Transcript Good, Bad, or Ugly? Scott Hermes, CMP Starwood Hotels and Resorts Reality Check We are dealing with some market certainties as conditions improve On.

Good, Bad, or Ugly?
Scott Hermes, CMP
Starwood Hotels and Resorts
Reality Check
We are dealing with some market certainties as conditions improve
On a broad basis customer negotiating posture often lags changes
in market trends
You will likely have competitors slower to react to changing
conditions than you
Diverse ownership needs
Cash, Occupancy, RevPAR index
Some sales people always lead with price
Strategic Sourcing is trying to commoditize
our industry
Easier to just quote a price than to sell the value
Are we order takers or sales people?
Some Good News
Corporate Meetings and Travel and
are coming back!
Association and SMERF blocks are
coming in much stronger than last
year
New opportunities are on the
upswing
Group bookings are gaining momentum
across the country each month
Leads are up… but group size is down
Booking windows continue to compress
What does the future hold?
Will large meetings return?
Preliminary indications are yes in some
segments but it’s still early
Insurance and Incentive programs
appear to be coming back to life
Some segments are starting to source
larger meetings that had been put on
hold
Customer facing and User Group
meetings
Will demand outpace supply
growth for meetings?
I believe the future is bright for San Diego
Expect the Corporate Market to
present short to mid term group
opportunities
Corporate has always enjoyed San
Diego as a destination
A resort location without some of
the pure resort stigma
Association and other segments
will not be tempted by
competitive market madness
Supply/Demand balance will
return to a normal level
Thank you