Starwood 2007 Annual Report Download - page 69

vacation ownership resorts and selling VOIs; and investing in 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
significant 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 implementation of our strategy and
financial planning are impacted by the uncertainty relating to geopolitical 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:
• 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 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
Superfoods»menu, 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, aloft’s “see green” program created to introduce and promote ecologically friendly
programs and services; our newest innovation, the Link@Sheraton
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; and (iii) by placing Bliss»Spas,
Remède
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Spas and their branded amenities, including the Sheraton Shine»by Bliss bath product line, and
upscale restaurants in certain of our branded hotels;
• 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 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;
• Franchising 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;
• 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 benefits based upon loyalty to our hotels, vacation ownership resorts and branded residential
projects;
• Enhancing 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;
• Increasing operating efficiencies through increased use of technology;
• Optimizing use of our real estate assets to improve ancillary revenue, such as restaurant, beverage and
parking revenue from our hotels and resorts;
• Establishing relationships with third parties to enable us to provide attractive restaurants, programs and other
amenities at our branded properties such as our partnering with Jean Georges Vongerichten and his world-
class restaurant concepts, the opening of Adour with Alaine Ducasse at the St. Regis New York and
establishing the LM 100, a group of cultural innovators and artists who will offer their creativity and develop
original and interactive programs for Le Méridien hotels ;
• Developing additional vacation ownership resorts and leveraging our hotel real estate assets where possible
through VOI construction or conversion and residential sales; and
• Leveraging the Bliss and Remède product lines and distribution channels, most recently unveiling our
Sheraton Shine»by Bliss bath product line.
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