a new luxury for a new generation · luxury is a ~$1.3t industry 3 source: bcg consulting insights...
TRANSCRIPT
©2012 STARWOOD HOTELS & RESORTS WORLDWIDE, INC. | Proprietary & Confidential
PAUL JAMES Global Brand Leader St. Regis, The Luxury Collection, W Hotels Worldwide
16th January 2013
Luxury FirstLook: Strategy 2013
A Luxury Daily event
A NEW LUXURY FOR A NEW GENERATION
©2012 STARWOOD HOTELS & RESORTS WORLDWIDE, INC. | Proprietary & Confidential
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LUXURY IS A ~$1.3T INDUSTRY
3 Source: BCG Consulting Insights
Similarly sized to Australia’s GDP, the world’s 13th largest economy
40
130
330 355
130 65 55 25 0
50100150200250300350400
GLOBAL MARKET FOR LUXURY GOODS AND SERVICES
TRADITIONAL LUXURY GOOD SECTORS OTHER LUXURY SECTORS
Largest spend category is
“experience” based
65 65 Luxu
ry S
pend
($B
)
“Look At the Trendlines NOT the Headlines”
William J. Clinton
VALUE LUXURY
ASSUMPTION SELF
RECORDED
Are Married 53% 83%
Want Others to recognize their Wealth 55% 11%
Worry about their Children’s Work Ethic 95% 50%
Worry their Friends only like them for their Money 73% 12%
Have compromised their Values to Make Money 65% 9%
N e v e r A s s u m e Taylor, Harrison & Kraus – Wealth in America (2005–07)
T h e R i c h A R E D i f f e r e n t f r o m Y o u & M e And Different from Any Wealthy Generation Before
B i g g e r , S t r o n g e r , F a s t e r , S m a r t e r The Industrial Revolution 2.0
T h e N e w E l i t e They Earn More & Spend More & Travel More & Tell Better Jokes
T h e R o a d t o D a v o s And the Start of the New Grand Tour
W e l c o m e t o G E N L u X u r Y The New Global Elite’s Most Powerful Tribe
G e t t i n g t o K n o w Y o u
The Dynamics of GEN LuXurY
MONEY
Global Brands – All buy the same stuff
Global Investments – All invest in the same products
Global Money – Have no Currency Patriotism
SELF
Self Made
Modest Backgrounds
Hard Working
Middle Class Values
Entrepreneurial
Global Travellers
Relationships
International Residences
BUSINESS
Every Company is Multinational
Every Company has a Global Market
International Board Membership
GEN LuXurY
BUSINESS: The World is
Flat
MONEY: Shared
Objects & Investments
SELF: Shared
Values & Experiences
G E N L u X u r Y Tribes & Tribulations
Neighbours
18%
Wrestlers
24%
Patrons
15%
Mavericks
13%
Directors
30%
WEALTH SEGMENTATION
T h e D i r e c t o r s C u t ( & S l i c e d ) 80% Male, 80% Married
The Directors (US) / Corporate Aristocracy (Global)
80% Owners/CEOs
73% Laissez-Faire Politically
Minimum 3 Cars
Minimum 2 Homes
Passions: Wine, Cigars, Cars, Travel, Books/Ideas
S o W h a t ? Or Why Did this matter to Starwood?
USA Wealthy Population (650k Households)
30% Are Directors
Directors Travel More (6 x 4-day Trips per annum)
ASSUME 50% of trips generate Luxury Hotel Room-nights
US-Based Directors ALONE will generate 2.4 Million room-nights in 2012
Equates to 89% Occupancy at St. Regis
H e a d l i n e : T h e S o l i p s i s t i c 1 % Trendline: Cash Rich/Time Poor Individuals Look to Quality & Family
“Seeing more of the world” remains a priority among Affluent Americans.
2013 Goals:
1. “Spend more time with friends & family”
2. “Quality in Life”
3. “Traveling More”
2012 Survey of Affluence & Wealth in America
E v e r y t h i n g w e d o i s D r i v e n b y Y o u - t h
STARWOOD LUXURY GROWTH
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St. Regis and W Hotels have more than doubled their portfolios since
2007, while Luxury Collection grew by 50%
ST. REGIS LUXURY COLLECTION W HOTELS
Source: ABCD as of March 31, 2012 Note: Pipeline is executed-only
13 15
3 9
0102030405060708090
100
# o
f H
ote
ls
40
56
23 7 7
0102030405060708090
100
# o
f H
ote
ls
19
23 2
13
0102030405060708090
100
# o
f H
ote
ls
92
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ST. REGIS THE ST. REGIS FLORENCE, FLORENCE, ITALY
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For Internal Use Only. ©2012 Starwood Hotels & Resorts Worldwide, Inc. All Rights Reserved.
2009 (18 Open)
Future Openings (+10 + Open)
Mexico City
2011 Openings (+6 = 27 Open) 2010 Openings (+3 = 21 Open)
Deer Valley San Francisco Aspen
Monarch Beach
Punta Mita
Princeville,
HI
Houston Atlanta
Washington, D.C.
New York
Bal Harbour (2012) Riviera Maya (2014)
Bahia Beach, Puerto Rico
London
Mallorca
Florence (2011) Rome
Mauritius (2012)
Bali
Singapore Kuala Lumpur (2014)
Bora Bora
Amman
(2015) Cairo (2014)
Saadiyat Island (2011)
Doha (2012)
Bangkok
(2011)
Osaka
Lhasa
Beijing
Shenzhen (2011) Zhuhai (2015)
Sanya Yalong Bay (2011)
Lijiang
(2014)
Tianjin (2011) Chengdu (2014)
Noida
(2016)
Changsa (2013)
FOOTPRINT & FUTURE St. Regis Hotels & Resorts
2012 Openings (+3 = 30 Open)
Abu Dhabi
(2013)
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For Internal Use Only. ©2012 Starwood Hotels & Resorts Worldwide, Inc. All Rights Reserved.
The St. Regis Shenzhen Dec. 2011
Total 297 Rooms: 257 Rooms, 40 Suites
Hotel #26
The St. Regis Saadiyat Island Resort, Abu Dhabi
Dec. 2011
Total 380 Rooms: 317 Rooms, 63 Suites
Hotel #27
T h e G r a n d T o u r D e b u t s
The St. Regis Bal Harbour Resort
Jan. 2012
Total 243 Rooms: 173 Rooms, 70 Suites
Hotel #28
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For Internal Use Only. ©2012 Starwood Hotels & Resorts Worldwide, Inc. All Rights Reserved.
The St. Regis Abu Dhabi April 2013
Total 283 Rooms: 228Rooms, 55 Suites
Hotel #31
The St. Regis Mauritius Resort November 2012
Total 172 Rooms: 122 Rooms, 49 Suites,
1four bedroom Villa
Hotel #30
T h e G r a n d T o u r D e b u t s
The St. Regis Doha
April 2012
Total 336 Rooms: 266 Rooms, 70 Suites
Jazz at Lincoln Center Doha
Hotel #29
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For Internal Use Only. ©2012 Starwood Hotels & Resorts Worldwide, Inc. All Rights Reserved.
London
New York
Singapore
Buenos Aires
Bangkok
Sao Paulo
Abu Dhabi
Beijing Bridgehampton
Greenwich
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For Internal Use Only. ©2012 Starwood Hotels & Resorts Worldwide, Inc. All Rights Reserved.
Abu Dhabi Pink Polo The St. Regis 1904 Polo Cup Singapore Pink Polo
The St. Regis International Cup Veuve Cliquot Polo Classic Sentebale Cup
THE LUXURY COLLECTION
24 BLUE PALACE, A LUXURY COLLECTION RESORT & SPA, ELOUNDA, GREECE
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The Restoration of Four European Icons
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The Luxury Collection Expands its Global Footprint,
Adding Key Destinations in Asia Pacific
KERATON AT THE PLAZA,
A LUXURY COLLECTION HOTEL,
JAKARTA, INDONESIA
THE ROYAL BEGONIA,
A LUXURY COLLECTION RESORT,
SANYA, CHINA
©2009 Starwood Hotels & Resorts Worldwide, Inc. All Rights Reserved. CONFIDENTIAL & PROPRIETARY May not be reproduced or distributed without written permission of Starwood Hotels & Resorts Worldwide, Inc.
ITC GRAND CHOLA,
A LUXURY COLLECTION HOTEL,
CHENNAI, INDIA
TWELVE AT HENGSHAN,
A LUXURY COLLECTION HOTEL,
SHANGHAI, CHINA
VANA BELLE,
A LUXURY COLLECTION RESORT,
KOH SAMUI, THAILAND
©2009 Starwood Hotels & Resorts Worldwide, Inc. All Rights Reserved. CONFIDENTIAL & PROPRIETARY May not be reproduced or distributed without written permission of Starwood Hotels & Resorts Worldwide, Inc.
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W HOTELS
WORLDWIDE
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Worldwide, Inc.
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W BANGKOK
OPENED: DECEMBER, 2012
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– may not be reproduced or distributed without written permission of Starwood Hotels & Resorts
Worldwide, Inc.
W GUANGZHOU OPENING: 2013 - Q1
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W VERBIER
OPENING: 2013 - Q4
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PASSION POINT
ACTIVATIONS
2012 W HOTELS &
BURN STUDIOS
DJ LAB +
GLOBAL TOUR
W HOTELS WORLDWIDE PRESENTS
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– may not be reproduced or distributed without written permission of Starwood Hotels & Resorts
Worldwide, Inc.
©2009 Starwood Hotels & Resorts Worldwide, Inc. All Rights Reserved. CONFIDENTIAL & PROPRIETARY May not be reproduced or distributed without written permission of Starwood Hotels & Resorts Worldwide, Inc.
TOUR DATES SEP. 5 W BANGKOK GIO
OCT. 12 W HONG KONG POSSO
OCT. 13 + 14 ELLE FASHION WEEK POSSO
OCT. 18 - 20 W SINGAPORE ALL DJS
OCT. 21 W BALI POSSO
OCT. 23 + 24 W SEOUL POSSO
OCT. 26 W TAIPEI GIO
NOV. 29 - DEC. 1 W SANTIAGO VITOR
NOV. 30 W ST. PETERSBURG GIO
DEC. 1 W HONG KONG ALINE
DEC. 21 W TAIPEI DOGUS
DEC. 31 W HONG KONG GIO
DEC. 31 W BALI LONDON BEATS
DEC. 5 W BARCELONA ALINE
TBD W PARIS - OPERA TBD
TBD W LONDON TBD
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