Company profile : StarwoodHotels & ResortsWorldwide Inc.

FY 2010

2

Starwood vs. its Main CompetitorsR

oom

s ne

twor

k as

of e

nd o

f yea

r, 20

10

Source : Companies annual reports except for Hilton network, Accor internal data

88%

86%

85%

83%

68%

61%

56% 28%

Worldwide excluding the US

208 Kr

366Kr

In ‘000 rooms

EMEA Americas

Starwood 7th global player in the hospitality business

1st

647

613

605

~600

507

495

302

Network

13%19%

8% 9%

8%7%

10% 4%

16%

7%5%

20%19%

Roo

ms

pipe

line

as o

f end

of y

ear,

2010

In ‘000 roomsPipeline

Starwood has the 6th pipeline worldwide,stable compared to 2009

205

103

105

138

101

51

85

NB: Figures include traditional lodging and extended stay units but exclude timeshare products

APACVs

end 2009

-3%

-5%

+5%

+6%

0%

-24%

0%

(2)

(2) Hilton pipeline based on an internal press release, January 2011(1) Hilton geographical breakdown based on 2009 figures

(1)

Pipeline

3

1. Company overview Slide 4

2. Company organization Slide 5

3. Brand positioning Slide 6

4. Geographical breakdown Slide 7

5. Room portfolio Slide 8

6. Operating mode Slide 9

7. Group strategy Slide 11

8. Pipeline and lodging development Slide 13

9. Key figures Slide 14

10. SWOT analysis Slide 17

11. Company history Slide 18

12. Brands description Slide 19

13. Accor + Starwood Slide 19

4

– 7th global player in the hospitality business with 308,736 r.– 1,041 hotels, including 14 vacation ownerships– 9 main brands, mostly upper-upscale and luxury segments– 145,000 employees– American company

– Funded in 1969, Starwood is present in 3 main segments– Traditional lodging industry (from midscale to luxury)– Extended stay segment– Timeshare segment

– Worldwide location– But concentration in North America (53% of room network)– Few hotels in South America (6%)

Description

Financials

Ownership

1. Company overview

Owners Stake

Float 100,0%

Waddell & Reed Financial Inc 10,1%T. Rowe Price Associates 7,1%

Fidelity Management & Research 5,1%

Source: Reuters, as of March 7, 2011

2009 2010E 2011E 2012EFinancials (M$)

Revenue 4 696 5 071 5 229 5 768% Change in Revenue 8,0% 3,1% 10,3%

EBITDA 793 879 997 1 160EBITDA margin 16,9% 17,3% 19,1% 20,1%

Net Profit (pre excep) 188 237 321 444Net margin 4,0% 4,7% 6,1% 7,7%

Market Data (M$)Market Cap 11 370

NetworkHotels 992 1,041Rooms 298 522 308 700

Main figures

7%

52%

39%

2%

Operating type

Franchise TimeshareO&L Management

20%

20%60%

Geographical breakdown

APAC

EMEA

Americas

# rooms

Mid-Lux 1,027 301,736

# hotels

66.6% 160.0$ 106.6$ADROR Revpar

segment

5

Full & limited service segment

Timesharesegment

Extended stay segment

2. Company organization

3. Brand positioning & strategy (1/2)

6

LeisureBusiness “New Generation” niche

Authentic LuxuryBespoke services Unique / Local

Group of hotels

TrendsetterDesign / Innovation

Extended stayEco-friendly

Casual / UrbanSuites

Upscale

High-end luxury

Midscale

Upper upscale

Pric

e se

gmen

tatio

n

Lifestyle segmentation

19 h.

38 h.

76 h.

6 h.45 h.

100 h.

Bus. & LeisureChic and culturedFrench heritage

Focus European market

176 h.

Bus. & LeisureComfort / Wellness

Global standardsFocus US market

403 h.Bus. & Leisure

Accessibility / Conviviality

158 h.

Network figures as of end 2010

BusinessComfort / Functional

Starwood – Company profileDecember 2010

Sources: Starwood website and reports, Network figures as of end 2010

Each brand (except on the luxury pole) is under a flagship umbrella in terms of communication and logo:

– Luxury pole 1 brand / 1 label• St Régis : Starwood luxury brand mainly in urban

environment• The Luxury Collection : more a label than a

brand (hotels are not branded and keep their original name), more in leisure environment

– Westin pole  1 flagship brand / 4 associated brands• Westin : Starwood upper-upscale flagship brand

(mainly US and Asia markets)• W : a trendy declinaison with Westin design • Le Méridien : Westin declinaison on European

markets with a trendy / smart touch • A loft : A W midscale declinaison with a more

limited service• Element : the Westin extended stay declinaison– Sheraton  pole 1 strong brand and a recently

brand associated• Sheraton : the upscale Starwood flagship

business and leisure oriented• Four Points : an upper midscale brand focused on

the business and MICE segment

Thanks to a clear segmentation, Starwood brands have a clear positioning avoiding cannibalization and addressing different demands

7

3. Brand positioning & strategy (2/2)Starwood has restructured its portfolio in 3 segments and has launched or revitalized some brands :Specialty select services : 3 brands in midscale

– with the launch of two brands Aloft and Elements – with the rejuvenation of Four Points by Sheraton

Full Services : 6 brands from upscale to luxury– With the $6bn revitalization program of Sheraton,

Starwood’s largest and most global brand

Starwood targets a consistent brand portfolio:All hotels must comply with its brand standards:

– “Cleaning-up” of Le Méridien and Sheraton resulting in a disposal of 20% of the hotels in the system

– 60% of hotels are brand new or freshly renovated A portfolio focused on upscale and luxury segment

but a clear segmentation to avoid any cannibalization− Introduction of a “lifestyle dimension” in addition to the

price based on 3 segments: Business, Leisure and New Generation each brand positioning corresponds to a crossing Lifestyle / price

– If networks are still heterogeneous, the Group’s communication is in line with this approach

8

4. Geographical Breakdown

45%

36%

3%14%2%

60%

18%8%14%

43% 38%

12%7%

North America538 h 169,191 r

56%

19%

Asia & Pacific181 h58,444 r

20%

Europe, Africa &Middle-East247 h61,348 r

4%

South America61 h12,753 r

Starwood – Company profileSeptember 2008

X%Share ofglobalnetwork

Luxury

Upper upscale

Upscale

Midscale

Hotel and room network1,027 h. / 301,736 r.*

(As of December 31, 2010)

*Figures do not include vacation ownership

47%34%

9%10%

Unbranded

H R H R H R H R

Upscale & Luxury 806 263 490 327 222 57 233 375 142 564 49 10 972 160 52 721 7% 58% 36%St Regis Luxury Sof itel Coll. 22 4 305 196 3 389 11 2 276 2 309 6 1 331 19% 78% 3%The Luxury Collection Luxury Sof itel Coll. 75 15 043 201 42 7 140 11 3 547 9 648 13 3 708 11% 51% 39%W Hotels Luxury So 38 11 206 295 3 1 050 29 8 926 2 433 4 797 26% 74% 0%Westin Up. Upscale Sof itel 176 68 488 389 21 6 552 115 49 213 6 1 563 34 11 160 7% 58% 35%Le Méridien Up. Upscale Sof itel 100 26 678 267 59 16 012 11 2 604 2 324 28 7 738 0% 84% 16%Sheraton Upscale Pullman 395 137 770 349 94 26 090 198 75 998 28 7 695 75 27 987 6% 51% 43%Midscale 212 36 818 174 25 4 115 154 25 199 12 1 781 21 5 723 9% 21% 71%Aloft (L) Midscale Novotel 46 6 827 136 2 555 41 5 785 3 487 4% 11% 85%

Four Points (L) Midscale Novotel 158 27 391 173 22 3 560 106 16 814 12 1 781 18 5 236 1% 25% 74%

Others 8 2 600 325 1 7 2 600 100%

Total Lodging 1 018 300 308 295 247 61 348 529 167 763 61 12 753 181 58 444 7% 53% 40%

Extended Stay 9 1 428 0 0 9 1 428 0 0 0 9% 0% 91%Element (L) Upscale 9 1 428 159 9 1 428 9% 0% 91%

Total Hotels 1 027 301 736 294 247 61 348 538 169 191 61 12 753 181 58 444 7% 53% 40%

Timeshare 14 7 000 500 13 6 618 1 382

Total 1 041 308 736 297 247 61 348 551 175 809 62 13 135 181 58 444Sources : 2010 10-K

timeshare = 2% of total network

Geographical repartition (italic=estimate) Operation mode (% rooms)Europe Af. M. East North Am. Sth Am. Asia Pac. Ow ned

& LeasedMnged Fchised

RoomsHotel av

SizeBreakdow n by brand Category

ACCORBrand Hotels

9

5. Room portfolio

2009 2010 Change

Occupancy rate 61,5% 66,6% 5,1Average Daily rate 158,5 160,0 0,9%RevPar 97,5 106,6 9,3%

7%

52%

39%

2%

10

Global network per operating mode(In room number)

Network 2000738 h / 227,000 rooms

Network 20101,041 h / 308,736

rooms

Franchise TimeshareOwned & Leased Management

22%

35%

42%

1%

Sources: Starwood’s2003 & 2010 annual reports

+81,736 rooms+36% over 10 years

6. Operating modeEvolution 2003- 2010

11 Source: Starwood’s FY results 2010

Brand* Hotels Rooms Ownership by brand

22 4,305

75 15,043

38 11,206

176 68,488

100 26,678

395 137,770

158 27,391

46 6,827

9 1,428

19% 78% 3%OwnedManagedFranchised

11% 51% 39%OwnedManagedFranchised

26% 74%OwnedManagedFranchised

58%7% 35%OwnedManagedFranchised

84% 16%OwnedManagedFranchised

51%6% 43%OwnedManagedFranchised

1%25% 74%

OwnedManagedFranchised

4%11%

85%OwnedManagedFranchised

9% 91%OwnedManagedFranchised

6. Operating modePer brand, 2010 FY

* Excluding unbranded hotels : 8 h. / 2,600 r. (100% owned)

12

Network 2010

1,041 properties308,736 rooms

– +341 hotels and 78,736 rooms– Increase in profitability– Increase in share of mgmt. and fra. contracts– Development of vacation ownership– Product innovation– Sheraton revitalization (2007, $6bn plan)– Launch of Aloft and Element (2008)

Source: Starwood’s Q4 2010 earnings Call transcript

Network 2000

738 hotels227,000 rooms

Recent Group Strategy

2011 Group Strategy

Expansion out of domestic market

Focus on Asia and especially China (pipeline : 27k rooms, i.e 40% of total)

Starwood is the most int’l of US players (40% out of the US)

Brand portfolio differentiation Unique and strong brand positioning through a lifestyle segmentation;

innovation / renovation to keep brands fresh

Product innovation Development of related products/services that enhance brand

experience and differentiation and deliver attractive economics

7. Group strategy

Increase the number of hotel management contracts and franchise agreement

Earnings and cash-flow maximization

13

– The company is still in the process of moving to an asset-light business model by selling owned hotels and non core assets as opportunities arise :

• Since 2000, the Company has sold 110 owned hotels for approximately $7.5 billion (including 33 properties it sold to Host Hotels in 2006, for approximately $4.1 billion)

• Since 2000,the company has added 338 Managed and franchised hotels (79 k r.) • Non Core business : Selling of multi-channel spa and retail product company Spa Bliss in

2009 (≈$100M)

– Keep hotel with high value/growth/returns

– Shift to higher margin fee business : management and franchise growth strategy

7. Group strategyAsset Light Strategy

Starwood has been focused on reducing its investment in owned real estate while simultaneously working to increase the revenue generated from its management & franchise business

Asset Light Strategy1

14

7. Group strategyDevelopment Strategy

Americas• Hotels openings will represent both

new built & conversion properties• Openings of 30 h. in 2010

Asia- PacificNorth Am. :

2 Development

– Starwood CEO expects to open 70-80 hotels in 2011, signing new projects and conversions

– Upper Upscale & Luxury brands should represent 60% of these new openings (Sheraton = 30% of Starwood’s pipeline)

– 84% will be outside USA, with a strong ambition in China & India

EMEA• Opening of 50 hotels in EMEA over

the next three to five years, including 12 hotels in 2011.

EMEA :

India :

China :

Latin Am. : • Openings of 6 hotels in 2011• Westin to debut in Peru, Mexico

and Panama in 2011

• 70 hotels in operation, 85 in the pipeline. In 2011, one in every three new Starwood hotels will open in China

• Starwood expects to operate 50 hotels in India by the end of 2012 and have 100 hotels under operation, development or management contracts signed by 2015

• Sheraton represents the largest portion of the Chinese pipeline with approximately 31 hotels.

• Seven hotels to open in 2011

15

7. Group strategyBrand strategy

3 Brand Strategy

Starwood has restructured its portfolio in 2 segments and has launched or revitalized some brands :Specialty select services : 3 brands in midscale

– with the launch of two brands Aloft and Elements – with the rejuvenation of Four Points by Sheraton

• In the past five years, Starwood and its partners have invested more than $1 billion to reinvent Four Points by Sheraton resulting in a 70 percent turnover of the portfolio driven by major property renovations, conversions and new-build hotels

Full Services : 6 brands from upscale to luxury– With the $6bn revitalization program of Sheraton, Starwood’s largest and most global brand

Starwood targets a consistent brand portfolio:Each brand designed to cater a specific sub marketsAll hotels must comply with its brand standards:

– “Cleaning-up” of Le Méridien and Sheraton resulting in a disposal of 20% of the hotels in the system– 60% of hotels are brand new or freshly renovated

16

8. Pipeline and lodging development

Development in previous years- 2006 : Opening of more than 50 hotels (14,000 rooms) and addition of 124 new properties in portfolio through the acquisition of Le Méridien while removing 58 properties- 2007 : Opening of 67 hotels and addition of 47,000 rooms to the pipeline- 2008 : Opening of 87 hotels and addition of 147 properties to the pipeline- 2009 : Opening of 83 hotels and addition of 77 properties to the pipeline- 2010 : Opening of 70 hotels (managed and franchised) and no addition to the pipeline

Development plan, as of December 2010:- 85,000 rooms in the active pipeline

- 61% of which is dedicated to the upper upscale and luxury categories

- Strong international development with 84% outside of the USA. Priority given to Asia (60% of the pipeline, mainly China – 45% of Starwood’s pipeline – and India)

Sources: Starwood’s 2010 annual report, Lodging Econometrics Q3 2010

South AmericaAPAC

EAMEUnited States

Pipeline breakdown in % of room total :

55%

5%

21%

19%

17 Starwood – Company profileDecember 2010

9. Key figuresP&L evolution & forecasts

In M$

Financials (in M$) 2000A 2001A 2002A 2003A 2004A 2005A 2006A 2007A 2008A 2009A 2010A 2011E 2012E CAGR 2003-2010Revenue 5 040 4 633 4 588 4 630 5 368 5 977 5 979 6 153 5 907 4 756 5 071 5 229 5 768 1,3%

% Change in Revenue 1,0% 0,0% 0,9% 15,9% 11,3% 0,0% 2,9% -4,0% -19,5% 6,6% 3,1% 10,3%EBITDA 1 509 1 094 1 039 856 1 084 1 229 1 145 1 164 942 793 879 997 1 160 0,4%

EBITDA margin 29,9% 23,6% 22,6% 18,5% 20,2% 20,6% 19,2% 18,9% 15,9% 16,7% 17,3% 19,1% 20,1%Net Profit 398 147 251 105 369 423 1 115 543 254 73 237 321 444 12,3%

Net margin 7,9% 3,2% 5,5% 2,3% 6,9% 7,1% 18,6% 8,8% 4,3% 1,5% 4,7% 6,1% 7,7%Sources: company reports and Reuters consensus estimates as of March, 4 2011

18

– Strong portfolio of internationally well-known hotel brands with a good image

– Innovation capacity (brand creation : Aloft, Element)

– Starwood excels in North America – Strong loyalty program

Strength

– High sensitivity to the economic fortunes of its domestic market (confinement to upscale and luxury segments)

– Dependence on North America– Limited presence in emerging markets – Old designed Sheraton network, requiring a

strong and expensive renovation program

Weaknesses

– Development of two new brands in the limited-service segment opening potential for new customers

– Consolidation of presence in Europe with the acquisition of Le Méridien

– Intensification of competition in mature markets is likely to favor major brands with high levels of consumer recognition and significant marketing resources

Opportunities

– Over reliance on upscale hotels may erode– Starwood‘s potential to boost sales in line with

consumer trends towards low-cost travel– Timeshare segment trend to be considered with

caution

Threats

10. SWOT analysis

19

11. Company history

- Acquisition of Le Méridien which greatly increased the company's operations in Europe- Launch of A Loft, a new hotel brand based on W hotels

- Starwood's founder and CEO Barry Sternlicht stepped down as CEO, to focus his attention on his other firm, Starwood Capital. He remained on the Board of Directors until 2005

- Change of the corporate form from an REIT to a C-Corporation- Acquisition of Vistana Inc. renamed Starwood Vacation Ownership

- Acquisitions of Westin H&R and ITT Sheraton Corporation - Starwood is removed from the S&P 500 as no REIT is allowed in the index.

- Starwood Capital takes control of a distressed NYSE listed company: Hotel Investors Trust, a REIT and renamed it Starwood Lodging (Starwood keeps its NYSE stock symbol, HOT)

- Barry Sternlicht forms Starwood Capital Partners in 1991 in Chicago backed by high net worth families specializing in real estate acquisitions. Starwood Capital buys its first hotels in 1993

- Launch of W Hotels, a new lifestyle brand

Source: Datamonitor company profiles

- Incorporation of Starwood

- Creation of Starwood

- Launch of Element, a new brand on the extended stay segment

2005

2004

1999

1998

1995

1991

1980

2006

1969

1997

20

Full Service

St Regis

The Luxury Collection

W Hotels

Westin

Le Meridien

Sheraton

Limited ServiceFour Points

Aloft

Extended Stay Element

Timeshare Starwood Vacation Ownership

Source: Starwood’s FY results 2010

12. Brands description

Starwood Brands PortfolioFrom midscale to luxury with clear lifestyle positioning

21

LeisureBusiness “New Generation” niche

Authentic LuxuryBespoke services Unique / Local

Group of hotels

TrendsetterDesign / Innovation

Extended stayEco-friendly

Casual / UrbanSuites

Upscale

High-end luxury

Midscale

Upper upscale

Pric

e se

gmen

tatio

n

Lifestyle segmentation

19 h.

38 h.

76 h.

6 h.45 h.

100 h.

Bus. & LeisureChic and culturedFrench heritage

Focus European market

176 h.

Bus. & LeisureComfort / Wellness

Global standardsFocus US market

403 h.Bus. & Leisure

Accessibility / Conviviality

158 h.

Network figures as of end 2010

BusinessComfort / Functional

Starwood – Company profileDecember 2010

9%50% 13% 27%North AmericaEMEAAPACSouth America

75%20% 5%OwnedManagedFranchised

15%13% 36% 37%North AmericaEMEAAPACSouth America

St. Regis19 hotels / 3,860 rooms

22

Luxury brand (Starwood’s flagship brand) Concept: Full service, authentic luxury

heritage, tradition and opulence Target : Industry leaders with

entrepreneurial spirit, international dignitaries, style pacesetters, contemporary epicureans, “Connoisseurs of the art of living”

Location : World’s most prestigious places (urban & resort). Best address in town.

Main competitors : Sofitel Legend, Ritz-Carlton, the Waldorf-Astoria Collection

RevPar 2010 : $186 (incl. Luxury Collection)

Brand internationalization Portfolio to double by 2014. 5k rooms in the pipeline, with focus on

Middle East and China Comm’ emphasizing on quality and

bespoke services

Positioning

Existing network 19 hotels / 3,860 rooms(average of 203 r. per hotel)

Geographical footprint

– Worldwide brand– 9 countries

Pipeline

– 5k rooms (+130% vs. exist.)– Focus on ME (2k) and China (1k)

Operating type: mainly Mngt

Strategy

Network

Starwood – Company profileDecember 2010

The Luxury Collection76 hotels / 12,399 rooms

23

Luxury “brand” (2nd largest luxury “brand” ww). Group of hotels, rather than brand

Concept: Full service, Legendary palaces and remote retreats. Unique and indigenous experiences, Non standardized hotels (label / group of hotels)

Target : Global discerning adventurers Location : World’s most prestigious places,

either primary cities or resort places Main competitors : Sofitel Legend,

Bulgari, the Waldorf-Astoria Collection, Relais & Chateaux

RevPar 2010 : $186 (incl. St. Regis)

Limited pipeline vs. other brands Development focused on China and ME Comm’ emphasizing on a unique location

and experience

13%14% 55% 17%North AmericaEMEAAPACSouth America

38%15% 48%OwnedManagedFranchised

8%7% 32% 52%North AmericaEMEAAPACSouth America

Positioning

Strategy

Existing network 76 hotels / 12,399 rooms(average of 163 r. per hotel)

Geographical footprint

– Worldwide brand with focus on EMEA

– 28 countries

Pipeline

– Limited : 2k rooms (+18%)– 80% of pipeline in emerging markets

Operating type : mix model

Network

Starwood – Company profileDecember 2010

70%30% Owned

Managed

4% 42% 49% 5%

North AmericaEMEAAPACSouth America

W38 hotels / 11,206 rooms

Existing network : 38 hotels / 11,206 rooms(average of 295 r. per hotel)

Geographical footprint

– Mainly US– 10 countries

Pipeline

– 6k rooms (+50% vs. exist.)– 95% out of the US

Operating type : mainly Mngt

24

Upper upscale brand (created in 1999) Concept: Full service, Innovative and

stylish designed hotels, Be the coolest place in town, attractive F&B outlets

Target : New Generation, Younger clients who are into music, fashion, design, etc. Trendsetters interested in the lastest, newest, hippest.

Location : Upscale neighborhood close to business districts

Main competitors : So by Sofitel, Ritz-Carlton, Intercontinental H&R, Conrad H&R, Park Hyatt

RevPar 2010 : $172

Reach 50 hotels in 2-3 years Internationalization with 95% of the

pipeline out of the US Comm’ emphasizing on the “cool” side

Network Positioning

Strategy

76% 11%

North AmericaEMEAAPACSouth America

Starwood – Company profileDecember 2010

65% 12% 19%

North AmericaEMEAAPACSouth America

58%7% 35%OwnedManagedFranchised

16% 13% 45% 25%

North AmericaEMEAAPACSouth America

Westin176 hotels / 68,488 rooms

Existing network : 176 hotels / 68,488 rooms(average of 389 r. per hotel)

Geographical footprint

– Mainly US– 37 countries

Pipeline

– 12k rooms (+18% vs. exist.)– 80% out of the US.

Operating type : mainly Mngt & Fr.

25

Upper upscale brand (Starwood’s flagship brand in the upper upscale segment)

Concept: Full service, Lifestyle hotels with many sub-branded products and services (ex. Westin Heavenly Bed, line of products for bed, bath, spa), Contemporary and zen design, balance between work hard and wellness, “Sure thing” (global standards)

Target : College-educated professionals between 35-49 years old with demanding standards

Location : Primary & sec. cities, Resorts Main competitors : Sofitel, Marriott H&R,

Renaissance, Hilton, Crowne Plaza, Hyatt RevPar 2010 : $118

Active development worldwide with 80% of the pipeline out of the US

Focus on China (4k) and India (1k) Comm’ emphasizing on the comfort,

wellness and common global standards

Network Positioning

Strategy

Starwood – Company profileDecember 2010

11% 59% 28%North AmericaEMEAAPACSouth America

85% 15% Managed

Franchised

42% 58%North AmericaEMEAAPACSouth America

Le Méridien100 hotels / 26,678 rooms

Existing network : 100 hotels / 26,678 rooms(average of 267 r. per hotel)

Geographical footprint

– Worldwide brand , focus on EMEA– 44 countries

Pipeline

– 3.5k rooms (+13% vs. exist.)– 1/3 of the projects in China (1.2k r.)

Operating type : Asset Light

26

Upper upscale brand (Acquired in 2005 to complete Westin’s portfolio in Europe)

Concept: Full service, Westin’s sister brand in Europe, Focus on European and French heritage on food, culture and design, Timeless chic design, Chic, Cultured, Discovery

Target : Upscale travelers, the « creative guest » (engineers, journalists, scientists, architects and entertainment agents).

Location : Primary & sec cities, Resorts Main competitors : Pullman, Marriott H&R,

Renaissance H&R, Crowne Plaza, Hilton RevPar 2010 : $126

Major strategic axis since acquisition (2005): Portfolio “Cleaning up”

- Disposal of 20% of the hotels - 35% of hotels under renovation

Limited pipeline: Europe and Asia only Comm’ emphasizing on a rejuvenated

brand, on difference (European heritage)

Network Positioning

Strategy

Starwood – Company profileDecember 2010

7%49% 25% 19%North AmericaEMEAAPACSouth America

51%6% 42%OwnedManagedFranchised

9%12% 77%North AmericaEMEAAPACSouth America

Sheraton403 hotels / 140,382 rooms

Existing network : 403 hotels / 140,382 rooms(average of 348 r. per hotel)

Geographical footprint

– Worldwide brand– 69 countries

Pipeline

– 22k rooms (+16% vs. exist.)– Strong focus on China (14k).

Operating type : Asset Light

27

Upscale brand: Starwood largest and most important brand, from both a footprint (47%) and revenue standpoint. Heterogeneous segment positioning by geography: Upscale out of the US vs. lower upscale in the US

Concept: Full service, Approachable luxury Target : Both business and leisure

travelers (Family) Location : Primary & sec. cities, Resorts Main competitors : Pullman, Marriott H&R,

Renaissance H&R, Crowne Plaza, Hilton, Hyatt Regency

RevPar 2010 : $94

3-year revitalizing brand program of $6bn: renovation of 90 hotels in progress, removal of 35 off brand hotels

Largest pipeline, with focus on APAC Comm’ emphasizing on the accessibility

and conviviality / sharing

Network Positioning

Strategy

Starwood – Company profileDecember 2010

Existing network : 158 hotels / 27,391 rooms(average of 173 r. per hotel)

Geographical footprint

– Mainly US

Pipeline

– 10k rooms (+37% vs. exist.)– Focus on the US (33%), China (32%)

Operating type : mainly Franchise

24% 75%OwnedManagedFranchised

38% 15% 47%

North AmericaEMEAAPACSouth America

Four Points by Sheraton (1/2)158 hotels / 27,391 rooms

28

Upper-midscale brand Concept: Limited service, Derived from

Sheraton, Most global mid-market brand, Honest uncomplicated comfort

Target : Business travelers and small conventions

Location : Mainly urban locations near airports and business centers

Main competitors : Mercure, Novotel, Courtyard, Hyatt Place

RevPar 2010 : $69

Repositioning from mid to upper-midscale

- Over $1bn invested in renovations, conversions and new hotels

- Affiliation to Sheraton Second largest pipeline Comm’ emphasizing on business target

Network Positioning

Strategy

67% 14%

North AmericaEMEAAPACSouth America

Starwood – Company profileDecember 2010

Ownership

Four Points by Sheraton (2/2) Affiliation brand strategy: case study

Four Points by Sheraton was created as Sheraton’ sister midscale brand. Operated as a stand-alone brand only for 2 years, being then rebranded with Sheraton affiliation A $1bn rejuvenation plan between 2004 and 2010 resulted in a 70% turnover of the portfolio and in a repositioning on

the upper-midscale segment.

29

Upscale

Midscale

1995 1998 2000 2010

Sheraton H&R Starwood

• Creation of Four Points by Sheraton Hotels

• Brand created to replace Sheraton Inns brand

• Acquisition by Starwood of ITT Sheraton, Four Points parent company

• Rebranding : brand operated as Four Points

• Relaunch of Four Points by Sheraton

• Launch of a $1 b rejuvenation plan

• Repositioning of the brand: from midscale to upper midscale

2004

Affiliation to support brand performance & enable repositioning

92%North AmericaEMEAAPAC

88%OwnedManagedFranchised

57% 7% 32% 4%

North AmericaEMEAAPACSouth America

Aloft a vision of W hotels45 hotels / 6,777 rooms

Existing network : 45 hotels / 6,777 rooms (average of 151 r. per hotel)

Geographical footprint

– Focus on US

Pipeline

– 6.5k rooms (+100%)– Start of internationalization process

Operating type : mainly Franchise

30

Midscale brand (created in 2005) Concept: Limited service, Concept derived

from W., More casual, social and affordable than W hotels, Urban-style business / boutique hotel brand.

Target : New generation, Young and fashion-conscious oriented

Location : Urban areas, unexpected places

Main competitors : Indigo Hotel, SuiteNovotel

RevPar 2009 : $86

Network to be doubled by 2014 Initialization of international development

with focus on China and India Affiliation to W hotels Comm’ emphasizing on the urban style

Network Positioning

Strategy

Starwood – Company profileDecember 2010

100% North America

16% 84% Owned

Franchised

87% 13%

North AmericaEMEAAPACSouth America

Element by Westin9 hotels / 1,428 rooms

Existing network : 9 hotels / 1,428 rooms in operation = 159 rooms per hotel on average

Geographical footprint

– US only

Pipeline

– 2k rooms (+140% vs. exist.)– 11 hotels in the US, 1 in Abu Dhabi

Operating type : Franchise mainly

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Midscale brand (created in 2008) Concept: Extended Stay, Smart and

renewing brand with an emphasis on nature, Built eco-friendly

Target : New Generation, Green-minded travelers, Extended stay (Leisure)

Location : Urban areas Main competitors : Adagio, TownePlace

Suites, Summerfield Suites

Aggressive launch of the brand confirmed Affiliation to Westin brand Still focused on the US, but with first

move of internationalization. Comm’ emphasizing on the green attitude

Network Positioning

Strategy

Starwood – Company profileDecember 2010

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13. Executive Officers

Frits Van PaaschenCEO

Mathew E. AvrilPresident Hotel Group

Jeffrey M. CavaExecutive Vice President and Chief Human Resources Officer

Vasant M. PrabhuExecutive Vice President andChief Financial Officer

Simon M. TurnerPresident Hotel Group

Philip P. McAveetyExecutive Vice President andChief Brand Officer

Keneth S. SiegelChief Administrative Officer, General Counsel and Secretary