
building programs
» Award winning hotel
portfolio
53 W TAIPEI, TAIWAN
Guangzhou CCC Grand Opening Guangzhou CCC Grand Opening
STARWOOD’S 1ST MOVER
ADVANTAGE SETS IT APART
1985
: 1st int’l chain to open a branded hotel in mainland China
2012: 200 properties (operating, pipeline)
1st international chain to open a
branded hotel in China - The Great
Wall Sheraton Hotel Beijing
Opening of Largest Customer
Contact 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
thhotel in Greater ChinaSheraton Beijing Dongcheng Hotel
Opening of
50
thhotel in China -Sheraton Jinan Hotel, Shandong
2008
1985
2011
2012
1st int’l hotel chain to launch
Chinese Double Byte Booking Engine Double Happiness Celebration
200
properties (operating, pipeline)STRONG LOCAL BRAND RECOGNITION
International Hotel Group of the Year-STARWOOD HOTELS & RESORTS
from China Hotel Industry Awards 2011
2011 BEST HOTEL GROUP-STARWOOD HOTELS & RESORTS
from Travel & Leisure
THE BEST LUXURY HOTEL BRAND-WESTIN HOTELS & RESORTS
from Sohu China Service Award 2011
THE BEST BUSINESS HOTEL BRAND-SHERATON HOTELS & RESORTS
from Sohu China Service Award 2011
BEST MID RANGE HOTEL BRAND IN GREATER CHINA-FOUR POINTS
BY SHERATON
from TTG China Travel Award 2011
2011 BEST HOSPITALITY MANAGEMENT-STARWOOD HOTELS & RESORTS
from World Travel Awards 2011
2011 BEST INTERNATIONAL HOTEL GROUP-STARWOOD HOTELS & RESORTS
from Travel Weekly China 2011
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 China
are domestic travelers
China
24%
N.
America
19%
Europe
11%
Japan
8%
Pacific
1%
Other
37%
Source: Starwood internal data
2000
China
60%
N.
America
10%
Europe
9%
Japan
4%
Pacific
2%
Other
15%
2012 YTD
56STRONG 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 SPG
guests in the past two years
STARWOOD PERSONALIZED TRAVEL
Designed to cater to the unique needs of our
Chinese 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
HAINAN ISLAND
DIGITAL INNOVATION
“SPG 俱乐部” – 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
DEEP AND
GROWING SPG
PENETRATION
IN CHINA
» SPG drives more than
55% of room nights in
Greater China
» More than 60% growth
in SPG active members
in China in 2011
» Over 8% of SPG
members reside in
Greater China – the
largest pool of SPG
members outside of the
U.S.
1ST INTERNATIONAL HOTEL COMPANY
TO LAUNCH END-TO-END MANDARIN
BOOKING ENGINE
» Double byte booking engine launched in March 2011
» Innovative global marketing campaign leveraging social media
AUTHENTIC F&B PROGRAMS
»Signature breakfast dishes by brand and region
»Authentic regional dishes for our guests
»Chinese Restaurant Operational Manual
The 300 associates in the Guangzhou Customer Contact Center provide
customer service for Starwood’s Mandarin-speaking guests both in
China and around the world
»
Opening of the
largest international
hospitality
Contact Center
in China
»
Expanded to
180+ associates
»
+38% increase
in call volume in 2011
(~1M calls)
»
More than 300 associates
»
First Contact Centre in
China to receive LEED
certification
LARGEST HOTEL CUSTOMER CONTACT
CENTER IN CHINA
Qiandao Lake Hangzhou Ningbo Taipei Chung Ho Hsinchu 50 SHERATON 15 FOUR POINTS 16 WESTIN 5 ST. REGIS 8 LE MERIDIEN 2 W 5 ALOFT 2 LUXURY COLLECTION
OUR INDUSTRY-LEADING FOOTPRINT
EXTENDS WELL BEYOND THE
COASTAL MEGA-CITIES
Taicang Huizhou HongKong Shunde Shanghai Macau Haikou Zhongshan Jiangyin Lianyungang 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 HaiyangOPERATING
Source: Starwood internal data as of June 2012
Tianjin
Shanghai Nine Dragon Hill Ningbo Wenzhou Dalian Zhanjiang Zhuhai Heshan Guangzhou Yancheng Huzhou Nanjing Luohe Haitang Bay Haikou Macau Wuhan Kaifeng Hefei Hangzhou Chongqing Huizhou Beijing Tianjin Qingsui Bay Yilan Xi’an Nanchang Qingdao Zhengzhou Xiamen Ulaanbaatar Penghu Tangshan Yuhuan Yantai Taiyuan Chengdu Fuzhou Weifang Tufu Bay Xishuangbanna Shantou Erdos Shenyang Huangshan Nanning Shenzhen Changsha Diqing
OUR INDUSTRY-LEADING PIPELINE
REFLECTS OUR FOCUS ON THE
GROWING 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)
CASE STUDY – GROWTH STRATEGY
Tianjin
»
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
Hainan Island
Hainan Island
»
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
GREATER CHINA: OUR LEADERSHIP TEAM
Strong, local team with average 16 years of service with Starwood
SE
NIO
R
LEADERSHIP
Qian Jin President, Greater China
26 Years
REG
IO
NA
L
EX
COM
REG
IO
NA
L
LEADERSHIP
Alice Wong SVP Finance 15 Years Liu Wei Li VP Design &TS 6 Years Stephen Ford AMD South China12 Years
Josef Dolp MD, Sheraton Macau
16 Years Charlie Dang
AMD North China 19 Years
Charles Woo AMD HK & Macau
16 Years Michael Pross VP HR 26 Years Dean Lee VP Finance 2 Years Robert Zhang VP A&D 22 Years Christopher Zhang VP A&D Mid-Scale 2 Years Wendy Huang VP S&M 7 Years Harris Chan VP Operations, China 34 Years Duke Nam AMD Central/West China
15 Years Henry Xu Legal Counsel 3 Years Miguel Ko Non-Executive Chairman 25 Years of Service (before retirement in August 2012) Stephen Ho
President, Asia Pacific 31 Years
Daniel Aylmer AMD East China
16 Years
