a new luxury for a new generation · luxury is a ~$1.3t industry 3 source: bcg consulting insights...

©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

2

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

17

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

57

ST. REGIS THE ST. REGIS FLORENCE, FLORENCE, ITALY

18

19

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)

20

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

21

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

22

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

23

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

©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.

The Restoration of Four European Icons

©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.

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.

• All stories on LC Global

Explorers Site

• Each video is tagged and

can be shared on social

media

• US Stories Include: Waris Ahluwalia – Designer

Jay McInerney – Author

Chanel Iman – Model

Geoffrey Zakarian – Chef

Cynthia Rowley – Designer

Dana Cowin – Editor

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W HOTELS

WORLDWIDE

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Worldwide, Inc.

©2011 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.

W BANGKOK

OPENED: DECEMBER, 2012

©2011 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.

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

©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.

Thank You

paul.james@starwoodhotels.com

+1 212 380 4025