A NEW LUXURY for a NEW GENERATION PAUL JAMES Global Brand Leader St
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A NEW LUXURY FOR A NEW GENERATION PAUL JAMES Global Brand Leader St. Regis, The Luxury Collection, W Hotels Worldwide 16th January 2013 Luxury FirstLook: Strategy 2013 A©2012 Luxury STARWOOD HOTELS Daily & RESORTS WORLDWIDE,event INC. | Proprietary & Confidential ©2012 STARWOOD HOTELS & RESORTS WORLDWIDE, INC. | Proprietary & Confidential 2 LUXURY IS A ~$1.3T INDUSTRY th Similarly sized to Australia’s GDP, the world’s 13 largest economy GLOBAL MARKET FOR LUXURY GOODS AND SERVICES TRADITIONAL LUXURY GOOD SECTORS OTHER LUXURY SECTORS 400 350 Largest spend category is 300 330 355 250 “experience” based 200 150 100 130 130 50 Luxury Spend ($B) Luxury Spend 65 65 65 0 40 55 25 3 Source: BCG Consulting Insights “Look At the Trendlines NOT the Headlines” William J. Clinton Never Assume Taylor, Harrison & Kraus – Wealth in America (2005–07) LUXURY SELF VALUE ASSUMPTION RECORDED Are Married 53% 83% Want Others to recognize their Wealth 55% 11% Worry about their Children’s Work Ethic 95% 50% Worry their Friends only like them for their Money 73% 12% Have compromised their Values to Make Money 65% 9% The Rich ARE D ifferent from You & Me And Different from Any Wealthy Generation Before Bigger, Stronger, Faster, Smarter The Industrial Revolution 2.0 The New Elite They Earn More & Spend More & Travel More & Tell Better Jokes The Road to D a v o s And the Start of the New Grand Tour Welcome to GEN L u X u r Y The New Global Elite’s Most Powerful Tribe Getting to Know You The Dynamics of GEN LuXurY MONEY Global Brands – All buy the same stuff Global Investments – All invest in the same products MONEY: Global Money – Have no Currency Patriotism Shared Objects & SELF Investments Self Made SELF: BUSINESS: Modest Backgrounds Shared The World is Hard Working Values & Flat Middle Class Values Experiences Entrepreneurial Global Travellers Relationships GEN International Residences LuXurY BUSINESS Every Company is Multinational Every Company has a Global Market International Board Membership G E N L u X u r Y Tribes & Tribulations WEALTH Neighbours Directors 18% SEGMENTATION 30% Wrestlers 24% Mavericks 13% Patrons 15% The Directors Cut (& Sliced) 80% Male, 80% Married The Directors (US) / Corporate Aristocracy (Global) 80% Owners/CEOs 73% Laissez-Faire Politically Minimum 3 Cars Minimum 2 Homes Passions: Wine, Cigars, Cars, Travel, Books/Ideas S o W h a t ? Or Why Did this matter to Starwood? USA Wealthy Population (650k Households) 30% Are Directors Directors Travel More (6 x 4-day Trips per annum) ASSUME 50% of trips generate Luxury Hotel Room-nights US-Based Directors ALONE will generate 2.4 Million room-nights in 2012 Equates to 89% Occupancy at St. Regis Headline: The Solipsistic 1% Trendline: Cash Rich/Time Poor Individuals Look to Quality & Family “Seeing more of the world” remains a priority among Affluent Americans. 2013 Goals: 1. “Spend more time with friends & family” 2. “Quality in Life” 3. “Traveling More” 2012 Survey of Affluence & Wealth in America Everything we do is Driven by You - th STARWOOD LUXURY GROWTH St. Regis and W Hotels have more than doubled their portfolios since 2007, while Luxury Collection grew by 50% ST. REGIS LUXURY COLLECTION W HOTELS 100 100 92 100 90 90 7 90 80 80 7 80 70 70 70 60 60 23 60 57 # of Hotels # of Hotels # of Hotels 50 40 50 50 13 40 9 40 40 2 30 3 30 56 30 23 20 15 20 20 10 10 10 19 0 13 0 0 Note: Pipeline is executed-only Source: ABCD as of March 31, 2012 17 ST. REGIS THE ST. REGIS FLORENCE, FLORENCE, ITALY 18 FOOTPRINT & FUTURE St. Regis Hotels & Resorts London Beijing San Francisco Deer Valley New York Florence (2011) Tianjin (2011) Changsa (2013) Aspen Rome Osaka Washington, D.C. Mallorca Amman Chengdu (2014) Atlanta Lhasa Monarch Beach Houston Cairo (2014)(2015) Doha (2012) Bal Harbour (2012) Lijiang Zhuhai (2015) Riviera Noida Bahia Beach, Puerto Rico Saadiyat Island (2011) (2014) Shenzhen (2011) Princeville, Punta Maya (2016) Sanya Yalong Bay (2011) Bangkok HI Mita (2014) Abu Dhabi Mexico (2011) Kuala Lumpur (2014) (2013) Singapore City Bora Bora Bali Mauritius (2012) 2009 (18 Open) 2010 Openings (+3 = 21 Open) 2011 Openings (+6 = 27 Open) 2012 Openings (+3 = 30 Open) Future Openings (+10 + Open) 19 For Internal Use Only. ©2012 Starwood Hotels & Resorts Worldwide, Inc. All Rights Reserved. T h e G r a n d Tour Debuts The St. Regis Shenzhen The St. Regis Saadiyat Island The St. Regis Bal Harbour Resort Dec. 2011 Resort, Abu Dhabi Jan. 2012 Dec. 2011 Total 297 Rooms: Total 380 Rooms: Total 243 Rooms: 257 Rooms, 40 Suites 317 Rooms, 63 Suites 173 Rooms, 70 Suites Hotel #26 Hotel #27 Hotel #28 20 For Internal Use Only. ©2012 Starwood Hotels & Resorts Worldwide, Inc. All Rights Reserved. The Grand Tour D e b u t s The St. Regis Doha The St. Regis Mauritius Resort The St. Regis Abu Dhabi April 2012 November 2012 April 2013 Total 336 Rooms: Total 172 Rooms: Total 283 Rooms: 266 Rooms, 70 Suites 122 Rooms, 49 Suites, 228Rooms, 55 Suites 1four bedroom Villa Jazz at Lincoln Center Doha Hotel #31 21 Hotel #29 Hotel #30 For Internal Use Only. ©2012 Starwood Hotels & Resorts Worldwide, Inc. All Rights Reserved. Greenwich London New York Beijing Bridgehampton Abu Dhabi Bangkok Singapore Sao Paulo Buenos Aires 22 For Internal Use Only. ©2012 Starwood Hotels & Resorts Worldwide, Inc. All Rights Reserved. Singapore Pink Polo Abu Dhabi Pink Polo The St. Regis 1904 Polo Cup 23 Veuve Cliquot Polo Classic The St. ForRegis Internal Use International Only. ©2012 Starwood Hotels Cup & Resorts Worldwide, Inc. All Rights Reserved. Sentebale Cup THE LUXURY COLLECTION BLUE PALACE, A LUXURY COLLECTION RESORT & SPA, ELOUNDA, GREECE 24 The Restoration of Four European Icons ©2009 Starwood Hotels & Resorts Worldwide, Inc. All Rights Reserved. CONFIDENTIAL & PROPRIETARY May not be reproduced or distributed without written permission of Starwood Hotels & Resorts Worldwide, Inc. The Luxury Collection Expands its Global Footprint, Adding Key Destinations in Asia Pacific KERATON AT THE PLAZA, THE ROYAL BEGONIA, A LUXURY COLLECTION HOTEL, A LUXURY COLLECTION RESORT, JAKARTA, INDONESIA SANYA, CHINA ©2009 Starwood Hotels & Resorts Worldwide, Inc. All Rights Reserved. CONFIDENTIAL & PROPRIETARY May not be reproduced or distributed without written permission of Starwood Hotels & Resorts Worldwide, Inc. ITC GRAND CHOLA, TWELVE AT HENGSHAN, VANA BELLE, A LUXURY COLLECTION HOTEL, A LUXURY COLLECTION HOTEL, A LUXURY COLLECTION RESORT, CHENNAI, INDIA SHANGHAI, CHINA KOH SAMUI, THAILAND ©2009 Starwood Hotels & Resorts Worldwide, Inc. All Rights Reserved. CONFIDENTIAL & PROPRIETARY May not be reproduced or distributed without written permission of Starwood Hotels & Resorts Worldwide, Inc. • All stories on LC Global Explorers Site • Each video is tagged and can be shared on social media • US Stories Include: . Waris Ahluwalia – Designer . Jay McInerney – Author . Chanel Iman – Model . Geoffrey Zakarian – Chef . Cynthia Rowley – Designer . Dana Cowin – Editor ©2009 Starwood Hotels & Resorts Worldwide, Inc. All Rights Reserved. CONFIDENTIAL & PROPRIETARY May not be reproduced or distributed without written permission of Starwood Hotels & Resorts Worldwide, Inc. ©2009 Starwood Hotels & Resorts Worldwide, Inc. All Rights Reserved. CONFIDENTIAL & PROPRIETARY May not be reproduced or distributed without written permission of Starwood Hotels & Resorts Worldwide, Inc. W HOTELS WORLDWIDE ©2009 Starwood Hotels & Resorts Worldwide, Inc. All Rights Reserved. CONFIDENTIAL & PROPRIETARY May not be reproduced or distributed without written permission of Starwood Hotels & Resorts Worldwide, Inc. W BANGKOK OPENED: DECEMBER, 2012 ©2011 Starwood Hotels & Resorts Worldwide, inc. All rights reserved. Confidential & proprietary – may not be reproduced or distributed without written permission of Starwood Hotels & Resorts Worldwide, Inc. W GUANGZHOU OPENING: 2013 - Q1 ©2011 Starwood Hotels & Resorts Worldwide, inc. All rights reserved. Confidential & proprietary – may not be reproduced or distributed without written permission of Starwood Hotels & Resorts Worldwide, Inc. W VERBIER OPENING: 2013 - Q4 ©2009 Starwood Hotels & Resorts Worldwide, Inc. All Rights Reserved. CONFIDENTIAL & PROPRIETARY May not be reproduced or distributed without written permission of Starwood Hotels & Resorts Worldwide, Inc. PASSION POINT ACTIVATIONS ©2009 Starwood Hotels & Resorts Worldwide, Inc. All Rights Reserved. CONFIDENTIAL & PROPRIETARY May not be reproduced or distributed without written permission of Starwood Hotels & Resorts Worldwide, Inc. W HOTELS WORLDWIDE PRESENTS 2012 W HOTELS & BURN STUDIOS DJ LAB + GLOBAL TOUR ©2011 Starwood Hotels & Resorts Worldwide, inc. All rights reserved. Confidential & proprietary – may not be reproduced or distributed without written permission of Starwood Hotels & Resorts Worldwide, Inc. TOUR DATES SEP. 5 W BANGKOK GIO OCT. 12 W HONG KONG POSSO OCT. 13 + 14 ELLE FASHION WEEK POSSO OCT. 18 - 20 W SINGAPORE ALL DJS OCT. 21 W BALI POSSO OCT. 23 + 24 W SEOUL POSSO OCT. 26 W TAIPEI GIO NOV. 29 - DEC. 1 W SANTIAGO VITOR NOV. 30 W ST. PETERSBURG GIO DEC. 1 W HONG KONG ALINE DEC. 21 W TAIPEI DOGUS DEC. 31 W HONG KONG GIO DEC. 31 W BALI LONDON BEATS DEC. 5 W BARCELONA ALINE TBD W PARIS - OPERA TBD TBD W LONDON TBD ©2009 Starwood Hotels & Resorts Worldwide, Inc. All Rights Reserved. CONFIDENTIAL & PROPRIETARY May not be reproduced or distributed without written permission of Starwood Hotels & Resorts Worldwide, Inc. Thank You [email protected] +1 212 380 4025 ©2009 Starwood Hotels & Resorts Worldwide, Inc. All Rights Reserved. CONFIDENTIAL & PROPRIETARY May not be reproduced or distributed without written permission of Starwood Hotels & Resorts Worldwide, Inc. .