Starwood 2006 Annual Report Download - page 12

taking advantage of our scale to reduce costs. The implementation of our strategy and financial planning are
impacted by 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.
Growth Opportunities. Management has identified several growth opportunities with a goal of enhancing
our operating performance and profitability, including:
kContinuing 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 offering signature
experiences at our properties. We plan to accomplish this in the following ways: (i) by continuing our
tradition of innovation started with the Heavenly Bed»and Heavenly Bath», the Westin Heavenly Spa, the
Sheraton Sweet Sleeper
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Bed, the Sheraton Service Promise
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and the Four Points by Sheraton Four
Comfort Bed
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; (ii) with such ideas as Westin being the first major brand to go “smoke-free” in North
America and aloft’s “see green” program created to introduce and promote ecologically friendly programs
and services; and (iii) by placing Bliss»Spas, Remede
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Spas and their branded amenities and upscale
restaurants in certain of our branded hotels;
kRenovating, upgrading and expanding our branded hotels to further our strategy of strengthening brand
identity;
kContinuing to expand our role as a third-party manager of hotels and resorts including through the roll out of
our new brands, aloft and Element, and the introduction of other new brands. This allows us to expand the
presence of our lodging brands and gain additional cash flow generally with modest capital commitment;
kFranchising certain of our brands to third-party operators and licensing certain of our brands to 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;
kExpanding our internet presence and sales capabilities to increase revenue and improve customer service;
kContinuing to grow our frequent guest program, thereby increasing occupancy rates while providing our
customers with benefits based upon loyalty to our hotels, vacation ownership resorts and branded residential
projects;
kEnhancing our marketing efforts 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;
kOptimizing use of our real estate assets to improve ancillary revenue, such as restaurant, beverage and
parking revenue from our hotels and resorts;
kEstablishing relationships with third parties to enable us to provide attractive restaurants and other amenities
at our branded properties;
kDeveloping additional vacation ownership resorts and leveraging our hotel real estate assets where possible
through VOI construction or conversion and residential sales;
kLeveraging the Bliss and Remede product lines and distribution channels; and
kIncreasing operating efficiencies 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:
kLuxury and upscale hotels and resorts in major metropolitan areas and business centers;
kHotels or brands which would enable us to provide a wider range of amenities and services to customers or
provide attractive geographic distribution;
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