Starwood 2012 Annual Report Download - page 101

and Element brands) represent full-service properties that range in amenities from luxury hotels to more
moderately priced hotels. Our Four Points by Sheraton, Aloft and Element brands are select-service properties
that cater to more value oriented consumers.
Our operations are in geographically diverse locations around the world. The following tables reflect our
hotel and vacation ownership and residential properties by type of revenue source and geographical presence by
major geographic area as of December 31, 2012:
Number of
Properties Rooms
Managed and unconsolidated joint venture hotels ....................... 547 183,000
Franchised hotels ................................................. 521 127,700
Owned hotels (a) .................................................. 53 17,300
Vacation ownership resorts and stand-alone properties ................... 13 7,400
Total properties .................................................. 1,134 335,400
(a) Includes wholly owned, majority owned and leased hotels.
Number of
Properties Rooms
North America (and Caribbean) ..................................... 576 181,100
Europe ......................................................... 164 39,700
Asia Pacific ..................................................... 243 77,800
Africa and the Middle East ......................................... 80 21,100
Latin America (and Mexico) ........................................ 71 15,700
Total properties .................................................. 1,134 335,400
On July 1, 2012, we completed an internal management reorganization related to our former hotel segment.
Whereas our hotel business had previously been included in a single reportable segment, as a result of this
reorganization, these results are now segregated into three separate hotel segments: (i) the Americas, (ii) Europe,
Africa and the Middle East (“EAME”), and (iii) Asia Pacific. The vacation ownership and residential business
remains a separate segment. Note 26 to the consolidated financial statements presents further information about
our segments.
For a discussion of our revenues, profits, assets and reportable segments, see our consolidated financial
statements of this Annual Report, including the notes thereto.
The Corporation was incorporated in 1980 under the laws of Maryland. Sheraton and Westin, Starwood’s
largest brands, have been serving guests for more than 60 years. Starwood Vacation Ownership (and its
predecessor, Vistana, Inc.) has been selling vacation ownership interests (“VOIs”) for more than 30 years.
Our principal executive offices are located at One StarPoint, Stamford, Connecticut 06902, and our
telephone number is [phone].
Hotel Business
Managed and Franchised Hotels. Hotel and resort properties in the United States are often owned by
entities that do not manage hotels or own a brand name. Hotel owners typically enter into management contracts
with hotel management companies to operate their hotels. When a management company does not offer a brand
affiliation, the hotel owner often chooses to pay separate franchise fees to secure the benefits of brand marketing,
centralized reservations and other centralized administrative functions, particularly in the sales and marketing
area. We believe that companies, such as Starwood, that offer both hotel management services and well-
established worldwide brand names appeal to hotel owners by providing the full range of management,
marketing and reservation services. In 2012, we opened 68 managed and franchised hotels with approximately
17,500 rooms, and 20 managed and franchised hotels with approximately 4,200 rooms exited our system.
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