Starwood Reports Fourth Quarter and Full Year 2005 Results
Starwood Hotels & Resorts Worldwide, Inc. (NYSE: HOT):
Fourth Quarter 2005 Highlights
- EPS from continuing operations for the fourth quarter of 2005 increased 37% to $0.70, compared to $0.51 in the fourth quarter of 2004. Excluding special items, EPS from continuing operations increased 25% to $0.71 for the fourth quarter of 2005 compared to $0.57 for the fourth quarter of 2004.
- REVPAR at Same-Store Owned Hotels in North America and worldwide increased 12.2% and 9.4%, respectively, when compared to the fourth quarter of 2004. ADR increased 9.5% and 7.0% in North America and worldwide, respectively.
- Margins at Starwood branded Same-Store Owned Hotels in North America improved approximately 140 basis points when compared to the fourth quarter of 2004, despite the negative impact of a significant 30% increase in energy costs in North America.
- Globally, REVPAR for Same-Store Owned Hotels grew for W Hotels (18.9%), followed by Westin (8.4%), Sheraton (8.2%), and St. Regis/Luxury Collection (5.2%), with each of these brands experiencing both ADR and occupancy gains.
- Third-party management and franchise fees, including fees from the Le Meridien hotels from the acquisition date of November 24, 2005, increased 30.2% in the quarter when compared to 2004.
- Excluding the fractional sales at the St. Regis Aspen and residential sales at the St. Regis in San Francisco, contract sales at vacation ownership properties were up 17.8% when compared to 2004. However, reported revenues from vacation ownership and residential sales decreased $5 million in the quarter when compared to 2004 primarily due to percentage of completion accounting for pre-sales at new timeshare projects.
- Net income for the fourth quarter of 2005 increased 59% to $159 million, compared to net income of $100 million in the fourth quarter of 2004. Excluding special items, income from continuing operations increased 32% to $162 million in the fourth quarter of 2005 compared to $123 million in the same period of 2004.
- Total Company Adjusted EBITDA increased 19.6% to $391 million when compared to $327 million in 2004.
- For the thirteenth quarter in a row, total Company market share in North America increased for the Company's owned and managed hotels as well as for system-wide hotels. According to Smith Travel Research, system-wide market share in North America increased approximately 100 basis points for the full year 2005 when compared to 2004.
Starwood Hotels & Resorts Worldwide, Inc. ("Starwood" or the "Company") today reported EPS from continuing operations for the fourth quarter of 2005 of $0.70 compared to $0.51 in the fourth quarter of 2004. Excluding special items which net to a negative $3 million and primarily relate to severance related costs associated with the corporate restructuring in the quarter, net gains realized on the sale of several hotels partially offset by a hotel impairment charge and additional tax expense arising from the deposit with the IRS of funds for taxes claimed as a result of the 1998 disposition of ITT World Directories, EPS from continuing operations was $0.71 for the fourth quarter of 2005 compared to $0.57 in the fourth quarter of 2004. Income from continuing operations was $159 million in the fourth quarter of 2005 compared to $111 million in 2004. Excluding special items, income from continuing operations was $162 million for the fourth quarter of 2005 compared to $123 million in 2004. In connection with the announced sale of 38 hotels to Host Marriott Corporation, the Company's EPS in the fourth quarter was positively impacted by approximately $17 million or $0.05 per share associated with the cessation of depreciation of these assets held for sale. The Company's results continued to be negatively impacted by lost business in New Orleans, Cancun and Miami as a result of damage at its owned hotels from Hurricanes Katrina and Wilma. Although the Company has recorded expenses for its insurance deductibles associated with these storms, in accordance with accounting rules, it has not recorded any of its expected recoveries under its existing business interruption insurance policies. Net income (after discontinued operations) was $159 million and EPS was $0.70 in the fourth quarter of 2005 compared to $100 million and EPS of $0.46 in the fourth quarter of 2004. The effective tax rate for the fourth quarter of 2005 was 21.4%.
Steven J. Heyer, CEO, said "I am very pleased with our results this quarter. We beat our top and bottom line expectations and for thirteen quarters in a row our market share has increased. We are moving full speed ahead with all of our strategic initiatives and with the brand building initiatives rolling out across our system, we expect our momentum to continue.
During the quarter we made significant progress toward reducing our investment in owned real estate, while maintaining long-term, attractive management agreements with an outstanding partner. I couldn't be more pleased with the results of this transaction and the future opportunities it creates for us. And, as we said when we announced the deal, it re-opened our window for share repurchases. Since our window opened, we have repurchased $373 million in stock, and we plan to be buyers of our stock throughout 2006.
We closed on the purchase of the Le Meridien brand, adding another upper upscale brand and 122 hotels to our system. The brand is very strong, and we are pleased with the quality of the hotel management teams in place. After these two transactions, our earnings become more balanced between hotel ownership and fee income. We expect to aggressively drive both businesses.
Entering into 2006, we have significant opportunities ahead of us. We will continue to work on unlocking the value in our owned real estate. Our core lodging business remains strong and supply continues to be constrained. Our pipeline continues to grow, outpacing our fair share, and we've added resources to aggressively pursue the opportunity. We are focused on our key initiatives and expect 2006 to be another great year at Starwood with our core business, on a comparable basis, growing approximately 15%."
Operating Results
Fourth Quarter Ended December 31, 2005
Cash flow used for operations was $54 million compared to cash flow from operations of $201 million in 2004. The decrease in cash flows from operations was primarily due to the payment, in October 2005, of the deposit with the IRS associated with the 1998 disposition of ITT World Directories. Total Company Adjusted EBITDA was $391 million compared to $327 million in 2004.
Owned, Leased and Consolidated Joint Venture Hotels
REVPAR for Same-Store Owned Hotels in North America and worldwide increased 12.2% and 9.4%, respectively, when compared to 2004. REVPAR at Same-Store Owned Hotels in North America increased 18.9% at W, 11.7% at Sheraton, 10.5% at Westin, and 10.3% at St. Regis/Luxury Collection. REVPAR growth was particularly strong at the Company's owned hotels in New York, Atlanta, Houston, Chicago, and the Hawaiian Islands. Revenue from transient travel was up 16.6% in North America when compared to 2004. Internationally, Same-Store Owned Hotel REVPAR increased 10% after adjusting for the impact of foreign exchange. As reported, in US dollars, Same-Store Owned Hotel REVPAR increased 1.5%, with Latin America up 9.2% (REVPAR in owned hotels in Argentina, Brazil, Peru and resort areas in Mexico was particularly strong, excluding two hotels in Cancun which were closed due to damage from Hurricane Wilma), Europe up 1.6%, and Asia Pacific down 8.5% due to the fact that one of the four owned hotels in this region was under significant renovation during the quarter.
Total revenues at Same-Store Owned Hotels worldwide increased 6.6% to $843 million when compared to $791 million in 2004 while costs and expenses at the hotels increased 5.7% to $620 million in 2005 compared to $587 million in 2004. Total revenues at Same-Store Owned Hotels in North America increased 9.2% to $626 million in 2005 when compared to $573 million in 2004 while costs and expenses at these hotels increased 7.3% to $453 million when compared to $422 million in 2004. The increase in costs and expenses is primarily due to an increase in occupancy and a significant 30% increase in energy costs in North America.
System-wide REVPAR; Management/Franchise Fees
System-wide (owned, managed and franchised) REVPAR for Same-Store Hotels in North America, excluding Le Meridien hotels, increased 10.8%; W Hotels 17.9%, Sheraton 11.3%, Westin 9.8%, Four Points by Sheraton 9.3%, and St. Regis/Luxury Collection 6.9%. For the thirteenth quarter in a row, total Company market share in North America increased for the Company's owned and managed hotels as well as for system-wide hotels. According to Smith Travel Research, system-wide market share in North America increased approximately 100 basis points for the full year 2005 when compared to 2004. Total third-party management and franchise fees, including fees from the Le Meridien hotels from the acquisition date of November 24, 2005, were $104 million in the quarter, up $24 million, or 30.2%, from last year.
Vacation Ownership and Residential
Vacation ownership and residential revenue, which excludes gains on sales of notes receivable, decreased $5 million, or 2.5% to $192 million when compared to 2004. This decrease was primarily due to a larger portion of vacation ownership sales coming from pre-sales at new phases under construction at the Westin Ka'anapali Ocean Resort Villas in Maui, Hawaii and the Westin Kierland Villas in Scottsdale, Arizona which are recognized based on percentage of completion in accordance with US GAAP. Contract sales, excluding fractional sales at the St. Regis Aspen and residential sales at the St. Regis in San Francisco, were up 17.8% when compared to 2004. The average price per timeshare unit sold increased approximately 11.8% to $22,868, and the number of contracts signed increased approximately 5.3% when compared to 2004.
Residential sales continued in the fourth quarter at the St. Regis Museum Tower in San Francisco. The Company recognized revenues of approximately $42 million, an increase of $27 million compared to 2004. The St. Regis Museum Tower hotel and condominiums opened in November 2005.
In addition to its robust pipeline of existing vacation ownership inventory, the Company continues to evaluate its existing owned real estate for potential conversion to vacation ownership, fractional, or residential projects. For example, the Company is converting four floors of the St. Regis hotel in New York into fractional units and residences and has partially demolished the Sheraton in Cancun, Mexico, where it will build a timeshare development that is expected to have up to 73 units upon completion of the first phase. The Company is also working with its business partners to develop similar conversion opportunities at managed hotels.
Currently, the Company is working on new phases at the Westin Ka'anapali Ocean Resort Villas in Maui, Hawaii, the Westin Kierland Villas in Scottsdale, Arizona, the Sheraton Broadway Plantation in Myrtle Beach, South Carolina, and the Sheraton Vistana Villages in Orlando, Florida.
In addition to the expansion at the existing properties above, Starwood Vacation Ownership is in the predevelopment phase of several new vacation ownership resorts including one in Princeville on the island of Kauai, Hawaii. The Company is also working on a third St. Regis-branded fractional resort in Punta Mita, Mexico.
During the fourth quarter of 2005, the Company sold approximately $221 million of vacation ownership notes receivable and recognized gains of $25 million as compared to gains of $3 million in the same period of 2004.
Results for the Twelve Months Ended December 31, 2005
EPS from continuing operations increased 9% to $1.88 compared to $1.72 in 2004. Excluding special items, EPS from continuing operations increased 44% to $2.34 compared to $1.62 in 2004. Income from continuing operations was $423 million compared to $369 million in 2004. Excluding special items, income from continuing operations increased 51% to $526 million compared to $348 million in 2004. Net income (after discontinued operations) was $422 million and EPS was $1.88 compared to $395 million and $1.84, respectively, in 2004.
Cash flow from operations was $764 million compared to $578 million in 2004. Total Company Adjusted EBITDA was $1.417 billion compared to $1.150 billion in 2004.
Brand Development/Unit Growth
During the fourth quarter, the Company signed 42 hotel management and franchise contracts (representing approximately 15,000 rooms) including the W Las Vegas (Las Vegas, Nevada, 4,000 rooms), Westin Orlando Convention Center (Orlando, Florida, 603 rooms), and W Pudong (Shanghai, China, 400 rooms). In addition to the 122 Le Meridien hotels (representing approximately 31,700 rooms) that are currently in the system following the Company's acquisition of the brand in November 2005, nine new hotels and resorts (representing approximately 2,200 rooms) entered the system, including the Westin Paris (Paris, France, 438 rooms) and the Sheraton Haikou (Haikou, China, 341 rooms). Thirteen properties (representing approximately 3,500 rooms) were removed from the system during the quarter (4 Sheratons, 4 Four Points, 3 Westins and 2 unbranded). The Company expects to open more than 50 hotels (representing approximately 14,000 rooms) in 2006. The Company had approximately 220 hotels and approximately 65,000 rooms in its active global development pipeline at December 31, 2005, with roughly half of that number in international locations.
In November 2005, the Company opened its third Remede Spa in the St. Regis hotel in San Francisco. The Company also had six Bliss spas at the end of 2005. In 2006, the Company plans to open 2 new Bliss spas in W hotels in Dallas and Los Angeles, with several other Bliss and Remede Spas in various planning stages.
Distribution
Starwood's central distribution systems gross bookings during the fourth quarter of 2005 increased approximately 10.1% when compared to 2004. Gross online bookings through proprietary branded websites increased 31.2% as compared to 2004, with gross dollar bookings from the proprietary branded sites increasing 38.3%. Gross online dollar bookings represented approximately 12.2% of the overall gross dollar bookings, with 78.6% of that coming from our proprietary branded websites, as compared to 10.4% of overall gross dollar bookings, with 74.6% of that from proprietary branded websites in 2004.
The above distribution figures do not include the Le Meridien hotels. The Company expects to integrate these hotels into the starwoodhotels.com and related websites by the end of the first quarter of 2006.
Capital
Gross capital spending during the quarter included approximately $99 million in renovations of hotel assets including construction capital at the Sheraton Hotel & Towers in New York, New York, the Sheraton Hotel & Marina in San Diego, California, and the Sheraton Royal Denarau Resort in Nadi, Fiji. Investment spending on gross VOI inventory was $36 million, which was offset by cost of sales of $35 million tied to VOI sales during the quarter. The inventory spend included VOI construction at the Westin Ka'anapali Ocean Resort Villas in Maui, Hawaii, the Sheraton Vistana Villages in Orlando, Florida, and the Westin Kierland Villas in Scottsdale, Arizona. Additionally during the quarter, further investment spending of $241 million included the purchase of the Le Meridien brand and the related management and franchise business, which was substantially offset by the return of the Company's previous investment in the outstanding senior debt of Le Meridien, as well as the development of the St. Regis Museum Tower in San Francisco which consists of 260 hotel rooms and 102 condominium units and which as discussed earlier, opened in November 2005. Construction of this project is substantially complete, and through December 31, 2005, the Company has invested $318 million in the project. The Company expects to realize gross proceeds of approximately $245 million from the sale of the project's condominiums and has recognized approximately $198 million in revenues through the end of 2005.
Share Repurchase
For the quarter ended December 31, 2005, the Company repurchased approximately 4 million shares at a total cost of approximately $253 million. At December 31, 2005, approximately $1.043 billion remained available under the Company's Board authorized share repurchase program. At December 31, 2005, Starwood had approximately 219 million shares outstanding (including partnership units and exchangeable preferred shares).
From January 1, 2006 through February 1, 2006, the Company repurchased an additional 1.9 million shares at a total cost of approximately $120 million.
Dividend
Starwood Hotels & Resorts (the "Trust") declared its annual dividend for 2005 of $0.84 per share, which was paid on January 20, 2006 to shareholders of record on December 31, 2005.
The Trust expects to declare a dividend for the first quarter of 2006 of approximately $0.21 per Share to shareholders of record as of a date in the latter part of February 2006 to be paid in early March 2006. The dividend declaration and the amount are subject to approval of the Trust's Board of Trustees.
Balance Sheet
At December 31, 2005, the Company had total debt (including debt classified as held for sale) of $4.145 billion and cash and cash equivalents (including $307 million of restricted cash) of $1.204 billion, or net debt of $2.941 billion, compared to net debt of $3.136 billion at the end of the third quarter of 2005.
At December 31, 2005, debt was approximately 69% fixed rate and 31% floating rate and its weighted average maturity was 4.4 years with a weighted average interest rate of 6.27%. The Company had cash (including total restricted cash) and availability under domestic and international revolving credit facilities of approximately $2.147 billion.
Asset Sales
In 2005, in addition to the sale of three hotels in joint ventures that we hold minority interest in, the Company sold ten wholly-owned hotels for cash proceeds of approximately $510 million. Additionally, in January 2006 the Company completed the sale of four hotels for proceeds of $234 million in cash. As previously announced, the Company entered into a definitive agreement with Host Marriott Corporation to sell 38 hotels for cash, assumption of debt and stock. As part of the agreement, the Company will manage the hotels for up to 40 years.
Outlook
All comments in the following paragraphs and certain comments in this release above are deemed to be forward-looking statements. These statements reflect expectations of the Company's performance given its current base of assets and its current understanding of external economic and geo-political environments. Actual results may differ materially.
The Company's guidance for 2006 assumes:
- The close of the previously announced transaction with Host Marriott Corporation at the end of the first quarter.
- Stock option expense of approximately $45 million or $0.13 per share.
- Since we last provided forward looking estimates, four additional asset sales which have closed in 2006 and three hotels expected to be sold in the first quarter of 2006 which contributed approximately $122 million in revenues and $87 million in expenses in 2005.
For the full year 2006, assuming REVPAR at Same-Store Owned Hotels in North America increases approximately 8% - 10% versus 2005:
- Full year Adjusted EBITDA would be expected to be approximately $1.210 billion assuming:
- Worldwide Same-Store Owned Hotel EBITDA growth of 15% to 17%.
- Worldwide Same-Store Owned Hotel margin improvement of approximately 150 - 200 basis points.
- Growth from management and franchise fees of approximately 18% to 20%.
- Growth from our timeshare and residential business of approximately 20% to 25% (excluding gains on sales of receivables).
- Full year income from continuing operations, excluding special items, would be expected to be approximately $475 million at an effective tax rate of approximately 33%. This assumes a 20% tax rate in the first quarter and a 35% tax rate for the remainder of the year.
- Full year EPS would be expected to be approximately $2.14.
- Full year capital expenditures (excluding timeshare inventory) would be approximately $475 million, including $175 million for maintenance, renovation and technology and $300 million for other growth initiatives. Additionally, net capital expenditures for timeshare inventory would be approximately $175 million.
- For the full year the Company expects cash interest expense of approximately $175 million and cash taxes of approximately $150 million.
For the three months ended March 31, 2006, if REVPAR at Same-Store Owned Hotels in North America increases approximately 10% - 12% versus the same period in 2005:
Adjusted EBITDA would be expected to be approximately $238 million assuming:
- Worldwide Same-Store Owned Hotel EBITDA growth of 15% to 17%.
- Worldwide Same-Store Owned Hotel margin improvement of approximately 150 - 200 basis points.
- Growth from management and franchise fees of approximately 18% to 20%.
- A decline in operating income from our timeshare and residential business of $40 million to $45 million due to percentage of completion accounting for pre-sales at new timeshare projects.
- Income from continuing operations, excluding special items, would be expected to be approximately $74 million at an effective tax rate of approximately 20%.
- EPS would be expected to be approximately $0.33.
The Company's guidance excludes:
- The impact of the adoption of SFAS No. 152, "Accounting for Real Estate Time-Sharing Transactions," which is expected to result in a one time pre-tax charge of approximately $100 million to $120 million in the first quarter of 2006.
- Transition costs associated with the Le Meridien transaction which closed in 2005 of approximately $15 million in the first quarter and $30 million in the full year.
- A one time income tax benefit and certain one-time financing costs which will be recorded when the transaction with Host Marriott Corporation closes.
Special Items
The Company recorded net charges of $3 million (after-tax) for special items in the fourth quarter of 2005 compared to $12 million of net charges (after-tax) in the same period of 2004.
Special items in the fourth quarter of 2005 primarily relate to severance related costs associated with the corporate restructuring in the fourth quarter of 2005, net gains realized on the sale of several hotels partially offset by a hotel impairment charge and additional tax expense arising from the deposit with the IRS of funds for taxes claimed as a result of the 1998 disposition of ITT World Directories.
The following represents a reconciliation of income from continuing operations before special items to income from continuing operations after special items (in millions, except per share data):
Three Months
Ended Year Ended
December 31, December 31,
----------------- ---------------
2005 2004 2005 2004
------- ------- ------- -------
Income from continuing operations
$162 $123 before special items $526 $348
------- ------- ------- -------
$0.71 $0.57 EPS before special items $2.34 $1.62
------- ------- ------- -------
Special Items
Restructuring and other special
(13) – (charges) credits, net (a) (13) 37
Adjustment to costs associated with
– - construction remediation (b) – 4
Gain (loss) on asset dispositions and
2 (25) impairments, net (c) (30) (33)
------- ------- ------- -------
(11) (25) Total special items - pre-tax (43) 8
Income tax benefit (expense) for
5 10 special items (d) 16 (2)
Tax expense on repatriation of
– - foreign earnings (e) (47) -
Reserves and credits associated with
3 3 tax matters (f) (29) 15
------- ------- ------- -------
(3) (12) Total special items - after-tax (103) 21
------- ------- ------- -------
$159 $111 Income from continuing operations $423 $369
------- ------- ------- -------
$0.70 $0.51 EPS including special items $1.88 $1.72
======= ======= ======= =======
(a) During 2005, the Company recorded $13 million in restructuring and
other special (charges) credits, net primarily related to
severance costs in connection with the Company's restructuring as
a result of its planned disposition of significant real estate
assets and transition costs associated with the Le Meridien
transaction. During the year ended December 31, 2004, the Company
reversed a $37 million reserve previously recorded through
restructuring and other special credits due to a favorable
judgment in a litigation matter.
(b) Represents adjustments to the Company's share of costs for
construction remediation efforts at a property owned by a vacation
ownership unconsolidated joint venture that were previously
recorded in 2002.
(c) For the three months ended December 31, 2005, primarily reflects
the gains recorded on the sale of three hotels offset by the
impairment of a hotel. For the year ended December 31, 2005, the
balance also includes the losses recorded on the sale of two
hotels and impairment charges associated with the Sheraton hotel
in Cancun, Mexico that is being partially demolished in order to
build vacation ownership units. Loss of $25 million and $33
million for the three and twelve months ended December 31, 2004,
respectively, reflects the loss on the sale or impairment of
hotels and investments offset, in part, by the gain on the sale of
one hotel.
(d) Represents taxes on special items at the Company's incremental tax
rate.
(e) Represents tax expense associated with the adoption of a plan to
repatriate foreign earnings in accordance with the American Jobs
Creation Act of 2004.
(f) During the three months and year ended December 31, 2005, the
Company recorded a tax charge of approximately $12 million and $52
million, respectively, to increase its tax reserves relating to
the Company's 1998 disposition of World Directories as a result of
a United States Tax Court decision against another taxpayer and
the deposit of these funds with the IRS. The three and twelve
months ended December 31, 2005 also include a net tax credit of
approximately $15 million related to the deferred gain on the sale
of the Hotel Danieli in Venice, Italy. The year ended December 31,
2005 also includes tax refunds of $8 million related to tax years
prior to the 1995 split-up of ITT Corporation. Tax benefits in the
three and twelve months ended December 31, 2004 reflect the
favorable results of certain changes to the Federal tax rules, the
resolution of various tax matters that were successfully settled
during these periods, and the reversal of tax reserves no longer
deemed necessary.
The Company has included the above supplemental information concerning special items to assist investors in analyzing Starwood's financial position and results of operations. The Company has chosen to provide this information to investors to enable them to perform meaningful comparisons of past, present and future operating results and as a means to emphasize the results of core on-going operations.
Starwood will be conducting a conference call to discuss the fourth quarter financial results at 10:30 a.m. (EST) today. The conference call will be available through simultaneous webcast in the Investor Relations/Press Releases section of the Company's website at www.starwoodhotels.com. A replay of the conference call will also be available from 12:30 p.m. (EST) today through Thursday, February 9 at 12:00 midnight (EST) on both the Company's website and via telephone replay at (719) 457-0820 (access code 3824292).
Definitions
All references to EPS, unless otherwise noted, reflect earnings per diluted share from continuing operations. All references to "net capital expenditures" mean gross capital expenditures for timeshare and fractional inventory net of cost of sales. EBITDA represents net income before interest expense, taxes, depreciation and amortization. The Company believes that EBITDA is a useful measure of the Company's operating performance due to the significance of the Company's long-lived assets and level of indebtedness. EBITDA is a commonly used measure of performance in its industry which, when considered with GAAP measures, the Company believes gives a more complete understanding of the Company's ability to service debt, fund capital expenditures, pay income taxes and pay cash distributions. It also facilitates comparisons between the Company and its competitors. The Company's management has historically adjusted EBITDA (i.e., "Adjusted EBITDA") when evaluating operating performance for the total Company as well as for individual properties or groups of properties because the Company believes that the inclusion or exclusion of certain recurring and non-recurring items, such as the special items described on page 9 of this release and/or revenues and costs and expenses from hotels sold, is necessary to provide the most accurate measure of core operating results and as a means to evaluate comparative results. The Company's management also used Adjusted EBITDA as a measure in determining the value of acquisitions and dispositions and it is used in the annual budget process. Due to guidance from the Securities and Exchange Commission, the Company now does not reflect such items when calculating EBITDA; however, the Company continues to adjust for these special items and refers to this measure as Adjusted EBITDA. The Company has historically reported this measure to its investors and believes that the continued inclusion of Adjusted EBITDA provides consistency in its financial reporting and enables investors to perform more meaningful comparisons of past, present and future operating results and provides a means to evaluate the results of its core on-going operations. EBITDA and Adjusted EBITDA are not intended to represent cash flow from operations as defined by GAAP and such metrics should not be considered as an alternative to net income, cash flow from operations or any other performance measure prescribed by GAAP. The Company's calculation of EBITDA and Adjusted EBITDA may be different from the calculations used by other companies and, therefore, comparability may be limited.
All references to Same-Store Owned Hotels reflect the Company's owned, leased and consolidated joint venture hotels, excluding hotels sold to date, undergoing significant repositionings or for which comparable results are not available (i.e., hotels not owned during the entire periods presented or closed due to seasonality or hurricane damage.) REVPAR is defined as revenue per available room. ADR is defined as average daily rate.
All references to contract sales reflect vacation ownership sales before revenue adjustments for percentage of completion accounting methodology.
All references to third-party management and franchise fees represent base and incentive fees as well as termination fees and payments by Starwood under performance and other guarantees.
Starwood Hotels & Resorts Worldwide, Inc. is one of the leading hotel and leisure companies in the world with approximately 850 properties in more than 95 countries and 145,000 employees at its owned and managed properties. Starwood(R) Hotels is a fully integrated owner, operator and franchisor of hotels and resorts with the following internationally renowned brands: St. Regis(R), The Luxury Collection(R), Sheraton(R), Westin(R), Four Points(R) by Sheraton, W(R), Le Meridien(R) and the recently announced aloft(SM). Starwood Hotels also owns Starwood Vacation Ownership, Inc., one of the premier developers and operators of high quality vacation interval ownership resorts. For more information, please visit .
Note: This press release contains forward-looking statements within the meaning of federal securities regulations. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties and other factors that may cause actual results to differ materially from those anticipated at the time the forward-looking statements are made. Further results, performance and achievements may be affected by general economic conditions including the prospects for improved performance internationally, the impact of war and terrorist activity, business and financing conditions, foreign exchange fluctuations, cyclicality of the real estate and the hotel and vacation ownership businesses, operating risks associated with the hotel and vacation ownership businesses, relationships with associates and labor unions, customers and property owners, the impact of the internet reservation channels, our reliance on technology, domestic and international political and geopolitical conditions, competition, governmental and regulatory actions (including the impact of changes in U.S. and foreign tax laws and their interpretation), travelers' fears of exposure to contagious diseases, risk associated with the level of our indebtedness, risk associated with potential acquisitions and dispositions, and other circumstances and uncertainties. These risks and uncertainties are presented in detail in our filings with the Securities and Exchange Commission. Although we believe the expectations reflected in such forward-looking statements are based upon reasonable assumptions, we can give no assurance that our expectations will be attained or that results will not materially differ. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
(In millions, except per Share data)
Three Months Ended Year Ended
December 31, December 31,
------------------------ -------------------------
% %
2005 2004 Variance 2005 2004 Variance
------- ------- -------- ------- ------- ---------
Revenues
Owned, leased and
consolidated joint
$894 $878 1.8 venture hotels $3,517 $3,326 5.7
Vacation ownership
and residential
192 197 (2.5) sales and services 889 640 38.9
Management fees,
franchise fees and
152 120 26.7 other income 501 419 19.6
Other revenues from
managed and
franchised
278 247 12.6 properties (a) 1,070 983 8.9
------- ------- -------- ------- ------- ---------
1,516 1,442 5.1 5,977 5,368 11.3
Costs and Expenses
Owned, leased and
consolidated joint
672 655 (2.6) venture hotels 2,634 2,519 (4.6)
Vacation ownership
158 154 (2.6) and residential 661 488 (35.5)
Selling, general,
administrative and
96 87 (10.3) other 370 331 (11.8)
Restructuring and
other special
charges (credits),
13 – n/m net 13 (37) n/m
82 107 23.4 Depreciation 387 413 6.3
7 5 (40.0) Amortization 20 18 (11.1)
Other expenses from
managed and
franchised
278 247 (12.6) properties (a) 1,070 983 (8.9)
------- ------- -------- ------- ------- ---------
1,306 1,255 (4.1) 5,155 4,715 (9.3)
210 187 12.3 Operating income 822 653 25.9
Gain on sale of VOI
25 3 n/m notes receivable 25 14 78.6
Equity earnings
from
unconsolidated
24 10 n/m ventures, net 64 32 100.0
Interest expense,
net of interest
income of $8, $1,
(58) (61) 4.9 $19 and $3 (239) (254) 5.9
Gain (loss) on
asset dispositions
and impairments,
2 (25) n/m net (30) (33) 9.1
------- ------- -------- ------- ------- ---------
Income from
continuing
operations before
taxes and minority
203 114 78.1 equity 642 412 55.8
(44) (2) n/m Income tax expense (172) (43) n/m
Tax expense on
repatriation of
– - – foreign earnings (47) - n/m
Minority equity in
– (1) 100.0 net (income) loss – -- –
------- ------- -------- ------- ------- ---------
Income from
continuing
159 111 43.2 operations 423 369 14.6
Discontinued
operations:
Loss from
– - – operations (b) (1) - n/m
Gain (loss) on
– (11) 100.0 disposition (c) – 26 (100.0)
------- ------- -------- ------- ------- ---------
$159 $100 59.0 Net income $422 $395 6.8
======= ======= ======== ======= ======= =========
Earnings Per Share
- Basic
Continuing
$0.72 $0.53 35.8 operations $1.95 $1.78 9.6
Discontinued
– (0.05) 100.0 operations – 0.13 (100.0)
------- ------- -------- ------- ------- ---------
$0.72 $0.48 50.0 Net income $1.95 $1.91 2.1
======= ======= ======== ======= ======= =========
Earnings Per Share
- Diluted
Continuing
$0.70 $0.51 37.3 operations $1.88 $1.72 9.3
Discontinued
– (0.05) 100.0 operations – 0.12 (100.0)
------- ------- -------- ------- ------- ---------
$0.70 $0.46 52.2 Net income $1.88 $1.84 2.2
======= ======= ======== ======= ======= =========
Weighted average
219 208 number of Shares 217 207
======= ======= ======= =======
Weighted average
number of Shares
228 217 assuming dilution 225 215
======= ======= ======= =======
(a) The Company includes in revenues the reimbursement of costs
incurred on behalf of managed hotel property owners and
franchisees with no added margin and includes in costs and
expenses these reimbursed costs. These costs relate primarily
to payroll costs at managed properties where the Company is
the employer.
(b) 2005 activity primarily represents a sales and use tax
assessment related to the Company's gaming business disposed
of in 1999 for periods prior to its disposition.
(c) 2004 activity represents the reversal of reserves that are no
longer required as the related contingencies have been
resolved and the favorable resolution of certain tax matters
related to the 1999 divestiture of the Company's gaming
business.
n/m = not meaningful
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
CONSOLIDATED BALANCE SHEETS
(in millions, except share data)
December 31, December 31,
2005 2004
------------ ------------
Assets
Current assets:
Cash and cash equivalents $897 $326
Restricted cash 295 347
Accounts receivable, net of allowance for
doubtful accounts of $50 and $58 642 482
Inventories 280 371
Prepaid expenses and other 169 157
------------ ------------
Total current assets 2,283 1,683
Investments 403 453
Plant, property and equipment, net 3,956 4,341
Assets held for sale (a) 2,614 2,656
Goodwill and intangible assets, net 2,796 2,544
Other assets (b) 402 621
------------ ------------
$12,454 $12,298
============ ============
Liabilities and Stockholders' Equity
Current liabilities:
Short-term borrowings and current
maturities of long-term debt (c) $1,219 $617
Accounts payable 156 200
Accrued expenses 1,049 867
Accrued salaries, wages and benefits 297 299
Accrued taxes and other 140 143
------------ ------------
Total current liabilities 2,861 2,126
Long-term debt (c) 2,226 2,661
Long-term debt held for sale (d) 700 1,164
Deferred income taxes 563 880
Other liabilities 851 652
------------ ------------
7,201 7,483
Minority interest 25 27
Commitments and contingencies
Stockholders' equity:
Class A exchangeable preferred shares of
the Trust; $0.01 par value; authorized
30,000,000 shares; outstanding 562,222
and 597,825 shares at December 31, 2005
and December 31, 2004, respectively – -
Corporation common stock; $0.01 par
value; authorized 1,050,000,000 shares;
outstanding 217,218,781 and 208,730,800
shares at December 31, 2005 and December
31, 2004, respectively 2 2
Trust Class B shares of beneficial
interest; $0.01 par value; authorized
1,000,000,000 shares; outstanding
217,218,781 and 208,730,800 shares at
December 31, 2005 and December 31, 2004,
respectively 2 2
Additional paid-in capital 5,429 5,121
Deferred compensation (53) (14)
Accumulated other comprehensive loss (322) (255)
Retained earnings (accumulated deficit) 170 (68)
------------ ------------
Total stockholders' equity 5,228 4,788
------------ ------------
$12,454 $12,298
============ ============
(a) Includes 38 hotels expected to be sold in connection with the
definitive agreement signed on November 14, 2005 with Host
Marriott Corporation as well as three additional hotels which
had signed definitive agreements at December 31, 2005 and
which were later sold in January 2006.
(b) Includes restricted cash of $12 million and $10 million at
December 31, 2005 and 2004, respectively.
(c) Excludes Starwood's share of unconsolidated joint venture debt
aggregating approximately $469 million and $438 million at
December 31, 2005 and 2004, respectively.
(d) Represents the debt that is expected to be assumed by Host
Marriott Corporation in connection with the definitive
agreement signed on November 14, 2005.
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Non-GAAP to GAAP Reconciliations - Historical Data
(in millions)
Three Months Ended Year Ended
December 31, December 31,
------------------------- -------------------------
% %
2005 2004 Variance 2005 2004 Variance
------- ------- --------- ------- ------- ---------
Reconciliation of
Net Income to
EBITDA and
Adjusted EBITDA
$159 $100 59.0 Net income $422 $395 6.8
Interest
76 66 15.2 expense(a) 283 275 2.9
Income tax
44 26 69.2 expense(b) 218 34 n/m
93 115 (19.1) Depreciation(c) 423 445 (4.9)
8 8 – Amortization (d) 26 26 –
------- ------- --------- ------- ------- ---------
380 315 20.6 EBITDA 1,372 1,175 16.8
Adjustment to
costs associated
with construction
– - – remediation – (4) 100.0
(Gain) loss on
asset
dispositions and
(2) 25 n/m impairments, net 30 33 9.1
Restructuring and
other special
charges
13 – n/m (credits), net 13 (37) n/m
Discontinued
– (13) 100.0 operations(e) 2 (17) n/m
------- ------- --------- ------- ------- ---------
$391 $327 19.6 Adjusted EBITDA $1,417 $1,150 23.2
======= ======= ========= ======= ======= =========
(a) Includes $10 million and $4 million of interest expense related to
unconsolidated joint ventures for the three months ended December
31, 2005 and 2004, respectively, and $25 million and $18 million
for the year ended December 31, 2005 and 2004, respectively.
(b) Includes $0 million and $24 million of tax expense (benefit)
recorded in discontinued operations for the three months ended
December 31, 2005 and 2004, respectively, and $(1) million and
$(9) million for the year ended December 31, 2005 and 2004,
respectively. Also includes $47 million of tax expense on the
repatriation of foreign earnings for the year ended December 31,
2005.
(c) Includes $11 million and $8 million of Starwood's share of
depreciation expense of unconsolidated joint ventures for the
three months ended December 31, 2005 and 2004, respectively, and
$36 million and $32 million for the year ended December 31, 2005
and 2004, respectively.
(d) Includes $1 million and $3 million of Starwood's share of
amortization expense of unconsolidated joint ventures for the
three months ended December 31, 2005 and 2004, respectively, and
$6 million and $8 million for the year ended December 31, 2005 and
2004, respectively.
(e) Excludes the taxes already added back as noted in (b) above.
Three Months
Ended Year Ended
December 31, December 31,
--------------- ---------------
2005 2004 2005 2004
------- ------- ------- -------
Cash Flow Data
$159 $100 Net income $422 $395
Discontinued operations:
– 11 Gain on dispositions – (26)
Other adjustments relating to
10 – discontinued operations 11 1
(47) (60) (Increase) decrease in restricted cash 50 (257)
Adjustments to income from continuing
operations, changes in working
(176) 150 capital, and other 281 465
------- ------- ------- -------
Cash from (used for) operating
$(54) $201 activities $764 $578
======= ======= ======= =======
Cash from (used for) investing
$339 $(91) activities $85 $(415)
======= ======= ======= =======
$(287) $(22) Cash used for financing activities $(253) $(273)
======= ======= ======= =======
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Non-GAAP to GAAP Reconciliations - Future Performance
(In millions)
Three Months Ended Year Ended
March 31, 2006 December 31, 2006
------------------ -----------------
Income from continuing
$64 operations(a) $455
66 Interest expense 178
14 Income tax expense 224
79 Depreciation and amortization 323
---------------- ----------------
223 EBITDA 1,180
15 Le Meridien transition costs 30
---------------- ----------------
$238 Adjusted EBITDA $1,210
================ ================
Three Months Ended Year Ended
March 31, 2006 December 31, 2006
------------------ ------------------
Income from continuing
$64 operations(a) $455
---------------- -----------------
$0.29 EPS $2.05
---------------- -----------------
Special Items
15 Le Meridien transition costs 30
---------------- -----------------
15 Total special items - pre-tax 30
Income tax (benefit) expense on
(5) special items (10)
---------------- -----------------
10 Total special items - after-tax 20
---------------- -----------------
Income from continuing operations
$74 excluding special items $475
---------------- -----------------
$0.33 EPS excluding special items $2.14
================ =================
(a) The Company expects to realize significant income tax benefits and
certain one-time financing costs in connection with the pending
transaction with Host Marriott Corporation which will be recorded
at the time that the transaction is approved by Host Marriott
Corporation's shareholders and/or the transaction is consummated.
At this time, these benefits and costs cannot be quantified and
are therefore not included in the above estimates of future
performance.
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Non-GAAP to GAAP Reconciliations - Future Performance (continued)
(In millions)
Reconciliation from Previous Guidance to Current Guidance
Previous 2006 EBITDA guidance $1,250
Plus: Expected first quarter results from hotels being sold
to Host Marriott
Revenues 292
Expenses (222)
Fees and other income (26)
Less: Expected results from additional asset sales
Revenues (153)
Expenses 106
Fees and other income 3
Less: Stock option expense (45)
---------
Adjusted previous 2006 EBITDA guidance $1,205
---------
Current 2006 EBITDA guidance $1,210
=========
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Non-GAAP to GAAP Reconciliations -
Same Store Owned Hotel Revenue and Expenses
(In millions)
Three Months Ended Year Ended
December 31, December 31,
------------------------ ------------------------
Same-Store Owned
% Hotels (1) %
2005 2004 Variance Worldwide 2005 2004 Variance
------- ------- -------- ------- ------- --------
Revenue
Same-Store Owned
$843 $791 6.6 Hotels $3,183 $2,943 8.2
Hotels Sold or
Closed in 2005
and 2004 (12
18 43 (58.1) hotels) 123 168 (26.8)
Hotels Without
Comparable
Results (11
33 44 (25.0) hotels) 205 209 (1.9)
Other ancillary
– -- – hotel operations 6 6 –
------- ------- -------- ------- ------- --------
Total Owned, Leased
and Consolidated
Joint Venture
$894 $878 1.8 Hotels Revenue $3,517 $3,326 5.7
======= ======= ======== ======= ======= ========
Costs and Expenses
Same-Store Owned
$620 $587 (5.6) Hotels $2,374 $2,231 (6.4)
Hotels Sold or
Closed in 2005
and 2004 (12
15 33 54.5 hotels) 91 129 29.5
Hotels Without
Comparable
Results
37 35 (5.7) (11 hotels) 165 155 (6.5)
Other ancillary
– -- – hotel operations 4 4 –
------- ------- -------- ------- ------- --------
Total Owned, Leased
and Consolidated
Joint Venture
Hotels Costs and
$672 $655 (2.6) Expenses $2,634 $2,519 (4.6)
======= ======= ======== ======= ======= ========
Three Months Ended Year Ended
December 31, December 31,
------------------------ ------------------------
Same-Store Owned
% Hotels %
2005 2004 Variance North America 2005 2004 Variance
------- ------- -------- ------- ------- --------
Revenue
Same-Store Owned
$626 $573 9.2 Hotels $2,306 $2,128 8.4
Hotels Sold or
Closed in 2005
and 2004 (10
11 32 (65.6) hotels) 86 118 (27.1)
Hotels Without
Comparable
Results (9
32 37 (13.5) hotels) 178 177 0.6
------- ------- -------- ------- ------- --------
Total Owned, Leased
and Consolidated
Joint Venture
$669 $642 4.2 Hotels Revenue $2,570 $2,423 6.1
======= ======= ======== ======= ======= ========
Costs and Expenses
Same-Store Owned
$453 $423 (7.1) Hotels $1,709 $1,612 (6.0)
Hotels Sold or
Closed in 2005
and 2004 (10
10 25 60.0 hotels) 68 95 28.4
Hotels Without
Comparable
Results (9
33 28 (17.9) hotels) 145 130 (11.5)
------- ------- -------- ------- ------- --------
Total Owned, Leased
and Consolidated
Joint Venture
Hotels Costs and
$496 $476 (4.2) Expenses $1,922 $1,837 (4.6)
======= ======= ======== ======= ======= ========
Three Months Ended Year Ended
December 31, December 31,
------------------------ ------------------------
Same-Store Owned
% Hotels %
2005 2004 Variance International 2005 2004 Variance
------- ------- -------- ------- ------- --------
Revenue
Same-Store Owned
$217 $218 (0.5) Hotels $877 $815 7.6
Hotels Sold or
Closed in 2005
and 2004 (2
7 11 (36.4) hotels) 37 50 (26.0)
Hotels Without
Comparable
Results (2
1 7 (85.7) hotels) 27 32 (15.6)
Other ancillary
hotel
– -- – operations 6 6 –
------- ------- -------- ------- ------- --------
Total Owned, Leased
and Consolidated
Joint Venture
$225 $236 (4.7) Hotels Revenue $947 $903 4.9
======= ======= ======== ======= ======= ========
Costs and Expenses
Same-Store Owned
$167 $164 (1.8) Hotels $665 $619 (7.4)
Hotels Sold or
Closed in 2005
and 2004 (2
5 8 37.5 hotels) 23 34 32.4
Hotels Without
Comparable
Results (2
4 7 42.9 hotels) 20 25 20.0
Other ancillary
hotel
– -- – operations 4 4 –
------- ------- -------- ------- ------- --------
Total Owned, Leased
and Consolidated
Joint Venture
Hotels Costs and
$176 $179 1.7 Expenses $712 $682 (4.4)
======= ======= ======== ======= ======= ========
(1) Same-Store Owned Hotel Results exclude 12 hotels sold or closed in
2005 and 2004 and 11 hotels without comparable results.
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Hotel Results - Same Store Owned Hotels (1)
For the Three Months Ended
December 31, 2005
UNAUDITED
WORLDWIDE NORTH AMERICA
--------------------- ---------------------
2005 2004 Var. 2005 2004 Var.
------- ------- ----- ------- ------- -----
120 Hotels 79 Hotels
--------------------- ---------------------
SAME STORE OWNED HOTELS
REVPAR ($) 125.47 114.71 9.4% 127.76 113.88 12.2%
ADR ($) 182.91 170.96 7.0% 184.65 168.64 9.5%
OCCUPANCY (%) 68.6% 67.1% 1.5 69.2% 67.5% 1.7
53 31
--------------------- ---------------------
SHERATON
REVPAR ($) 104.79 96.84 8.2% 112.40 100.64 11.7%
ADR ($) 156.65 146.25 7.1% 166.57 151.15 10.2%
OCCUPANCY (%) 66.9% 66.2% 0.7 67.5% 66.6% 0.9
32 19
--------------------- ---------------------
WESTIN
REVPAR ($) 127.00 117.15 8.4% 113.60 102.84 10.5%
ADR ($) 178.58 170.22 4.9% 158.09 146.48 7.9%
OCCUPANCY (%) 71.1% 68.8% 2.3 71.9% 70.2% 1.7
8 3
--------------------- ---------------------
ST. REGIS/LUXURY COLLECTION
REVPAR ($) 281.35 267.32 5.2% 302.16 274.02 10.3%
ADR ($) 423.33 407.20 4.0% 431.18 393.67 9.5%
OCCUPANCY (%) 66.5% 65.6% 0.9 70.1% 69.6% 0.5
10 10
--------------------- ---------------------
W
REVPAR ($) 216.92 182.51 18.9% 216.92 182.51 18.9%
ADR ($) 288.09 252.92 13.9% 288.09 252.92 13.9%
OCCUPANCY (%) 75.3% 72.2% 3.1 75.3% 72.2% 3.1
17 16
--------------------- ---------------------
OTHER
REVPAR ($) 85.76 77.22 11.1% 80.45 71.79 12.1%
ADR ($) 131.56 122.95 7.0% 128.47 121.93 5.4%
OCCUPANCY (%) 65.2% 62.8% 2.4 62.6% 58.9% 3.7
INTERNATIONAL(2)
--------------------------
2005 2004 Var.
--------- --------- ------
41 Hotels
--------------------------
SAME STORE OWNED HOTELS
REVPAR ($) 118.84 117.11 1.5%
ADR ($) 177.68 177.82 (0.1%)
OCCUPANCY (%) 66.9% 65.9% 1.0
22
--------------------------
SHERATON
REVPAR ($) 89.50 89.30 0.2%
ADR ($) 136.18 136.33 (0.1%)
OCCUPANCY (%) 65.7% 65.5% 0.2
13
--------------------------
WESTIN
REVPAR ($) 173.21 165.78 4.5%
ADR ($) 252.65 258.61 (2.3%)
OCCUPANCY (%) 68.6% 64.1% 4.5
5
--------------------------
ST. REGIS/LUXURY COLLECTION
REVPAR ($) 239.54 253.10 (5.4%)
ADR ($) 404.66 442.10 (8.5%)
OCCUPANCY (%) 59.2% 57.2% 2.0
W
REVPAR ($)
ADR ($)
OCCUPANCY (%)
1
--------------------------
OTHER
REVPAR ($) 116.50 108.71 7.2%
ADR ($) 145.55 127.01 14.6%
OCCUPANCY (%) 80.0% 85.6% (5.6)
(1) Hotel Results exclude 12 hotels sold or closed and 10 hotels
without comparable results during 2004 & 2005
(2) See next page for breakdown by division
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Hotel Results - Same Store Owned Hotels (1)
For the Three Months Ended
December 31, 2005
UNAUDITED
EUROPE LATIN AMERICA
---------------------- ---------------------
2005 2004 Var. 2005 2004 Var.
------- ------- ------ ------- ------- -----
27 Hotels 10 Hotels
---------------------- ---------------------
SAME STORE OWNED HOTELS
REVPAR ($) 152.06 149.67 1.6% 75.78 69.40 9.2%
ADR ($) 223.29 235.59 (5.2%) 116.66 108.05 8.0%
OCCUPANCY (%) 68.1% 63.5% 4.6 65.0% 64.2% 0.8
11 8
---------------------- ---------------------
SHERATON
REVPAR ($) 111.81 108.82 2.7% 67.20 62.80 7.0%
ADR ($) 159.23 165.06 (3.5%) 105.40 100.00 5.4%
OCCUPANCY (%) 70.2% 65.9% 4.3 63.8% 62.8% 1.0
11 2
---------------------- ---------------------
WESTIN
REVPAR ($) 182.88 178.02 2.7% 131.89 112.67 17.1%
ADR ($) 270.70 287.51 (5.8%) 181.12 153.09 18.3%
OCCUPANCY (%) 67.6% 61.9% 5.7 72.8% 73.6% (0.8)
5
----------------------
ST. REGIS/LUXURY
COLLECTION
REVPAR ($) 239.54 253.10 (5.4%)
ADR ($) 404.66 442.10 (8.5%)
OCCUPANCY (%) 59.2% 57.2% 2.0
OTHER
REVPAR ($)
ADR ($)
OCCUPANCY (%)
ASIA PACIFIC
------------------------
2005 2004 Var.
-------- ------- -------
4 Hotels
------------------------
SAME STORE OWNED HOTELS
REVPAR ($) 106.13 116.00 (8.5%)
ADR ($) 157.81 148.81 6.0%
OCCUPANCY (%) 67.3% 77.9% (10.6)
3
------------------------
SHERATON
REVPAR ($) 99.78 120.46 (17.2%)
ADR ($) 167.94 164.42 2.1%
OCCUPANCY (%) 59.4% 73.3% (13.9)
WESTIN
REVPAR ($)
ADR ($)
OCCUPANCY (%)
ST. REGIS/LUXURY COLLECTION
REVPAR ($)
ADR ($)
OCCUPANCY (%)
1
------------------------
OTHER
REVPAR ($) 116.50 108.71 7.2%
ADR ($) 145.55 127.01 14.6%
OCCUPANCY (%) 80.0% 85.6% (5.6)
(1) Hotel Results exclude 12 hotels sold or closed and 10 hotels
without comparable results during 2004 & 2005
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Hotel Results - Same Store Owned Hotels (1)
For the Three Months Ended
December 31, 2005
UNAUDITED ($ thousands except variances)
WORLDWIDE(3) NORTH AMERICA(3)
------------------------ ------------------------
2005 2004 Var. 2005 2004 Var.
-------- -------- ------ -------- -------- ------
120 Hotels 79 Hotels
------------------------ ------------------------
SAME STORE OWNED
HOTELS
Total REVENUE 843,362 790,804 6.6% 626,213 573,282 9.2%
Total EXPENSE 619,892 586,557 (5.7%) 453,094 422,443 (7.3%)
53 31
------------------------ ------------------------
SHERATON
REVENUE 343,286 325,359 5.5% 235,059 216,099 8.8%
EXPENSE 245,877 234,829 (4.7%) 166,790 157,006 (6.2%)
32 19
------------------------ ------------------------
WESTIN
REVENUE 250,486 233,374 7.3% 171,737 156,058 10.0%
EXPENSE 188,406 176,458 (6.8%) 126,031 115,699 (8.9%)
8 3
------------------------ ------------------------
ST. REGIS/LUXURY
COLLECTION
REVENUE 90,317 89,507 0.9% 69,561 67,464 3.1%
EXPENSE 67,009 65,729 (1.9%) 50,088 48,575 (3.1%)
10 10
------------------------ ------------------------
W(3)
REVENUE 106,427 94,149 13.0% 106,427 94,149 13.0%
EXPENSE 75,083 68,847 (9.1%) 75,083 68,847 (9.1%)
17 16
------------------------ ------------------------
OTHER
REVENUE 52,846 48,415 9.2% 43,429 39,512 9.9%
EXPENSE 43,517 40,694 (6.9%) 35,102 32,315 (8.6%)
INTERNATIONAL(2)
------------------------
2005 2004 Var.
-------- -------- ------
41 Hotels
------------------------
SAME STORE OWNED HOTELS
Total REVENUE 217,149 217,522 (0.2%)
Total EXPENSE 166,798 164,115 (1.6%)
22
------------------------
SHERATON
REVENUE 108,227 109,260 (0.9%)
EXPENSE 79,087 77,823 (1.6%)
13
------------------------
WESTIN
REVENUE 78,749 77,316 1.9%
EXPENSE 62,375 60,759 (2.7%)
5
------------------------
ST. REGIS/LUXURY COLLECTION
REVENUE 20,756 22,043 (5.8%)
EXPENSE 16,921 17,154 1.4%
W(3)
REVENUE
EXPENSE
1
------------------------
OTHER
REVENUE 9,417 8,903 5.8%
EXPENSE 8,415 8,379 (0.4%)
(1) Hotel Results exclude 12 hotels sold or closed and 10 hotels
without comparable results during 2004 & 2005
(2) See next page for breakdown by division
(3)Includes lease expense of $4,288 in 2005 and 2004 related to the
lease of the W Times Square in New York
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Hotel Results - Same Store Owned Hotels (1)
For the Three Months Ended
December 31, 2005
UNAUDITED ($ thousands except variances)
EUROPE LATIN AMERICA
------------------------ ------------------------
2005 2004 Var. 2005 2004 Var.
-------- -------- ------ -------- ------- -------
27 Hotels 10 Hotels
------------------------ ------------------------
SAME STORE OWNED
HOTELS
Total REVENUE 139,185 142,980 (2.7%) 50,249 44,982 11.7%
Total EXPENSE 112,340 113,978 1.4% 33,143 28,105 (17.9%)
11 8
------------------------ ------------------------
SHERATON
REVENUE 52,783 54,465 (3.1%) 37,146 34,138 8.8%
EXPENSE 42,124 43,569 3.3% 24,063 20,601 (16.8%)
11 2
------------------------ ------------------------
WESTIN
REVENUE 65,646 66,472 (1.2%) 13,103 10,844 20.8%
EXPENSE 53,295 53,255 (0.1%) 9,080 7,504 (21.0%)
5
------------------------
ST. REGIS/LUXURY
COLLECTION
REVENUE 20,756 22,043 (5.8%)
EXPENSE 16,921 17,154 1.4%
OTHER
REVENUE
EXPENSE
ASIA PACIFIC
------------------------
2005 2004 Var.
-------- ------- -------
4 Hotels
------------------------
SAME STORE OWNED
HOTELS
Total REVENUE 27,715 29,560 (6.2%)
Total EXPENSE 21,315 22,032 3.3%
3
------------------------
SHERATON
REVENUE 18,298 20,657 (11.4%)
EXPENSE 12,900 13,653 5.5%
WESTIN
REVENUE
EXPENSE
ST. REGIS/LUXURY
COLLECTION
REVENUE
EXPENSE
1
------------------------
OTHER
REVENUE 9,417 8,903 5.8%
EXPENSE 8,415 8,379 (0.4%)
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Hotel Results - Same Store Owned Hotels (1)
For the Twelve Months Ended December 31, 2005
UNAUDITED
WORLDWIDE NORTH AMERICA
--------------------- ---------------------
2005 2004 Var. 2005 2004 Var.
------- ------- ----- ------- ------- -----
119 Hotels 78 Hotels
--------------------- ---------------------
SAME STORE OWNED HOTELS
REVPAR ($) 123.14 111.01 10.9% 123.02 110.13 11.7%
ADR ($) 174.70 162.50 7.5% 170.93 156.62 9.1%
OCCUPANCY (%) 70.5% 68.3% 2.2 72.0% 70.3% 1.7
52 30
--------------------- ---------------------
SHERATON
REVPAR ($) 99.98 91.51 9.3% 105.28 96.10 9.6%
ADR ($) 146.63 136.87 7.1% 150.58 137.48 9.5%
OCCUPANCY (%) 68.2% 66.9% 1.3 69.9% 69.9% 0.0
32 19
--------------------- ---------------------
WESTIN
REVPAR ($) 134.54 121.61 10.6% 118.64 107.21 10.7%
ADR ($) 182.34 170.88 6.7% 157.55 146.14 7.8%
OCCUPANCY (%) 73.8% 71.2% 2.6 75.3% 73.4% 1.9
8 3
--------------------- ---------------------
ST. REGIS/LUXURY
COLLECTION
REVPAR ($) 263.37 238.86 10.3% 265.64 232.63 14.2%
ADR ($) 397.36 386.67 2.8% 379.41 357.38 6.2%
OCCUPANCY (%) 66.3% 61.8% 4.5 70.0% 65.1% 4.9
10 10
--------------------- ---------------------
W
REVPAR ($) 195.65 164.23 19.1% 195.65 164.23 19.1%
ADR ($) 255.01 225.57 13.1% 255.01 225.57 13.1%
OCCUPANCY (%) 76.7% 72.8% 3.9 76.7% 72.8% 3.9
17 16
--------------------- ---------------------
OTHER
REVPAR ($) 88.71 79.80 11.2% 84.76 76.09 11.4%
ADR ($) 128.71 120.54 6.8% 126.27 120.42 4.9%
OCCUPANCY (%) 68.9% 66.2% 2.7 67.1% 63.2% 3.9
INTERNATIONAL(2)
-----------------------
2005 2004 Var.
-------- ------- ------
41 Hotels
-----------------------
SAME STORE OWNED HOTELS
REVPAR ($) 123.48 113.48 8.8%
ADR ($) 186.30 181.21 2.8%
OCCUPANCY (%) 66.3% 62.6% 3.7
22
-----------------------
SHERATON
REVPAR ($) 89.72 82.65 8.6%
ADR ($) 138.36 135.52 2.1%
OCCUPANCY (%) 64.8% 61.0% 3.8
13
-----------------------
WESTIN
REVPAR ($) 188.20 169.67 10.9%
ADR ($) 274.08 265.81 3.1%
OCCUPANCY (%) 68.7% 63.8% 4.9
5
-----------------------
ST. REGIS/LUXURY COLLECTION
REVPAR ($) 258.80 252.06 2.7%
ADR ($) 440.48 460.58 (4.4%)
OCCUPANCY (%) 58.8% 54.7% 4.1
W
REVPAR ($)
ADR ($)
OCCUPANCY (%)
1
-----------------------
OTHER
REVPAR ($) 111.55 101.36 10.1%
ADR ($) 140.63 121.06 16.2%
OCCUPANCY (%) 79.3% 83.7% (4.4)
(1) Hotel Results exclude 12 hotels sold or closed and 11 hotels
without comparable results during 2004 & 2005
(2) See next page for breakdown by division
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Hotel Results - Same Store Owned Hotels (1)
For the Twelve Months Ended December 31, 2005
UNAUDITED
EUROPE LATIN AMERICA
---------------------- ---------------------
2005 2004 Var. 2005 2004 Var.
------- ------- ------ ------- ------- -----
27 Hotels 10 Hotels
---------------------- ---------------------
SAME STORE OWNED HOTELS
REVPAR ($) 162.98 151.12 7.8% 68.90 59.54 15.7%
ADR ($) 242.29 240.26 0.8% 110.65 105.00 5.4%
OCCUPANCY (%) 67.3% 62.9% 4.4 62.3% 56.7% 5.6
11 8
---------------------- ---------------------
SHERATON
REVPAR ($) 115.27 107.09 7.6% 59.64 52.30 14.0%
ADR ($) 166.56 164.48 1.3% 99.27 96.17 3.2%
OCCUPANCY (%) 69.2% 65.1% 4.1 60.1% 54.4% 5.7
11 2
---------------------- ---------------------
WESTIN
REVPAR ($) 201.58 183.80 9.7% 129.57 107.00 21.1%
ADR ($) 301.54 296.40 1.7% 169.09 148.80 13.6%
OCCUPANCY (%) 66.8% 62.0% 4.8 76.6% 71.9% 4.7
5
----------------------
ST. REGIS/LUXURY
COLLECTION
REVPAR ($) 258.80 252.06 2.7%
ADR ($) 440.48 460.58 (4.4%)
OCCUPANCY (%) 58.8% 54.7% 4.1
OTHER
REVPAR ($)
ADR ($)
OCCUPANCY (%)
ASIA PACIFIC
----------------------
2005 2004 Var.
-------- ------- -----
4 Hotels
----------------------
SAME STORE OWNED HOTELS
REVPAR ($) 113.99 107.92 5.6%
ADR ($) 157.64 142.48 10.6%
OCCUPANCY (%) 72.3% 75.7% (3.4)
3
----------------------
SHERATON
REVPAR ($) 115.49 111.95 3.2%
ADR ($) 169.79 158.00 7.5%
OCCUPANCY (%) 68.0% 70.9% (2.9)
WESTIN
REVPAR ($)
ADR ($)
OCCUPANCY (%)
ST. REGIS/LUXURY COLLECTION
REVPAR ($)
ADR ($)
OCCUPANCY (%)
1
----------------------
OTHER
REVPAR ($) 111.55 101.36 10.1%
ADR ($) 140.63 121.06 16.2%
OCCUPANCY (%) 79.3% 83.7% (4.4)
(1) Hotel Results exclude 12 hotels sold or closed and 11 hotels
without comparable results during 2004 & 2005
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Hotel Results - Same Store Owned Hotels (1)
For the Twelve Months Ended December 31, 2005
UNAUDITED ($ thousands except variances)
WORLDWIDE(3) NORTH AMERICA(3)
---------------------------- ----------------------------
2005 2004 Var. 2005 2004 Var.
---------- ---------- ------ ---------- ---------- ------
119 Hotels 78 Hotels
---------------------------- ----------------------------
SAME STORE
OWNED HOTELS
Total
REVENUE 3,183,144 2,942,769 8.2% 2,306,326 2,128,197 8.4%
Total
EXPENSE 2,374,355 2,231,127 (6.4%) 1,709,386 1,611,571 (6.1%)
52 30
---------------------------- ----------------------------
SHERATON
REVENUE 1,244,041 1,172,115 6.1% 822,021 780,581 5.3%
EXPENSE 924,576 874,609 (5.7%) 608,518 584,921 (4.0%)
32 19
---------------------------- ----------------------------
WESTIN
REVENUE 1,015,265 926,911 9.5% 682,069 620,840 9.9%
EXPENSE 739,932 689,214 (7.4%) 490,782 456,523 (7.5%)
8 3
---------------------------- ----------------------------
ST. REGIS/
LUXURY
COLLECTION
REVENUE 326,581 311,603 4.8% 240,588 227,472 5.8%
EXPENSE 250,166 240,950 (3.8%) 182,914 174,349 (4.9%)
10 10
---------------------------- ----------------------------
W(3)
REVENUE 384,758 336,232 14.4% 384,758 336,232 14.4%
EXPENSE 286,329 264,972 (8.1%) 286,329 264,972 (8.1%)
17 16
---------------------------- ----------------------------
OTHER
REVENUE 212,499 195,908 8.5% 176,890 163,072 8.5%
EXPENSE 173,352 161,382 (7.4%) 140,844 130,806 (7.7%)
INTERNATIONAL(2)
------------------------
2005 2004 Var.
-------- -------- ------
41 Hotels
------------------------
SAME STORE OWNED HOTELS
Total REVENUE 876,818 814,572 7.6%
Total EXPENSE 664,968 619,556 (7.3%)
22
------------------------
SHERATON
REVENUE 422,020 391,534 7.8%
EXPENSE 316,058 289,688 (9.1%)
13
------------------------
WESTIN
REVENUE 333,196 306,071 8.9%
EXPENSE 249,150 232,691 (7.1%)
5
------------------------
ST. REGIS/LUXURY COLLECTION
REVENUE 85,993 84,131 2.2%
EXPENSE 67,252 66,601 (1.0%)
W(3)
REVENUE
EXPENSE
1
------------------------
OTHER
REVENUE 35,609 32,836 8.4%
EXPENSE 32,508 30,576 (6.3%)
(1) Hotel Results exclude 12 hotels sold or closed and 11 hotels
without comparable results during 2004 & 2005
(2) See next page for breakdown by division
(3) Includes lease expense of $17,150 in 2005 and 2004 related to the
lease of the W Times Square in New York
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Hotel Results - Same Store Owned Hotels (1)
For the Twelve Months Ended December 31, 2005
UNAUDITED ($ thousands except variances)
EUROPE LATIN AMERICA
------------------------ -------------------------
2005 2004 Var. 2005 2004 Var.
-------- -------- ------ -------- -------- -------
27 Hotels 10 Hotels
------------------------ -------------------------
SAME STORE OWNED
HOTELS
Total REVENUE 584,233 553,812 5.5% 178,015 152,504 16.7%
Total EXPENSE 460,449 437,671 (5.2%) 117,359 100,222 (17.1%)
11 8
------------------------ -------------------------
SHERATON
REVENUE 215,429 204,032 5.6% 127,630 112,082 13.9%
EXPENSE 174,660 164,877 (5.9%) 86,746 73,724 (17.7%)
11 2
------------------------ -------------------------
WESTIN
REVENUE 282,811 265,649 6.5% 50,385 40,422 24.6%
EXPENSE 218,537 206,193 (6.0%) 30,613 26,498 (15.5%)
5
------------------------
ST. REGIS/LUXURY
COLLECTION
REVENUE 85,993 84,131 2.2%
EXPENSE 67,252 66,601 (1.0%)
OTHER
REVENUE
EXPENSE
ASIA PACIFIC
------------------------
2005 2004 Var.
-------- -------- ------
4 Hotels
------------------------
SAME STORE OWNED HOTELS
Total REVENUE 114,570 108,256 5.8%
Total EXPENSE 87,160 81,663 (6.7%)
3
------------------------
SHERATON
REVENUE 78,961 75,420 4.7%
EXPENSE 54,652 51,087 (7.0%)
WESTIN
REVENUE
EXPENSE
ST. REGIS/LUXURY COLLECTION
REVENUE
EXPENSE
1
------------------------
OTHER
REVENUE 35,609 32,836 8.4%
EXPENSE 32,508 30,576 (6.3%)
(1) Hotel Results exclude 12 hotels sold or closed and 11 hotels
without comparable results during 2004 & 2005
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Debt Portfolio Summary
As of December 31, 2005
UNAUDITED
Avg
Interest Balance % of Interest Maturity
Debt Terms (in millions) Portfolio Rate (in years)
----------------- -------- ------------- --------- -------- ----------
Floating Rate
Debt:
Senior credit
facility
Revolving
credit Various
facility + 125 $11 0% 4.57% 0.8
Term loan LIBOR
+ 125 450 11% 5.64% 0.7
------------- --------- -------- ----------
461 11% 5.61% 0.7
Mortgages and
other Various 481 12% 4.05% 1.4
Interest rate LIBOR
swaps + 423 300 7% 8.77%
------------- --------- --------
Total Floating 1,242 30% 5.77% 1.0
Fixed Rate Debt:
Senior notes (1) 1,494 36% 6.70% 3.9
Convertible debt 360 9% 3.50% 4.0
Mortgages and
other 649 15% 7.07% 4.6
Interest rate
swaps (300) (7%) 7.88%
------------- --------- --------
Total Fixed 2,203 53% 6.14% 3.6
------------- --------- --------
Total $3,445 83% 6.01% 2.9
============= ========= ========
Floating rate
debt classified
as held for sale 25 1% 4.30% 4.0
Fixed rate debt
classified as
held for sale 675 16% 7.63% 12.3
------------- --------- --------
Total debt
classified as
held for sale $700 17% 7.50% 12.0
============= ========= ========
Total Debt $4,145 100% 6.27% 4.4
============= ========= ========
Maturities
------------------------------
less than 1 year $1,219
1-3 years 851
4-5 years 481
greater than 5 years 1,594
-------
$4,145
=======
------------------------------
(1) Balance consists of outstanding public debt of $1.497 billion and
a $19 million fair value adjustment related to the unamortized
gain on fixed to floating interest rate swaps terminated in
September 2002 and March 2004 and a ($22) million fair value
adjustment related to current fixed to floating interest rate
swaps.
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Hotels without Comparable Results & Other Selected Items
As of December 31, 2005
UNAUDITED ($ millions)
Properties without comparable results in 2005:
Property Location
-------- --------
St. Regis Aspen Aspen, CO
Sheraton Kauai Koloa, HI
Sheraton Cancun Cancun, Mexico
W New Orleans - French Quarter New Orleans, LA
Westin Regina Resort - Cancun Cancun, Mexico
W New Orleans New Orleans, LA
Westin Fort Lauderdale Fort Lauderdale, FL
Sheraton Bal Harbour Beach Resort Bal Harbour, FL
Sheraton Suites Key West Key West, FL
Paradise Streams Caesars Mt. Pocono, PA
St. Regis Hotel, San Francisco San Francisco, CA
Properties sold or closed in 2005 and 2004:
Property Location
-------- --------
Rancho Bernardo - Four Points Rancho Bernardo, CA
Sheraton Denver Tech Center Englewood, CO
Sheraton Lisboa Hotel & Towers Lisbon, Portugal
Deerfield Beach Hilton Ft. Lauderdale, FL
Raphael Hotel Chicago, IL
Sheraton Chapel Hill Hotel Chapel Hill, NC
St. Regis Washington, DC Washington, DC
Sheraton Russell Hotel New York, NY
Westin Philadelphia Philadelphia, PA
Westin Princeton at Forrestal Village Princeton, NJ
Hotel Danieli Venice, Italy
Sheraton Ft. Lauderdale Airport Hotel Dania, FL
Selected Balance Sheet and Cash Flow Items:
Cash and cash equivalents
(including restricted cash of $307 million) $1,204
Debt
(including debt classified as held for sale) $4,145
Revenues and Expenses Associated with Assets Sold in 2005 or Expected
to be Sold in the First Quarter of 2006 (1):
Q1 Q2 Q3 Q4 Full Year
--------------------------------------
Hotels Sold in 2005:
2005
Revenues $33 $39 $25 $15 $112
Expenses $27 $25 $17 $12 $81
2004
Revenues $34 $42 $38 $39 $153
Expenses $28 $30 $28 $30 $116
Hotels Classified as Held for Sale at December 31, 2005:
2005
Revenues $282 $358 $329 $351 $1,320
Expenses $225 $243 $232 $247 $947
2004
Revenues $279 $333 $299 $331 $1,242
Expenses $218 $231 $218 $236 $903
(1) Results consist of 10 hotels sold in 2005 and 41 hotels which are
classified as held for sale at December 31, 2005. These amounts
are included in the revenues and expenses from owned, leased and
consolidated joint venture hotels in 2005 and 2004.
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Capital Expenditures
For the Three and Twelve Months Ended December 31, 2005
UNAUDITED ($ millions)
Q4 YTD
------ -------
Capital Expenditures:
Owned, Leased and Consolidated Joint Venture Hotels 99 282
Corporate/IT 22 51
------ -------
Subtotal 121 333
Vacation Ownership Capital Expenditures:
Capital expenditures (includes land acquisitions) 7 95
Net capital expenditures for inventory (1) 1 (35)
------ -------
Subtotal 8 60
Development Capital 241 424
------ -------
Total Capital Expenditures 370 817
====== =======
(1) Represents gross inventory capital expenditures of $36 and $136 in
the three and twelve months ended December 31, 2005, respectively,
less cost of sales of $35 and $171 in the three and twelve months
ended December 31, 2005, respectively.
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Summary of Portfolio by Properties & Rooms
As of December 31, 2005
UNAUDITED
NAD EAME LAD
---------------- --------------- ---------------
Owned Hotels Rooms Hotels Rooms Hotels Rooms
------- -------- ------- ------- ------- -------
Sheraton 33 15,653 11 3,074 7 3,235
Westin 20 9,784 11 2,372 3 901
Four Points 6 1,153 - - - -
W 12 4,294 - - - -
Luxury Collection 1 654 4 405 2 320
St. Regis 4 919 1 161 - -
Other 11 2,611 - - - -
------- -------- ------- ------- ------- -------
Total Owned 87 35,068 27 6,012 12 4,456
Managed & UJV
Sheraton 41 20,565 72 21,254 12 2,230
Westin 36 19,950 8 2,302 - -
Four Points 1 475 7 1,019 2 263
W 5 904 - - 1 237
Luxury Collection 6 1,422 8 1,405 8 188
St. Regis 3 596 1 95 - -
Le Meridien 6 1,188 71 16,910 3 839
Other 2 2,705 - - - -
------- -------- ------- ------- ------- -------
Total Managed & UJV 100 47,805 167 42,985 26 3,757
Franchised
Sheraton 114 35,924 28 6,943 4 1,294
Westin 21 7,994 3 1,142 3 598
Four Points 87 15,247 11 1,482 9 1,350
Luxury Collection 1 249 12 1,354 - -
Le Meridien 3 982 11 3,820 - -
------- -------- ------- ------- ------- -------
Total Franchised 226 60,396 65 14,741 16 3,242
----------------------------------------------------------------------
Systemwide
Sheraton 188 72,142 111 31,271 23 6,759
Westin 77 37,728 22 5,816 6 1,499
Four Points 94 16,875 18 2,501 11 1,613
W 17 5,198 - - 1 237
Luxury Collection 8 2,325 24 3,164 10 508
St. Regis 7 1,515 2 256 - -
Le Meridien 9 2,170 82 20,730 3 839
Other 13 5,316 - - - -
------- -------- ------- ------- ------- -------
Total Systemwide 413 143,269 259 63,738 54 11,455
======= ======== ======= ======= ======= =======
----------------------------------------------------------------------
ASIA Total
--------------- ----------------
Owned Hotels Rooms Hotels Rooms
------- ------- ------- --------
Sheraton 3 1,028 54 22,990
Westin - - 34 13,057
Four Points 1 630 7 1,783
W - - 12 4,294
Luxury Collection - - 7 1,379
St. Regis - - 5 1,080
Other - - 11 2,611
------- ------- ------- --------
Total Owned 4 1,658 130 47,194
Managed & UJV
Sheraton 45 15,721 170 59,770
Westin 11 4,290 55 26,542
Four Points 2 387 12 2,144
W 2 353 8 1,494
Luxury Collection - - 22 3,015
St. Regis 2 591 6 1,282
Le Meridien 23 5,215 103 24,152
Other - - 2 2,705
------- ------- ------- --------
Total Managed & UJV 85 26,557 378 121,104
Franchised
Sheraton 19 7,086 165 51,247
Westin 5 1,226 32 10,960
Four Points 1 126 108 18,205
Luxury Collection - - 13 1,603
Le Meridien 5 2,774 19 7,576
------- ------- ------- --------
Total Franchised 30 11,212 337 89,591
----------------------------------------------------------------------
Systemwide
Sheraton 67 23,835 389 134,007
Westin 16 5,516 121 50,559
Four Points 4 1,143 127 22,132
W 2 353 20 5,788
Luxury Collection - - 42 5,997
St. Regis 2 591 11 2,362
Le Meridien 28 7,989 122 31,728
Other - - 13 5,316
------- ------- ------- --------
Total Systemwide 119 39,427 845 257,889
======= ======= ======= ========
----------------------------------------------------------------------
Alisa Rosenberg
914-640-5214
Starwood
