Starwood 2003 Annual Report Download - page 20

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Item 1. Business.
General
Starwood is one of the world's largest hotel and leisure companies. Starwood's status as one of the leading
hotel and leisure companies resulted from the 1998 acquisitions of Westin Hotels & Resorts Worldwide, Inc.
and certain of its aÇliates (""Westin'') (the ""Westin Merger'') and ITT Corporation (the ""ITT Merger''),
renamed Sheraton Holding Corporation (""Sheraton Holding'') and the 1999 acquisition of Vistana Inc.
(renamed Starwood Vacation Ownership, Inc. or ""SVO''). The Company conducts its hotel and leisure
business both directly and through its subsidiaries. The Company's brand names include St. Regis», The
Luxury Collection», Sheraton», Westin», W» and Four Points» by Sheraton. Through these brands, Starwood
is well represented in most major markets around the world. The Company's operations are grouped into two
business segments, hotels and vacation ownership operations.
The Company's revenue and earnings are derived primarily from hotel operations, which include the
operation of the Company's owned hotels; management and other fees earned from hotels the Company
manages pursuant to management contracts; and the receipt of franchise and other fees.
The Company's hotel business emphasizes the global operation of hotels and resorts primarily in the
luxury and upscale segment of the lodging industry. Starwood seeks to acquire interests in, or management or
franchise rights with respect to properties in this segment. At December 31, 2003, the Company's hotel
portfolio included owned, leased, managed and franchised hotels totaling 738 hotels with approximately
229,000 rooms in 82 countries, and is comprised of 140 hotels that Starwood owns or leases or in which
Starwood has a majority equity interest, 286 hotels managed by Starwood on behalf of third-party owners
(including entities in which Starwood has a minority equity interest) and 312 hotels for which Starwood
receives franchise fees.
The Company's revenues and earnings are also derived from the development, ownership and operation of
vacation ownership resorts, marketing and selling VOIs in the resorts and providing Ñnancing to customers
who purchase such interests. At December 31, 2003, the Company had 18 vacation ownership resorts in the
United States and the Bahamas.
The Trust was organized in 1969, and the Corporation was incorporated in 1980, both under the laws of
Maryland. Sheraton Hotels & Resorts and Westin Hotels & Resorts, Starwood's largest brands, have been
serving guests for more than 60 years. Starwood Vacation Ownership (and its predecessor, Vistana, Inc.) has
been selling VOIs for more than 20 years.
The Company's principal executive oÇces are located at 1111 Westchester Avenue, White Plains,
New York 10604, and its telephone number is (914) 640-8100.
For a discussion of the Company's revenues, proÑts, assets and geographical segments, see the notes to
Ñnancial statements of this Joint Annual Report. For additional information concerning the Company's
business, see Item 2. Properties, of this Joint Annual Report.
Competitive Strengths
Management believes that the following factors contribute to the Company's position as a leader in the
lodging and vacation ownership industry and provide a foundation for the Company's business strategy:
Brand Strength. Starwood has assumed a leadership position in markets worldwide based on its superior
global distribution, coupled with strong brands and brand recognition. Starwood's upscale and luxury brands
continue to capture market share from competitors by aggressively cultivating new customers while
maintaining loyalty among the world's most active travelers. The strength of the Company's brands is
evidenced, in part, by the superior ratings received from the Company's hotel guests and from industry
publications. In 2003 Starwood had more than 40 of its top hotels on the Condπe Nast Traveler's 2003 Readers
Choice Awards List, including nine hotels on their ""Top 100 Best Hotels in the World.'' For the second year
in a row Starwood was named the ""World's Leading Hotel Group'' at the World Travel Awards and was again
designated as the ""World's Best Global Hotel Company'' by Global Finance magazine.
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