Starwood 2005 Annual Report Download - page 8

While we focus on the luxury and upscale portion of the full-service lodging, vacation ownership and
residential markets, our brands cater to a diverse group of sub-markets within this market. For example, the
St. Regis hotels cater to high-end hotel and resort clientele while Four Points by Sheraton hotels deliver
extensive amenities and services at more aÅordable rates. The newly announced aloft brand will provide a
youthful alternative to the ""commodity lodging'' of currently existing brands in the select-service market
segment.
We derive our cash Öow from multiple sources within our hotel and vacation ownership and residential
segments, including owned hotels activity and management and franchise fees, and are geographically diverse
with operations around the world. The following tables reÖect our hotel and vacation ownership and residential
properties by type of revenue source and geographical presence by major geographic area as of December 31,
2005:
Number of
Properties Rooms
Owned hotels(a) ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 130 47,000
Managed and unconsolidated joint venture hotels ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 378 121,000
Franchised hotels ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 337 90,000
Vacation ownership resorts and residential properties ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 19 6,000
Total properties ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 864 264,000
(a) Includes wholly owned, majority owned and leased hotels.
Number of
Properties Rooms
North America ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 431 149,000
Europe, Africa and the Middle East ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 259 64,000
Latin America ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 55 12,000
Asia PaciÑcÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 119 39,000
Total ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 864 264,000
Business Segment and Geographical Information
Incorporated by reference in Note 23. Business Segment and Geographical Information, in the notes to
Ñnancial statements set forth in Part II, Item 8. Financial Statements and Supplementary Data.
Business Strategy
We recently announced a strategy of reducing our investment in owned real estate and increasing our
focus on the management and franchise business. In furtherance of this strategy, we have sold and entered into
agreements to sell hotels, including the agreement to sell 38 properties to Host Marriott Corporation (""Host''
or ""Host Marriott'') for approximately $4.1 billion (based on the closing price of Host's stock immediately
prior to the announcement of the transaction). As a result, our primary business objective is to maximize
earnings and cash Öow by increasing the number of our hotel management contracts and franchise
agreements; acquiring and developing vacation ownership resorts and selling VOIs; and holding real estate
assets where there is a strategic rationale for doing so which may include selectively acquiring interests in
additional assets and disposing of non-core hotels (including hotels where the return on invested capital is not
adequate) and ""trophy'' assets that may be sold at signiÑcant premiums. We plan to meet these objectives by
leveraging our global assets, broad customer base and other resources and by taking advantage of our scale to
reduce costs. The uncertainty relating to political and economic environments around the world and their
consequent impact on travel in their respective regions and the rest of the world, make Ñnancial planning and
implementation of our strategy more challenging.
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