Starwood 2005 Annual Report Download - page 9

Growth Opportunities. Management has identiÑed several growth opportunities with a goal of enhanc-
ing our operating performance and proÑtability, including:
¬Continuing to build our brands to appeal to upscale business travelers and other customers seeking full-
service hotels in major markets by establishing emotional connections to our brands by oÅering
signature experiences at our properties such as by placing Bliss» Spas, Remede
SM
Spas and their
branded amenities and upscale restaurants in certain of our branded hotels and by continuing our
tradition of innovation started with 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
and with such ideas as Westin being the Ñrst major brand to go ""smoke-free'' in North America;
¬Renovating, upgrading and expanding our branded hotels to further our strategy of strengthening brand
identity;
¬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, Luxury Collection, Le Mπeridien and aloft
brands to selected third-party operators and licensing the Sheraton, Westin, W and St. Regis brand
names to selected third parties in connection with luxury residential condominiums, thereby expanding
our market presence, enhancing 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 residential sales and
restaurant, beverage and parking revenue from our hotels and resorts;
¬Establishing relationships with third parties to enable us to provide attractive restaurants and other
amenities at our branded properties;
¬Developing additional vacation ownership resorts and leveraging our hotel real estate assets where
possible through VOI construction and residential sales;
¬Leveraging the Bliss and Remede product lines 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;
¬Development of an ""extended stay'' product by Westin;
¬Hotels or brands which would enable us to provide a wider range of amenities and services to
customers or provide attractive geographic distribution;
¬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;
5