Starwood 2012 Annual Report Download - page 4

The global recovery continued through
2012, despite changing governments and
economic uncertainty. The major trends
driving growth in demand for high-end
travel enabled Starwood to perform well.
By the numbers, we:
» Grew Same Store Worldwide RevPAR by
5% in constant dollars and Management
and Franchise Fees by over 10%
» Opened 69 hotels, with nearly 18,000
rooms, including the Sheraton Macao,
our largest hotel
» Signed 131 deals for new hotels, growing
our pipeline to 400 hotels, with 100,000
rooms
» Sold eight hotels for $540 million
» Invested over $300 million in our owned
hotels, including trophy properties like the
Gritti Palace in Venice and the Alfonso XIII
in Seville
» Generated $684 million in residential sales
at The St. Regis Bal Harbour Resort
» Returned over $550 million to stockholders
by increasing our dividend by 150% and
repurchasing 6.3 million shares
We delivered these results thanks to the
efforts and expertise of our 171,000
associates in nearly 100 countries.
UNPRECEDENTED GROWTH
IN GLOBAL TRAVEL
We are putting the final touches on this
letter from our month-long relocation to
Dubai. Our executive team is here to see
firsthand the development in this new
global crossroads and to work side by side
with our local teams to continue our growth.
Dubai can already lay claim to being
second only to New York as the city with
the largest number of Starwood hotels (14).
Fueling the growth in travel and demand
for hotels in Dubai and other markets is
the rising global middle class, which is
expected to grow from 2 billion to nearly
5 billion people in the next 20 years. New
cities are being built, old ones expanded
and more people than ever before have
the means to travel. The construction of
roads, rail and airports is creating demand
for hotels in places where it never existed
before. And a more connected world
means more global business and more
executives traveling to new markets in
search of opportunities. The result already
is rapid growth in passenger traffic in
airports like Dubai, Chongqing, São Paulo
and Moscow.
We believe we are on the cusp of a golden
age in high-end travel and that Starwood
is uniquely positioned to outgrow our
competitors. We have the most global
portfolio of high-end, compelling brands;
local-smart teams with decades of
experience in markets around the world;
and a first-mover advantage in places like
China, India, the Middle East and Africa.
SUSTAINING INNOVATION
Innovation is what lies behind our brands,
enabling them to stand out in a crowded
marketplace and offering travelers distinct
experiences. Starwood’s history of game-
changing ideas goes back to the creation
DEAR FELLOW
STOCKHOLDERS
+5%
SAME STORE
WORLDWIDE REVPAR
IN CONSTANT
DOLLARS
+10%
MANAGEMENT AND
FRANCHISE FEES
69
HOTELS OPENED,
WITH NEARLY
18,000
ROOMS
131
SIGNED DEALS
FOR NEW HOTELS,
GROWING
OUR PIPELINE TO
400
HOTELS
$550+
MILLION RETURNED
TO SHAREHOLDERS