Starwood 2010 Annual Report Download - page 72

Our principal executive offices are located at 1111 Westchester Avenue, White Plains, New York 10604, and
our telephone number is [phone].
For discussion of our revenues, profits, assets and geographical segments, see the notes to financial statements
of this Annual Report. For additional information concerning our business, see Item 2 Properties, of this Annual
Report.
Competition
The hotel and timeshare industry is highly competitive. Competition is generally based on quality and
consistency of room, restaurant and meeting facilities and services, attractiveness of locations, availability of a
global distribution system, price, the ability to earn and redeem loyalty program points and other factors.
Management believes that we compete favorably in these areas. Our properties compete with other hotels and
resorts in their geographic markets, including facilities owned by local interests and facilities owned by national and
international chains. Our principal competitors include other hotel operating companies, national and international
hotel brands, and ownership companies (including hotel REITs).
We encounter strong competition as a hotel, residential, resort and vacation ownership operator. While some of
our competitors are private management firms, several are large national and international chains that own and
operate their own hotels, as well as manage hotels for third-party owners and sell VOIs, under a variety of brands
that compete directly with our brands.
Environmental Matters
We are subject to certain requirements and potential liabilities under various foreign and U.S. federal, state and
local environmental laws, ordinances and regulations (“Environmental Laws”). Under such laws, we could be held
liable for the costs of removing or cleaning up hazardous or toxic substances at, on, under, or in our currently or
formerly owned or operated properties. Such laws often impose liability without regard to whether the owner or
operator knew of, or was responsible for, the presence of such hazardous or toxic substances. The presence of
hazardous or toxic substances may adversely affect the owner’s ability to sell or rent such real property or to borrow
using such real property as collateral. Persons who arrange for the disposal or treatment of hazardous or toxic wastes
may be liable for the costs of removal or remediation of such wastes at the treatment, storage or disposal facility,
regardless of whether such facility is owned or operated by such person. We use certain substances and generate
certain wastes that may be deemed hazardous or toxic under applicable Environmental Laws, and we from time to
time have incurred, and in the future may incur, costs related to cleaning up contamination resulting from historic
uses of certain of our current or former properties or our treatment, storage or disposal of wastes at facilities owned
by others. Other Environmental Laws govern occupational exposure to asbestos-containing materials (“ACMs”)
and require abatement or removal of certain ACMs (limited quantities of which are present in various building
materials such as spray-on insulation, floor coverings, ceiling coverings, tiles, decorative treatments and piping
located at certain of our hotels) in the event of damage or demolition, or certain renovations or remodeling.
Environmental Laws also regulate polychlorinated biphenyls (“PCBs”), which may be present in electrical
equipment. A number of our hotels have underground storage tanks (“USTs”) and equipment containing chlo-
rofluorocarbons (“CFCs”); the operation and subsequent removal or upgrading of certain USTs and the use of
equipment containing CFCs also are regulated by Environmental Laws. In connection with our ownership,
operation and management of our properties, we could be held liable for costs of remedial or other action with
respect to PCBs, USTs or CFCs.
Congress and some states are considering or have undertaken actions to regulate and reduce greenhouse gas
emissions. New or revised laws and regulations or new interpretations of existing laws and regulations, such as those
related to climate change, could affect the operation of our hotels and/or result in significant additional expense and
operating restrictions on us. The cost impact of such legislation, regulation, or new interpretations would depend
upon the specific requirements enacted and cannot be determined at this time.
Environmental Laws are not the only source of environmental liability. Under common law, owners and
operators of real property may face liability for personal injury or property damage because of various
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