Starwood 2004 Annual Report Download - page 40

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We had the following commercial commitments outstanding as of December 31, 2004 (in millions):
Amount of Commitment Expiration Per Period
Less Than After
Total 1 Year 1-3 Years 4-5 Years 5 Years
Standby letters of creditÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $125 $125 $Ì $Ì $Ì
Hotel loan guarantees(1)(2)ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 67 Ì Ì 37 30
Other commercial commitments ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ Ì Ì Ì Ì Ì
Total commercial commitments ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $192 $125 $Ì $37 $30
(1) Excludes fair value of guarantees which are reÖected in our consolidated balance sheet.
(2) Excludes a debt service guarantee since no substantial debt has been drawn.
In January 2004, we acquired a 95% interest in Blissworld LLC which operates three stand alone spas
(two in New York, New York and one in London, England) and a beauty products business with distribution
through its own internet site and catalogue as well as through third party retail stores. The purchase price for
the acquired interest was approximately $25 million, and was funded from available cash.
We intend to Ñnance the acquisition of additional hotel properties (including equity investments), hotel
renovations, VOI construction, capital improvements, technology spend and other core business acquisitions
and investments and provide for general corporate purposes through our credit facilities described below,
through the net proceeds from dispositions, through the assumption of debt and through the issuance of
additional equity or debt securities.
We periodically review our business to identify properties or other assets that we believe either are non-
core (including hotels where the return on invested capital is not adequate), no longer complement our
business, are in markets which may not beneÑt us as much as other markets during an economic recovery or
could be sold at signiÑcant premiums. We are focused on restructuring and enhancing real estate returns and
monetizing investments and from time to time, attempt to sell these identiÑed properties and assets. There can
be no assurance, however, that we will be able to complete dispositions on commercially reasonable terms or at
all.
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