Starwood 2004 Annual Report Download - page 21

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Growth Opportunities. Management has identiÑed several growth opportunities with a goal of enhanc-
ing our operating performance and proÑtability, including:
¬Continuing to expand our role as a third-party manager of hotels and resorts. This allows us to expand
the presence of our lodging brands and gain additional cash Öow generally with modest capital
commitment;
¬Franchising the Sheraton, Westin, Four Points by Sheraton and Luxury Collection brands to selected
third-party operators and licensing the Westin, W and St. Regis brand names to selected third parties
in connection with luxury residential condominiums, thereby expanding our market presence, enhanc-
ing the exposure of our hotel brands and providing additional income through franchise and license
fees;
¬Expanding our internet presence and sales capabilities to increase revenue and improve customer
service;
¬Continuing to grow our frequent guest program, thereby increasing occupancy rates while providing our
customers with beneÑts based upon loyalty to our hotels and vacation ownership resorts;
¬Enhancing our marketing eÅorts by integrating our proprietary customer databases, so as to sell
additional products and services to existing customers, improve occupancy rates and create additional
marketing opportunities;
¬Optimizing use of our real estate assets to improve ancillary revenue, such as condominium sales and
restaurant, beverage and parking revenue from our hotels and resorts;
¬Continuing to build the ""W'' hotel brand to appeal to upscale business travelers and other customers
seeking full-service hotels in major markets by, among other things, placing Bliss Spas»and Bliss
branded amenities in ""W'' hotels and expanding the W brand to resorts, in non-urban areas;
¬Innovations such as the Heavenly Bed» and Heavenly Bath», the Sheraton Sweet Sleeper
SM
Bed, the
Sheraton Service Promise
SM
and the Four Points by Sheraton Four Comfort Bed
SM
;
¬Renovating, upgrading and expanding our branded hotels to further our strategy of strengthening brand
identity;
¬Developing additional vacation ownership resorts and leveraging our hotel real estate assets where
possible through VOI construction and residential or condominium sales;
¬Leveraging the Bliss product line and distribution channels; and
¬Increasing operating eÇciencies through increased use of technology.
We intend to explore opportunities to expand and diversify our hotel portfolio through internal
development, minority investments and selective acquisitions of properties domestically and internationally
that meet some or all of the following criteria:
¬Luxury and upscale hotels and resorts in major metropolitan areas and business centers;
¬Major tourist hotels, destination resorts or conference centers that have favorable demographic trends
and are located in markets with signiÑcant barriers to entry or with major room demand generators
such as oÇce or retail complexes, airports, tourist attractions or universities;
¬Undervalued hotels whose performance can be increased by re-branding to one of our hotel brands, the
introduction of better and more eÇcient management techniques and practices and/or the injection of
capital for renovating, expanding or repositioning the property;
13