Starwood Hotel 2007

STARWOOD HOTELS & RESORTS WORLDWIDE

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TABLE OF CONTENT 1.0 INTRODUCTION

2

1.1 Company Background

2

1.2 Mission

2

1.3 VISION

2

2.0 STRATEGIES

3

3.0 EXTERNAL FACTOR 3.1 PORTER 5 FORCES

4

3.2 COMPETITIVE PROFILE MATRIX (CPM)

5

3.3 EXTERNAL SUCCESS FACTOR

6

3.4 EXTERNAL FACTOR EVALUATION (EFE) MATRIX

7

4.0 INTERNAL ANALYSISI

12

4.1 FINANCIAL RATIO ANALYSIS

12

4.2 INTERNAL SUCCES FACTORS

18

4.3 INTERNAL FACTOR EVALUATION MATRIX (IFE)

19

5.0 MAJOR ISSUE

22

6.0 STRATEGIC POSITION AND ACTION EVALUATION (SPACE) MATRIX 23 7.0 THE SWOT MATRIX

27

8.0 RECOMMENDATION

30

9.0 CONCLUSION

32

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1.0 INTRODUCTION

1.1 Company Background Starwood Hotels is one of the leading hotel and leisure companies in the world with more than 1,000 hotels reaching across nearly 100 countries through nine world-class brands, backed by the dedication of 145,000 employees. Starwood is a fully integrated owner, operator and franchisor of hotels, resorts and residences with the following internationally celebrated brands: St. Regis, The Luxury Collection, W Hotels, Westin, Le Meridien, Sheraton, Four Points by Sheraton, and the recently launched Aloft and Element. Starwood Hotels also owns Starwood Vacation Ownership, Inc., one of the premier developers and operators of high quality interval ownership resorts. As one of the largest operators of upper upscale and luxury hotels, our global portfolio is unmatched. Starwood remains on track to increase its worldwide footprint by 20% over the next five years through smart, carefully targeted growth that will expand our presence in the upper upscale and luxury hotel categories, as well as in the vital limited service segment. Our international portfolio of more than 1,000 hotels is one of the strongest and most coveted in the industry, with 60% of our properties less than three years old or newly renovated. 1.2 Mission “A Global Branded Life Style Hospitality company that delivers branded consumer product and services in ways that are different, better and special.” 1.3 Vision We succeed only when we meet and exceed the expectation of our customers, owners, and shareholder. We have are passion for excellent and will deliver the highest standards of integrity and fairness. We celebrate the diversity of people, ideas and cultures. We honor the dignity and value of individual king as are team. We improve the communities in which we work. We encourage innovation, accept accountability, and embrace change. We seek knowledge and growth through learning. We share are sense of urgency, nimbleness, and endeavor to have fun too. 2

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2.0 STRATEGIES

Frits van Paasschen, President and Chief Executive Officer said, “Starwood is the global leader in operating lifestyle hospitality brands, and we have been hard at work accelerating our growth prospects. Starwood’s senior leadership team has enjoyed great stability over the past three years and has never been better aligned to execute on our growth strategy.” “With over half of our hotels located outside of the United States, we are well positioned to take advantage of the robust RevPAR growth occurring in emerging markets and the strong unit growth that should fuel our fee business for years to come. With most of our owned hotels in the developed world, we expect to drive strong rate growth in this highly favorable, low supply environment. We have been outperforming our competitors in 2010 and our hotel operating initiatives should help us continue to deliver market-leading returns for our stakeholders as these global initiatives fuel the top-line and push margins back towards prior peaks. We also remain committed to transitioning to a business that is 80% fee driven as we continue to monetize our high value, owned hotel portfolio and complete our transformation from owning hotels to building great relationships with guests and customers.” The Company’s three year financial scenario assumes a normal cyclical recovery with annual worldwide RevPAR increases of 7-9% through 2013, and would result in: • Annual EBITDA growth of 14-18% • Annual EPS growth of 35-42% • Excess Cash Flow of $1.7 billion to $2.2 billion (not inclusive of cash proceeds from any asset Sales) over this time period

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3.0 EXTERNAL FACTOR

Following are the Major indentified external opportunities and threats Starwood Hotels and Resorts Worldwide. Identifying these factors help the company to evaluate the its current position in the competitive market and convince the management to analyze the current market in order to set the strategies and goals in which business faces, the external factors evaluation.

3.1 PORTER 5 FORCES The following Porter 5 Forces Model in Continental Airlines is as following:No

Porter 5 Forces Components

High/Low

Threat of New Entrants : 1

The Entry Barriers in the airline

Discussion

Profit

High Capital for entering the High

industry.

international hotel service

4

market. Many suppliers support the large

2

Bargaining power of suppliers

Medium

number of established Hotel industry, medium Switching

3

costs in changing supplier 3

Bargaining Power of Customers

High

Freedom, Technology and customer loyalty.

5

Many choices of hotel 4

Threat of Substitute Products

High

will be substitute with small or budget hotel, motel, chalet and

4

room provided.

5

Competitive Rivalry within an Industry

* Notes: Profit Figure

High competition in hotel High

industry by many big capital company.

5- Strongest & 1-Lowest 4

4

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3.2 COMPETITIVE PROFILE MATRIX (CPM)

Critical

Weight Starwood

Success

Hotels

Hilton Hotels Hyatt

Marriott

Corporation

Corporation

International

Factor Rating

Score

Rating

Score

Rating Score

Rating Score

Market Share

0.16

3

0.48

4

0.64

1

0.16

2

0.32

Global

0.18

4

0.72

3

0.54

1

0.18

2

0.36

0.13

3

0.39

4

0.52

1

0.13

2

0.26

0.16

4

0.64

3

0.48

1

0.32

2

0.32

Advertising

0.17

3

0.51

4

0.68

2

0.34

1

0.17

Price

0.20

2

0.40

1

0.20

4

0.80

3

0.60

Expansion Customer Loyalty Product Quality

Competition Total

1.00

3.14

3.06

1.93

2.03

The competitive profile matrix for Starwood Hotel categorizes the company competitors by Hilton Hotels Corporation, Hyatt Corporation, and Marriott International. Companies are then evaluated on the basis of significant success factors of the Starwood industry and the success factors are weighed from (0.0, not importance to 1.0, very important) and the rating pass on the strengths and weaknesses by four being the major strengths, to one for major weaknesses.

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3.3 EXTERNAL SUCCESS FACTOR OPPORTUNITIES

i.

Hotel industry were projected to increase to $29.7 billion in 2007.

ii.

Asia Pacific market had grown by 4.8% and European segmentation continue dominant play in this industry.

iii.

Diverse target market.

iv.

Signed agreement to build nearly 20 large hotel in Asia.

THREATS

i.

Potential downturns in travel by terrorist attack (“11 sept”).

ii.

Competitive pressure by changing the new technology.

iii.

Room Price competition.

iv.

Decreasing the revenue in United States and Italy in 2006.

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3.4 EXTERNAL FACTOR EVALUATION (EFE) MATRIX

External Factor Evaluation (EFE) Matrix Bill. Key External Factors

Weight

Rating

Weighted Score

O

1

Hotel industry were projected to

0.17

3

0.51

0.15

4

0.60

0.15

3

0.45

0.10

3

0.30

increase to $29.7 billion in 2007. Asia Pacific market had grown by O

2

4.8% and European segmentation continue dominant play in this industry.

O

3

O

4

T

5

T

6

T

7

T

8

Diverse target market, Signed agreement to build nearly 20 large hotel in Asia. Total

0.57

Potential downturns in travel

0.12

2

0.24

0.10

2

0.20

0.10

4

0.40

0.11

3

0.33

Competitive pressure by changing the new technology Room Price competition Decreasing the revenue in United States and Italy in 2006. Total

7

1.86

0.43

1.17

1.0

3.03

7

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After evaluating and analyzing the weights of strengths and weaknesses of the company, the total weighted score is 3.03 which slightly above the average score 2.50 and it clearly indicates that Starwood Hotels has success to control external opportunity and threats. The high weight in hotel industry about the grow of travel activity. Hotel industry were projected to increase to $29.7 billion in 2007 and Increasing demand in Asia especially in China, India and Middle East. That area grow for new developing country and become new world economic power. This situation make 0.17 weight tat show the importance thing in hotel industry. In same time Starwood manage more than 100 countries including Europe, Africa, and Middle East. Focusing in Asia Pacific are the importance strategic for Starwood and in same time they must control and stabilize the current market in USA and Italy. Diverse target market also have high weight with 0.15 at the second highs score in hotel industry. Starwood must understanding the different target market in diversification market segmentation. Improving economic conditions, developing infrastructures, the development of the urban middle class and growing foreign tourism are driving strong growth in emerging markets and divescification. Starwood Focus on new development and franchising go to the Asia Pacific market and try to stabilize the European market. Facing maturity and intense competition in key markets, most notably the US, is forcing travel accommodation operators to diversify their consumer base beyond the business travelers and attract a wider range of travelers. Potential downturns in travel

by “11 sept” crisis make losses for hotel and travel

industry. People worry going travel and take vacation. It was give the bad situation to Starwood revenue from 2002 until 2005. Room price are the male key play role in purchasing decision. Many hotel try to reduce the cost to provide the low price of room but still provide the good quality of service. Starting end of 2006 many competitor of Starwood Hotels upgrading or to renovation and improving their capability to compete or gain the competitive advantage. Change new technology for new equipment facilities to become future impression. Rising fuel prices, environmental concerns, political instability, terrorist threats and economic downturns all have 8

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the potential to dampen the performance of tourism flows and, consequently, the performance of travel accommodation as a whole.

4.0 INTERNAL ANALYSISI

4.1 FINANCIAL RATIO ANALYSIS

Financial Ratio Analysis makes possible the company to spot trend in the competitive business and to evaluate its performance and situation with the standard performance of similar activities in the same industry. Following table analyze the major five ratios including the liquidity ratios, activity ratios, leverage ratios, profitability ratios and growth ratios.

Liquidity Ratio a) Current Ratio =

Current Asset Current Liability

2005

2006

2 283 000

1 810 000

2 879 000

2 461 000

= 0.79

= 0.73

Summary Current ratio measures the extent to which a firm can meet its short term obligation. A relatively high current ratio is an indication that the firm is liquid and has the ability to pay its current obligation in time and when they become due. On the other hand, a relatively low current ratio represent improvement in the liquidity position of the firm while a decrease in the current ratio represent that there has been deterioration in the liquidity position of the firm.

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b) Quick Ratio = Current Asset – Inventory

2005

2006

2 283 000- 280 000

1 810 000-566 000

2 879 000

2 461 000

=0.70

= 0.50

Current Liability

Summary: The quick ratio is very useful in measuring the liquidity position of a firm. It measures the firm capacity off current obligation immediately and its more rigorous tests of liquidity than the current ratio. Liquid ratio is more rigorous test of liquidity than the current ratio because it’s eliminated inventories and prepaid expenses part of current asset.

Leverage Ratio

a) Debt to Total Asset Ratio =

Total Debt

2005

2006

7 243 000

6 272 000

12 454 000

9 280 000

= 0.58

= 0.67

Total Asset

Summary: This ratio measures the percentage of total fund that are provided by creditor. A high debt ratio is viewed as a risky by investor, especially leaders. 10

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Debt to Equity Ratio =

Total Debt 2005

2006

7 243 000

6 272 000

5 211 000

3 008 000

= 1.39

= 2.08

Total Stockholder Equity

Summary: This ratio measures the percentage of total

fund that are provided by creditor versus by owner. This ratio also measures how much money a company should safely be able to borrow over long period of times. The normal levels of debt to equity have change overtime, and depend on both economic factor and society general feeling toward credit.

b) Long Term Debt to Equity Ratio =

Long Term Debt

2005

2006

2 926 000

1 827 000

5 211 000

3 008 000

= 0.56

= 0.60

Total Stockholder Equity

Summary: This ratio is measures of the mix of debt and equity within the firm total capital. It is an important measure of risk, because a high level of debt can burden the income statement with excessive interest. These make the firm profitability fragile in recessionary times.

11

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c) Times Interest Earned Ratio = Profit before Interest & Tax Total Interest Charges

2005

2006

(822 000)

(839 000)

258 000

244 000

= -3.18

= -3.44

Summary: The more times earning cover existing interest, the safer it is to lend the firm make more money.

Activity Ratio

a) Inventory Turnover =

Sales

2005

2006

5 977 000

5 979 000

280 000

566 000

= 21.35

= 10.56

Inventory of Finished Good

12

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b) Fixed Asset Turnover =

Sales

2005

2006

5 977 000

5 979 000

(1 2454 000 - 2 283 000)

(9 280 000-1 810 000)

= 0.59

= 0.80

Fixed Asset

Summary: This ratio measures the efficiently and profit earning capacity of the concern. The higher the ratio, greater is the intensive utilization of fixed asset. Lower ratio means under-utilization of fixed cost.

c) Total Asset Turnover =

Sales

2005

2006

5977000

5979000

12454000

9280000

= 0.48

= 0.64

Total Asset

Summary: In general, company that generates more sales with a given level of asset does better that a firm that generates fewer sales with the same assets.

13

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Profitability Ratio a) Gross Profit Margin = Sales – COGS

2005

2006

(5977000-0)

(5979000-0)

5977000

5979000

=1

=1

Sales

Summary: The gross profit is a measurement of a company manufacturing and distribution efficiently during the production progress. The gross profit tells an investor the percentage of revenue/sales left after subtracting the COGS. A company that boast a higher gross profit margin than it competitor and industry is more efficient.

b) Operating Profit Margin =

Earnings before Interest & Tax

2005

2006

900 000

926 000

5 977 000

5 979 000

= 0.15

= 0.15

Sales

Summary: The operating margin is another measurement of management efficiently. It compares the quality of a company activity to its competitor. A business that has a higher operating margin

14

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than other in the industry is generally doing better as long as the gain didn’t come by piling on debt or taking highly risky speculation with shareholder money.

c) Net Profit Margin = Net Income Sales

2005

2006

422 000

1 043 000

5 977 000

5 979 000

= 0.07

= 0.17

2005

2006

423 000

1 115 000

5 211 000

3 008 000

= 0.08

= 0.37

Summary: It measures after tax profit per dollar of sales.

d) Return on Total Asset (ROA) = Net Income Total Asset

15

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Summary: A business uses asset and the skill of its people to earn profit. ROA measures the overall ability of the firm to utilize the asset in which it has invested to earn profit. The higher the ROA is the better.

e) Return on Stockholder Equity ROA =

2005

2006

423 000

1 115 000

5 211 000

3 008 000

= 0.08

= 0.37

Net Income Total Stockholder Equity

Summary: Return on Equity is said to be in good times when it value is higher than Return on Asset and in a bad times when lower than ROA.

16

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Profitability Ratio

a) Earning Per Shares (EPS) =

Net Income

2005

2006

422000

1043000

4000

2000

= 105.5

= 521.5

No of shares of common stock outstanding

Summary: It measures the earning available to the owner of common stock. Even through the earning is not available to the owner of common stock, but the amount loss is increased compared the last year.

Growth Ratio a) Sales = Annual percentage growth in total sale Total sale decrease compare last year

17

2005

2006

(5977000-5368000)

(5979000-5977000)

5368000

5977000

= 0.11

= 0.003

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b) Net Income = Annual Percentage growth in profit Total growth increase compares last year

2005

2006

(422000-395000)

(1043000-422000)

395000

3 008 000

= 0.07

= 1.47

4.2 INTERNAL SUCCES FACTORS The strengths and weaknesses are the major key points of company’s internal position analysis and they are identified and utilized in order to make the internal investigation, which is the internal evaluation matrix. The source of internal success factor follow by Porter Value Change Analysis.

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Strengths

i.

Centralization of reservations and marketing for Starwood Hotel

ii.

Customer loyalty through Starwood Preferred Guest frequent reward program.

iii.

Plan to reduce investment in owned real estate for focusing their management and franchise business.

iv.

Strong Brand positioning

Weaknesses

i.

Many speculation was attack the top management and make a lot of top management change.

ii.

Weak Financial Performance No Change Revenue ( Finance)

iii.

Most hotel not operating at full capacity.

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4.3 INTERNAL FACTOR EVALUATION MATRIX (IFE)

No. Key Internal Factors

Weights

Rating

Weighted Score

S

1.

Centralization

of

reservations

and 0.12

4

0.48

Customer loyalty through Starwood 0.15

4

0.60

4

0.76

0.18

3

0.54

Many speculation was attack the top 0.17

3

0.51

No 0.10

1

0.10

Most hotel not operating at full 0.09

2

0.18

marketing for Starwood Hotel S

2.

Preferred

Guest

frequent

reward

program. S

3.

Plan to reduce investment in owned 0.19 real

estate

for

focusing

their

management and franchise business. S

4

W 5

Strong Brand positioning

management and make a lot of top management change. W 6

Weak

Financial

Performance

Change Revenue W 7

capacity. 1.00

3.17

After evaluating and analyzing the weights of strengths and weaknesses of the company, the total weighted score is 3.17 which slightly above the average score 2.50 and it clearly indicates that Starwood Hotels has success to built internal strength and weaknesses.

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Starwood plan to reduce investment in owned real estate for focusing their management and franchise business was the high weight in the Starwood industry it is 0.19. Starwood sell the some of their investment and get cash for focusing on management and franchise activity. That will give move capability to Starwood focus on small their business to grow into the international market. This strategic are very importance to Starwood grow in the market.

Centralization for reservation and marketing the Starwood hotel by selling Starwood brand with all business from own hotel the franchising hotel. Centralization help Starwood easy to manage and give advantage to customer choose vacation around the Starwood service and product base. Loyalty help firm establish in long term, by using Starwood reward program will make return guest to the Starwood product and service. This well help Starwood maintain their customer loyalty. Starwood Hotels & Resorts Worldwide Inc's strategy focuses on the development of lifestyle brands at a leisure price point supported by innovative marketing that makes an emotional connection with customers. Speculation was make good CEO Stevent Heyer resigned and Mr Barry Sternlicht left his board position from Starwood. High turnover of top management make change the environment of management style of Starwood.

Weak Financial Performance by no high increasing starting 2005 until 2006 and small increase from 2004 until 2005. Some investment not makes profit to Starwood and they must terminate that business. Activity in hotel industry are not maximization to fulfill the capability and capacity that they have. It make lost of the investment for the unutilized facilities, equipment and activity that use a lot of money to develop. That make not full return in investment pay back to the company

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5.0 MAJOR ISSUE

1. CORPORATE LEVEL i.

Many speculation was attack the top management and make a lot of top management change.

ii.

Development plan to grow in big capacity in Asia by Signed agreement to build nearly 20 large hotel in Asia with selling some asset to backup.

2. BUSINESS LEVEL i.

Weak Financial Performance No bigger Change in Revenue 2005 and 2006.

ii.

Late follow the technology change

iii.

High competition in Luxury service.

iv.

Failed to increase the local or current market like in US and Italy

3. FUNCTIONALLEVEL i.

Hotel not operating at full capacity.

ii.

Diverse target market.

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6.0 STRATEGIC POSITION AND ACTION EVALUATION (SPACE) MATRIX

Internal Analysis

External Analysis

Financial Position (FP)

Industry position ( IP )

ROI

+5

Growth potential

+5

Leverage

+4

Profit potential

+4

Net income

+5

Financial stability

+6

Liquidity

+2

Extend leverage

+5

Total

+16

Total

+20

Average

4

Average

5.0

Competitive position ( CP )

Stability position ( SP )

Market share

-1

Competitive pressure

-3

Product quality

-2

Risk involve in business

-2

Customer loyalty

-2

Technological change

-4

Technology know how

-5

Price range competing

-1

Total

-10

Total

-10

Average

-2.5

Average

-2.5

23

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SPACE MATRIX

The strategic position and action evaluation (space) matrix is one of the significant techniques to recognize the kind of the strategic company has to choose. The matrix consists of different areas with are specific strategic in each. The axis of the SPACE represent two internal dimension (financial position and competitive position) and two external dimension (stability position and industry position) which are important in order to identify company’s overall strategic position.

(2.5, 1.5)

X-axis= CP +IP Y-axis=SP+FP

X=-2.5+(+5)= +2.5 Y=-2.5+(+4)= 1.5

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Result from the SPACE Matrix show us, Starwood Hotel Inc in the position of “AGGRESSIVE”. This tell us about the situation and strategic that Starwood and use for growing their business. Some of the strategic are mention inside the graph, Starwood can use backward, forward, horizontal and integration strategy. Starwood also can use market develop and penetration, product development and diversification strategy.

In other word, we can said that Starwood are in the good condition situation. This position give Starwood advantage and capability to do diversification, product and market development to focus and do forward integration their business. Starwood easy to make the decision but this situation still under high competition by little company but it the high level also. The stronger brand name give them opportunity to grow faster.

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7.0 THE SWOT MATRIX

Strength

Weakness

1.Centralization reservations and marketing 1.Many speculation was attack the top 2.Customer loyalty Guest frequent reward program.

management and make a lot of top management change.

3.Plan to reduce investment in owned real 2.Weak estate for focusing their management and franchise business.

1.Hotel industry were projected to increase to $29.7 billion in 2007. 2.Asia Pacific market had grown by 4.8% and

Performance

No

Change Revenue 3.Most hotel not operating at full

4.Strong Brand positioning Opportunities

Financial

capacity.

SO – Strategy

WO – Strategy

Develop and invest more properties at - Re structured organizational chart by high geographical demand need to

decentralization the power follow by

show the stronger of Starwood Brand..

the regional location operation.

European segmentation continue dominant -

Increase

play in this industry.

promotion, improvement E-reservation

nonprofit and focus and full utilize on

3.Diverse target market.

and improvement of Guest Reward

the franchising and growing area.

4.Signed agreement to build nearly 20 large

program.

hotel in Asia.

marketing

function

like - Reduce the investment by selling

(W1,W2, W3,O1,O2, O3,O4)

(S1, S2, S3,S4,O1, O2,O3,O4)

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STARWOOD HOTELS & RESORTS WORLDWIDE

Threats 1.Potential downturns in travel 2.Competitive pressure by changing the new technology 3.Room Price competition 4.Decreasing the revenue in United States and Italy in 2006.

ST – Strategy

28

WT – Strategy

- Reduce the cost and price room when - Small the structure to reduce operation downturns crisis to cover breakeven cost.

costs.

- Follow the competitor upgrade the new - Increase the quality of product and equipment and technology.

services but at the cheaper price.

- Increase sale and profit on high season - Increase sale on domestic market by vacation by promotion and additional variant package.

making promotion to catch break event. (W1,W2,W3,T1,T2,T3)

( S1,S2,S3,S4,T1,T2,T3)

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8.0 RECOMMENDATION

SWOT analysis provide as the decision making that we can take from several success factor key from external environment and external environment. From this analysis we can conclude some decision that can help Continental Airline to make decision making for growing their business. Result from the SPACE Matrix show as that Continental Airline sit under the area of COMPETITIVE situation. According SPACE Matrix, suitable strategic that can use by Starwood are backward, forward, horizontal integration strategy, market develop and penetration, product development and diversification strategy. I’m use some of that kind strategic to answer the problem of Starwood Hotel & Resort Worldwide Inc. So all of decision making that can use by Continental Airline are show below :-

i.

SO :a. Develop and invest more properties at high geographical demand need to show the stronger of Starwood Brand. b. Increase marketing function like promotion, improvement E-reservation and improvement of Guest Reward program.

ii.

WO a. Re structured organizational chart by decentralization the power follow by the regional location operation. b. Reduce the asset by selling nonprofit and focus and full utilize on the franchising and growing area.

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iii.

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ST a. Reduce the cost and price room when downturns crisis to cover breakeven cost. b. Follow the competitor upgrade the new equipment and technology. c. Increase sale and price on high season vacation by promotion and additional variant package.

iv.

WT a. Small the structure to reduce operation costs. b. Increase the quality of product and services but at the cheaper price. c. Increase sale on domestic market by making promotion to catch break event.

Business strategic can be divide by three level of business. That level is Cooperate Level is the high decision making from top management, Business Level is the middle decision making from the middle class manager or departmental leader, and last is Operational level is the low level decision making make by the team leader or supervisor to make sure the running of the operation are in right way follow by the top management strategic from business level and cooperate level. For the cooperate level, they should try develop and invest more properties at high geographical demand need to show the stronger of Starwood Brand. Cooperate level also must determine what are asset they want to liquid for support their grow activity. For expend strategic to worldwide business, Starwood must re structured organizational chart by decentralization the power follow by the regional location operation. This is because management style are different between the different regional. For business level, they must take action by play the price whether reduce or increase the price room when downturns crisis to archive the breakeven income. Business level also alert for what are the competitor action and some are about technology company must follow or advance 30

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the competitor upgrade the new equipment and technology to ensure that company are win the competition depend on the ability and capability of financial provided. For the functional level, they must take action to increase marketing function like promotion, improvement E-reservation and improvement of Guest Reward program to support the activity of increasing the demand especially market in US and Italy . Functional level also must increase the quality of product and services with minimum cost that they can make.

9.0 CONCLUSION

Starwood Hotel has expansion plan for the middle is and sign agreements for three W hotels in Dubai and Doha as well as the Westin and luxury collection property in Agaba, Jordan. Should Starwood use their existing brands to expand event further into these market. Starwood has also developed are unique group of product and services including bliss spas, white Tea product, and the heavenly bed and bath product. The used intermediaries such as Travelocity and orbits are shaping the image of many brands in the hotel industry. From this analysis, I’m believe that Starwood Hotel & Resort Worldwide can more growing to the worldwide business. In current year now 2014, we saw that Starwood are already success grow to international by provide the best service of hotel industry. Franchise strategic that Starwood use for to show their strong brand name now already success by providing service with franchise their brand to the worldwide. Now Starwood are the largest hotel company in worldwide.

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