Profile: Starwood Hotels & Resorts Worldwide Inc (HOT)
26 Dec 2014
Starwood Hotels & Resorts Worldwide, Inc. (Starwood), incorporated on March 27, 1980, is a hotel and leisure company. The Company conducts its hotel and leisure business both directly and through its subsidiaries. Its brand names include The Luxury Collection (luxury full-service hotels and resorts), W (luxury and upscale full service hotels, retreats and residences), Westin (luxury and upscale full-service hotels, resorts and residences), Le Meridien (luxury and upscale full-service hotels, resorts and residences), Sheraton (luxury and upscale full-service hotels, resorts and residences), Four Points (select-service hotels), Aloft (select-service hotels), and Element (extended stay hotels). The Company is organized into two business segments: hotels and vacation ownership and residential. In May 2014, the Company sold its leasehold interest in Park Lane Hotel, London to Sir Richard Sutton's Settled Estates (SRSSE).
The Company manages hotels worldwide, under a long-term agreement with the hotel owner. Its responsibilities under hotel management contracts include hiring, training and supervising the managers and employees that operate these facilities. For additional fees, it provides centralized reservation services and coordinates national advertising and certain marketing and promotional services. It prepares and implements annual budgets for the hotels it manages and is responsible for allocating property-owner funds for periodic maintenance and repair of buildings and furnishings. In addition to its owned and leased hotels, at December 31, 2011, it managed 518 hotels with approximately 172,900 rooms worldwide. During 2011, it opened 49 managed hotels with approximately 14,000 rooms, and 11 managed hotels with approximately 4,000 rooms left its system. In addition, during 2011, it signed management agreements for 70 hotels with approximately 20,000 rooms.
Brand Franchising and Licensing
The Company franchises its Sheraton, Westin, Four Points by Sheraton, Luxury Collection, Le Meridien, Aloft and Element brand names and derives licensing and other fees from franchisees based on a fixed percentage of the franchised hotel’s room revenue, as well as fees for other services, including centralized reservations, sales and marketing, public relations and national and international media advertising. At December 31, 2011, there were 499 franchised properties with approximately 123,000 rooms. In addition to the franchise contracts it retained in connection with the sale of hotels during 2011, it opened 31 franchised hotels with approximately 7,000 rooms, and 20 franchised hotels with approximately 4,000 rooms left its system. In addition, during 2011, it signed franchise agreements for 42 hotels with approximately 9,000 rooms.
Vacation Ownership and Residential Business
The Company develops, owns and operates vacation ownership resorts, markets and sells the vacation ownership interests (VOIs) in the resorts and, in many cases, provides financing to customers who purchase such ownership interests. Owners of VOIs can trade their interval for intervals at other Starwood vacation ownership resorts, for intervals at certain vacation ownership resorts not otherwise sponsored by Starwood through an exchange company, or for hotel stays at Starwood properties. At December 31, 2011, the Company had 22 residential and vacation ownership resorts and sites in its portfolio with 17 actively selling VOIs and residences, including one unconsolidated joint venture.
Starwood Hotels & Resorts Worldwide Inc
STAMFORD CT 06902