Starwood 2012 Annual Report Download - page 108

balance through a thoughtful, upscale environment. Decidedly modern with an emphasis on nature, Element is
intuitively constructed with an efficient use of space that encourages guests to stay connected, feel alive, and
thrive while they are away. Primarily all Element hotels are LEED certified, depicting the importance of the
environment in today’s world. Space to live your life.
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. We
believe 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). 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.
Intellectual Property
We operate in a highly competitive industry and our intellectual property, including brands, logos,
trademarks, service marks, and trade dress, is an important component of our business. The success of our
business depends, in part, on the increased recognition of our brands and our ability to further develop our brands
globally through the use of our intellectual property. To that end, we apply to register and renew our intellectual
property, enforce our rights against the unauthorized use of our intellectual property by third parties; and
otherwise protect our intellectual property through strategies and in jurisdictions where we reasonably deem
appropriate.
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 chlorofluorocarbons (“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
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