Starwood 2004 Annual Report Download - page 25

Westin Hotels & Resorts (luxury and upscale full-service hotels and resorts) are Ñrst-class, signature
hotels that typically make up an integral part of a city or region in which the hotels are located. Westin hotels
and resorts are characterized by a commitment to uncompromised elegance, service and guest experience.
W Hotels (stylish boutique full-service urban hotels and resorts) was inaugurated in December 1998 with
the opening of the W New York. W hotels provide a unique hotel alternative to business travelers, combining
the personality, style and distinctive Öavor of an intimate hotel with the functionality, reliability and attentive
service of a major business and leisure hotel. W hotels feature modern, sophisticated design with custom-made
furnishings and accessories, fully wired rooms with the most advanced technology in the industry, and unique,
high-quality signature restaurants and bars. Together with partners, we are in the process of developing several
condominium residences as part of the W hotels, including the W Dallas Victory Hotel and Residences which
is expected to open in late 2005.
Four Points by Sheraton (moderately priced full-service hotels) deliver extensive amenities and services
such as room service, dry cleaning, Ñtness centers, meeting facilities and business centers to frequent business
travelers at reasonable prices. These hotels provide a comfortable, well-appointed room, which typically
includes a two-line telephone, a large desk for working or in-room dining, comfortable seating and full-service
restaurants.
Hotel Business
Owned, Leased and Consolidated Joint Venture Hotels. The following table summarizes revenue per
available room (""REVPAR'')(1), average daily rates (""ADR'') and average occupancy rates on a year-to-year
basis for our 138 owned, leased and consolidated joint venture hotels (excluding 26 hotels sold or closed during
2004 and 2003) (""Same-Store Owned Hotels'') for the years ended December 31, 2004 and 2003:
Year Ended
December 31,
2004 2003 Variance
Worldwide (138 hotels with approximately 49,000 rooms)
REVPAR ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $110.81 $ 98.03 13.0%
ADR ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $161.74 $151.49 6.8%
Occupancy ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 68.5% 64.7% 3.8
North America (93 hotels with approximately 36,000 rooms)
REVPAR ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $110.13 $ 98.21 12.1%
ADR ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $156.65 $147.15 6.5%
Occupancy ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 70.3% 66.7% 3.6
International (45 hotels with approximately 13,000 rooms)
REVPAR ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $112.72 $ 97.52 15.6%
ADR ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $177.57 $165.37 7.4%
Occupancy ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 63.5% 59.0% 4.5
(1) REVPAR is calculated by dividing room revenue which is derived from rooms and suites rented or leased, by total room nights
available for a given period. REVPAR may not be comparable to similarly titled measures such as revenues.
During the years ended December 31, 2004 and 2003, we invested approximately $299 million, excluding
the inventory expenditures at the St. Regis Museum Tower in San Francisco, California discussed below, and
$259 million, respectively, for capital improvements at owned hotels and capital expenditures on technology
development. During 2004 and 2003, these capital expenditures included the signiÑcant renovation of our
Öagship Sheraton, the Sheraton New York Hotel and Towers in New York, New York.
Managed and Franchised Hotels. Hotel and resort properties in the United States are often owned by
entities that do not manage hotels or own a brand name. Hotel owners typically enter into management
contracts with hotel management companies to operate their hotels. When a management company does not
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