STARWOOD IN GREATER CHINA

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1 STARWOOD IN GREATER CHINA QIAN JIN PRESIDENT GREATER CHINA 48 W HONG KONG

2 GREATER CHINA REPRESENTS AN UNMATCHED GROWTH OPPORTUNITY CHINA US Population 1.3B 0.3B Metro Areas with Population>1M International arrivals (2011) 57M 62M Outbound Trips (2011) 70M 58M Outbound Trips (2015E) 100M (+43%) 64M (+10%) Domestic Trips (2011) 2.6B 2.0B Sources: imf.org., data.worldbank.org, cia.gov, international trade administration, US Department of Commerce 49

3 STARWOOD A LARGE BALANCED FOOTPRINT ACROSS GREATER CHINA» 203 properties (operating + pipeline) with more than 72,000 rooms» Strong presence in key gateway cities and resorts» First-mover in secondary and emerging cities WEST & CENTRAL AREA: 28 HOTELS - 14 OPERATING, 14 PIPELINE SOUTH AREA: 49 HOTELS - 27 OPERATING, 22 PIPELINE NORTH AREA: 47 HOTELS - 22 OPERATING, 25 PIPELINE EAST AREA: 50 HOTELS - 27 OPERATING, 23 PIPELINE TAIWAN: 9 HOTELS 6 OPERATING, 3 PIPELINE HONG KONG/ MACAO: 7 HOTELS 4 OPERATING, 3 PIPELINE 103 Operating properties 100 Pipeline (Executed) Source: Starwood internal data as of June

4 THE CLEAR LEADER IN GREATER CHINA GREATER CHINA OPERATING AND PIPELINE ROOMS (000 s) Starwood Marriott Hilton Hyatt Pipeline - In Construction Operating Source: Smith Travel Research (STR) of April

5 OUR PIPELINE IN GREATER CHINA IS DELIVERING Since 2010, Starwood has opened more hotel rooms in Greater China than Marriott, Hilton and Hyatt COMBINED 20 GREATER CHINA NEW OPENINGS (by Rooms, 000s) Starwood Hilton Marriott Hyatt 1 Source: Smith Travel Research (STR): January April 2012, based on hotel open date 52

6 OUR GREATER CHINA ADVANTAGE» First mover advantage» Strong local brand recognition» Distinctive local programs» Industry-leading pipeline» Deep local leadership team» Best-in-class talent building programs» Award winning hotel portfolio SHERATON DAIMEISHA RESORT SHENZHEN W TAIPEI, TAIWAN 53

7 Guangzhou CCC Grand Opening STARWOOD S 1ST MOVER ADVANTAGE SETS IT APART 1985: 1st int l chain to open a branded hotel in mainland China 2012: 200 properties (operating, pipeline) Opening of Sheraton Hong Kong Opening of 25 th hotel in China - Four Points by Sheraton Shenzhen Opening of 50 th hotel in China - Sheraton Jinan Hotel, Shandong Double Happiness Celebration 200 properties (operating, pipeline) st international chain to open a branded hotel in China - The Great Wall Sheraton Hotel Beijing Signed 100 th hotel in Greater China Sheraton Beijing Dongcheng Hotel Opening of Largest Customer Contact Center in Guangzhou 1 st int l hotel chain to launch Chinese Double Byte Booking Engine 54

8 STRONG LOCAL BRAND RECOGNITION International Hotel Group of the Year-STARWOOD HOTELS & RESORTS from China Hotel Industry Awards BEST HOTEL GROUP-STARWOOD HOTELS & RESORTS from Travel & Leisure 2011 BEST INTERNATIONAL HOTEL GROUP-STARWOOD HOTELS & RESORTS from Travel Weekly China BEST HOSPITALITY MANAGEMENT-STARWOOD HOTELS & RESORTS from World Travel Awards 2011 THE BEST BUSINESS HOTEL BRAND-SHERATON HOTELS & RESORTS from Sohu China Service Award 2011 THE BEST LUXURY HOTEL BRAND-WESTIN HOTELS & RESORTS from Sohu China Service Award 2011 BEST MID RANGE HOTEL BRAND IN GREATER CHINA-FOUR POINTS BY SHERATON from TTG China Travel Award

9 STRONG LOCAL BRAND RECOGNITION LOYAL AND LOCAL GUESTS» ~60% of guests in Starwood hotels in China are domestic travelers» More than 75% of guests in secondary and emerging cities in China are domestic travelers YTD Other 37% China 24% Pacific 2% Japan 4% Other 15% Pacific 1% Japan 8% Europe 11% N. America 19% Europe 9% N. America 10% China 60% Source: Starwood internal data 56

10 STRONG LOCAL BRAND RECOGNITION CAPTURING THE OUTBOUND TRAVELER» Leveraging our strong brand recognition in China to capture the Chinese outbound market» More than 50% growth in outbound revenue from Chinese SPG guests in the past two years STARWOOD PERSONALIZED TRAVEL Designed to cater to the unique needs of our Chinese guests staying at our hotels globally» In-Hotel Chinese specialist» Chinese language collateral» Convenience of home Tea kettle Instant noodles Slippers Amenities such as razor, toothbrush and comb Chinese-friendly menu - congee, noodles, rice 57

11 SPG 俱乐部 GLOBAL PROGRAM, LOCAL APPLICATION PARTNERSHIPS DIGITAL INNOVATION HAINAN ISLAND Global and Divisional Partners >20,000 Fans on Weibo SPG Shuttle Buses Brand Zone on Baidu Destination Website Local Partners Jiepang Check-In Promotion SPG Kids Eat Free 58

12 DEEP AND GROWING SPG PENETRATION IN CHINA» SPG drives more than 55% of room nights in Greater China» More than 60% growth in SPG active members in China in 2011» Over 8% of SPG members reside in Greater China the largest pool of SPG members outside of the U.S. 59

13 1ST INTERNATIONAL HOTEL COMPANY TO LAUNCH END-TO-END MANDARIN BOOKING ENGINE» Double byte booking engine launched in March 2011» Innovative global marketing campaign leveraging social media 60

14 AUTHENTIC F&B PROGRAMS»Signature breakfast dishes by brand and region»authentic regional dishes for our guests»chinese Restaurant Operational Manual 61

15 LARGEST HOTEL CUSTOMER CONTACT CENTER IN CHINA The 300 associates in the Guangzhou Customer Contact Center provide customer service for Starwood s Mandarin-speaking guests both in China and around the world» Opening of the largest international hospitality Contact Center in China» Expanded to 180+ associates» +38% increase in call volume in 2011 (~1M calls)» More than 300 associates» First Contact Centre in China to receive LEED certification 62

16 OUR INDUSTRY-LEADING FOOTPRINT EXTENDS WELL BEYOND THE COASTAL MEGA-CITIES OPERATING 50 SHERATON Daqing 15 FOUR POINTS 16 WESTIN 5 ST. REGIS 8 LE MERIDIEN 2 W Urumqi Lhasa Jinzhou Hohhot Beijing Tianjin Jinan Qingdao Xi an Tai an Haiyang Lianyungang Zhengzhou Jiangyin Wuxi Taicang Jiuzhaigou Wuhan Hefei Shanghai Zhoushan Chongqing Hangzhou Ningbo Qiandao Lake Fuzhou 5 ALOFT 2 LUXURY COLLECTION Guangzhou Nanhai Shunde Zhongshan Huizhou Dongguan Shenzhen Macau HongKong Taipei Chung Ho Hsinchu Source: Starwood internal data as of June 2012 Haikou ShimeiBay Sanya 63

17 OUR INDUSTRY-LEADING PIPELINE REFLECTS OUR FOCUS ON THE GROWING 2ND AND 3RD TIER CITIES PIPELINE (EXECUTED) 39 SHERATON Ulaanbaatar 20 FOUR POINTS 11 WESTIN 6 ST. REGIS 6 LE MERIDIEN 5 W 6 ALOFT 7 LUXURY COLLECTION Source: Starwood internal data as of June 2012 Diqing Xishuangbanna Lijiang Chengdu Emei Xi an Chongqing Bijie Erdos Beijing Wuhan Hefei Huzhou Huangshan Hangzhou Heshan Guangzhou Nanning Shantou Zhuhai Huizhou Zhanjiang Macau Shenzhen Haikou Haitang Bay Qingsui Bay Tufu Bay Dalian Tangshan Tianjin Yantai Taiyuan Weifang Qingdao Zhengzhou Kaifeng Luohe Yancheng Changsha Nanchang Fuzhou Xiamen Shenyang Nanjing Shanghai Nine Dragon Hill Ningbo Yuhuan Wenzhou Changchun Suzhou Yilan Changbaishan Penghu 64

18 CASE STUDY GROWTH STRATEGY Sheraton as the launch brand to penetrate into emerging cities in China Changsha» Entered Changsha in 2007» Added St. Regis, W to pipeline» Today: 1 Operating + 2 Pipeline Tianjin Tianjin» Entered Tianjin with Sheraton in 1987» Opened Westin, Luxury Collection, St. Regis and another Sheraton in » Added Le Meridien to pipeline» Today: 5 Operating + 1 Pipeline Hainan Island» Entered Hainan with Sheraton in 2003» Opened Le Meridien, St. Regis, Four Points and 3 more Sheratons since 2005» Added Luxury Collection, more Westin, Sheraton and Four Points to pipeline» Today: 7 Operating + 7 Pipeline Changsha Hainan Island Xiamen Xiamen» Entered Xiamen in 2006» Opened Le Meridien and Westin in 2010, 2012» Added Luxury Collection to pipeline» Today: 3 Operating + 1 Pipeline 65

19 REGIONAL EXCOM REGIONAL LEADERSHIP SENIOR LEADERSHIP GREATER CHINA: OUR LEADERSHIP TEAM Strong, local team with average 16 years of service with Starwood Stephen Ho President, Asia Pacific 31 Years Miguel Ko Non-Executive Chairman 25 Years of Service (before retirement in August 2012) Qian Jin President, Greater China 26 Years Alice Wong SVP Finance 15 Years Liu Wei Li VP Design &TS 6 Years Harris Chan VP Operations, China 34 Years Charlie Dang AMD North China 19 Years Stephen Ford AMD South China 12 Years Daniel Aylmer AMD East China 16 Years Duke Nam AMD Central/West China 15 Years Charles Woo AMD HK & Macau 16 Years Josef Dolp MD, Sheraton Macau 16 Years Dean Lee VP Finance 2 Years Michael Pross VP HR 26 Years Wendy Huang VP S&M 7 Years Robert Zhang VP A&D 22 Years Christopher Zhang VP A&D Mid-Scale 2 Years Henry Xu Legal Counsel 3 Years 66

20 National Recruitment Day- Video BUILDING BEST-IN-CLASS TALENT FOR THE FUTURE Multi-pronged approach to building talent» Starwood Cares (employee culture program)» Starwood Careers (internal talent development, Starwood retention program)» Branding & Engagement (Social media, branded recruitment, annual National Mass Recruitment day) 67

21 National Recruitment Day- Video ATTRACTING THE BEST TALENT THROUGH CREATIVE CHANNELS 2012 GREATER CHINA NATIONAL RECRUITMENT DAY 68

22 GREATER CHINA: OUR PORTFOLIO INNOVATIVE DESIGN SHERATON DAMEISHA RESORT, SHENZHEN, CHINA 386 ROOMS,

23 GREATER CHINA: OUR PORTFOLIO INNOVATIVE DESIGN LE ROYAL MERIDIEN SHANGHAI, CHINA 761 ROOMS,

24 GREATER CHINA OUR PORTFOLIO INNOVATIVE DESIGN SHERATON HUZHOU HOT SPRING RESORT, CHINA 352 ROOMS, OPENING IN 2012 THE ST. REGIS TIANJIN, CHINA 274 ROOMS,

25 GREATER CHINA OUR PORTFOLIO THE TALLEST ST. REGIS GLOBALLY THE ST. REGIS SHENZHEN, CHINA 297 ROOMS,

26 GREATER CHINA OUR PORTFOLIO THE HIGHEST INTERNATIONAL HOTEL GLOBALLY THE ST. REGIS LHASA, CHINA 162 ROOMS,

27 GREATER CHINA: OUR PORTFOLIO THE BIGGEST SHERATON GLOBALLY SHERATON MACAO 3,863 ROOMS, OPENING IN 3Q

28 GREATER CHINA: OUR PORTFOLIO 1ST DUAL-BRANDED SKI RESORT COMPLEX SHERATON CHANGBAISHAN RESORT, CHINA, 301 ROOMS THE WESTIN CHANGBAISHAN RESORT, CHINA, 250 ROOMS OPENING IN 3Q

29 OUR MISSION IN GREATER CHINA: TO BE THE LARGEST AND BEST CHINESE HOTEL COMPANY 76