STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
(In millions, except per Share data)
Three Months Ended
March 31,
2002 2001
% Variance
-
-------- ---------- ----------
Revenues
Owned, leased and consolidated joint
venture hotels
$ 752 $ 865
(13.1)
Other hotel and leisure(a)...........
142 149
(4.7)
--------- ---------- ----------
--------- ---------- ----------
894 1,014 (11.8)
Other revenues from managed and
franchised properties(b).
202 195
3.6
--------- ---------- ----------
--------- ---------- ----------
1,096 1,209
(9.3)
--------- ---------- ----------
--------- ---------- ----------
Costs and Expenses
Owned, leased and consolidated joint
venture hotels
564 596
5.4
Selling, general, administrative and
other(c)
88 99
11.1
Restructuring and other special
credits, net
(2) (1) 100.0
Depreciation.........................
112 105
(6.7)
Amortization.........................
5 22
77.3
--------- ---------- ----------
--------- ---------- ----------
767 821
6.6
Other expenses from managed and franchised properties(b)
202 195 (3.6)
--------- ---------- ----------
969 1,016
4.6
--------- ---------- ----------
Operating income.....................
127 193
(34.2)
Interest expense, net of interest
income.............................
(80) (100) 20.0
Loss on asset dispositions, net......
(3) --
--
--------- ---------- ----------
44 93
(52.7)
Income tax expense...................
(13) (31) 58.1
Minority equity in net income........
1 --
--
---------- ----------
--------- ---------- ----------
Net income...........................$
32 $ 62 (48.4)
========= ========== ==========
========= ========== ==========
Earnings per Share-- basic...........$ 0.16
$ 0.31 (48.4)
========= ========== ==========
========= ========== ==========
Earnings per Share-- diluted.........$ 0.16
$ 0.30 (46.7)
=========
==========
========= ========== ==========
Weighted average number of Shares....
200 201
========= ==========
Weighted average number of Shares
assuming dilution..................
205 207
========= ==========
========= ==========
Reconciliation of Operating Income to
EBITDA(d)
Operating income.....................$
127 $ 193 (34.2)
Depreciation(e)......................
118 112
5.4
Amortization(e)......................
5 22
(77.3)
Interest expense of unconsolidated
joint ventures.....................
4 6
(33.3)
Interest income......................
-- 3
--
Restructuring and other special
credits, net.......................
(2) (1) (100.0)
Foreign exchange gain from Argentina.
(24) --
--
--------- ---------- ----------
EBITDA...............................$
228 $ 335 (31.9)
========= ========== ==========
(a) Other hotel and leisure revenues include management
and franchise
fees earned from third party
hotel owners, the Company's interest
in unconsolidated joint ventures
and the sale and financing of
VOIs.
(b) In accordance with a Financial Accounting Standards
Board staff
announcement, the Company has
included in revenues the
reimbursement of costs incurred
on behalf of managed hotel
property owners and franchisees
and included in costs and
expenses these reimbursed costs.
These costs relate primarily to
payroll costs at managed properties
where the Company is the
employer. Since the reimbursements
made are based upon costs
incurred with no added margin,
the adoption of this guidance has
no effect on operating income,
total or per Share net income,
cash flows or the financial
position of the Company.
(c) Selling, general, administrative and other expenses
includes the
cost of sales of VOIs and other
costs of vacation ownership
operations.
(d) EBITDA is defined as income before interest
expense, income tax
expense and depreciation and
amortization. Special items and
gains and losses from sales
of real estate and investments are
also excluded from EBITDA as
these items do not impact operating
results on a recurring basis.
Management considers EBITDA to be
one measure of the cash flows
from operations of the Company
before debt service that provides
a relevant basis for
comparison, and EBITDA is presented
to assist investors in
analyzing the performance of
the Company. This information should
not be considered as an alternative
to any measure of performance
as promulgated under accounting
principles generally accepted in
the United States, nor should
it be considered as an indicator of
the overall financial performance
of the Company. The Company's
calculation of EBITDA may be
different from the calculation used
by other companies and, therefore,
comparability may be limited.
(e) Includes Starwood's share of depreciation
and amortization
expense
of unconsolidated joint ventures.
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
UNAUDITED BALANCE SHEET INFORMATION
(In millions)
March 31, 2002
Total assets..........................................
$ 12,198
Cash and cash equivalents.............................
$ 174
Total debt(a).........................................
$ 5,566
Shares outstanding(b).................................
202
(a) Excludes Starwood's share of unconsolidated
joint venture debt
aggregating
approximately $311 million.
(b) Shares outstanding include partnership
units and exchangeable
preferred
shares.
STARWOOD HOTELS & RESORTS WORLDWIDE,
INC.
Hotel Results - Same Store (1)
For the Quarter Ended March 31, 2002
UNAUDITED
WORLDWIDE
NORTH AMERICA
---------
-------------
2002 2001 Var.
2002 2001 Var.
---- ---- ----
---- ---- ----
152 Hotels
111 Hotels
------------------------ ------------------------
------------------------ ------------------------
OWNED HOTELS
REVPAR ($) 91.47
109.20 -16.2% 93.94 110.86 -15.3%
ADR ($)
150.25 163.86 -8.3% 152.43
165.24 -7.8%
OCCUPANCY (%)60.9%
66.6% -5.8 61.6%
67.1% -5.5
66
43
------------------------ ------------------------
------------------------ ------------------------
SHERATON
REVPAR ($) 75.47
92.47 -18.4% 79.53 94.66
-16.0%
ADR ($)
129.65 143.34 -9.5% 134.22
146.26 -8.2%
OCCUPANCY (%)58.2%
64.5% -6.3 59.3%
64.7% -5.5
34
23
------------------------ ------------------------
------------------------ ------------------------
WESTIN
REVPAR ($) 103.80
121.97 -14.9% 100.99 118.41 -14.7%
ADR ($)
155.42 166.06 -6.4% 148.63
157.93 -5.9%
OCCUPANCY (%)66.8%
73.4% -6.7 68.0%
75.0% -7.0
11
5
------------------------ ------------------------
------------------------ ------------------------
LUXURY COLLECTION
REVPAR ($) 213.11
247.67 -14.0% 269.74 314.30 -14.2%
ADR ($)
332.73 348.64 -4.6% 403.35
415.75 -3.0%
OCCUPANCY (%)64.0%
71.0% -7.0 66.9%
75.6% -8.7
10
10
------------------------ ------------------------
------------------------ ------------------------
W
REVPAR ($) 121.29
147.99 -18.0% 121.29 147.99 -18.0%
ADR ($)
202.46 225.68 -10.3% 202.46
225.68 -10.3%
OCCUPANCY (%)59.9%
65.6% -5.7 59.9%
65.6% -5.7
31
30
------------------------ ------------------------
------------------------ ------------------------
OTHER
REVPAR ($) 62.87
72.45 -13.2% 63.96 73.95
-13.5%
ADR ($)
107.55 119.86 -10.3% 111.80
124.32 -10.1%
OCCUPANCY (%)58.5%
60.4% -2.0 57.2%
59.5% -2.3
INTERNATIONAL(2)
2002 2001
Var.
---- ----
----
41 Hotels
OWNED HOTELS
REVPAR ($)
83.67 103.94
-19.5%
ADR ($)
142.97 159.36
-10.3%
OCCUPANCY (%) 58.5%
65.2% -6.7
23
SHERATON
REVPAR ($)
66.80 87.78
-23.9%
ADR ($)
119.34 137.03
-12.9%
OCCUPANCY (%) 56.0%
64.1% -8.1
11
WESTIN
REVPAR ($)
115.19 136.26
-15.5%
ADR ($)
185.64 202.37
-8.3%
OCCUPANCY (%) 62.0%
67.3% -5.3
6
LUXURY COLLECTION
REVPAR ($)
140.18 161.53
-13.2%
ADR ($)
232.04 247.96
-6.4%
OCCUPANCY (%) 60.4%
65.1% -4.7
W
REVPAR ($)
n/a
ADR ($)
n/a
OCCUPANCY (%)
n/a
1
OTHER
REVPAR ($)
51.03 55.88
-8.7%
ADR ($)
70.92 78.65
-9.8%
OCCUPANCY (%) 72.0%
71.0% 0.9
(1) Hotel Results exclude 6 hotels
under significant renovation or
without comparable
results, 7 hotels without prior year
results and
3 hotels sold during 2001 and 2002.
(2) See next page for breakdown by
division.
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Hotel Results - Same Store (1)
For the Quarter Ended March 31, 2002
UNAUDITED
EUROPE
LATIN AMERICA
------
-------------
2002 2001 Var. 2002
2001 Var.
---- ---- ---- ----
---- ----
25 Hotels
13 Hotels
---------------------- ----------------------
---------------------- ----------------------
OWNED HOTELS
REVPAR ($)
101.48 117.68 -13.8% 68.59 96.58
-29.0%
ADR ($)
172.96 186.01 -7.0% 122.06 147.57 -17.3%
OCCUPANCY (%)
58.7% 63.3% -4.6 56.2%
65.4% -9.3
11
10
---------------------- ----------------------
---------------------- ----------------------
SHERATON
REVPAR ($)
79.19 92.19 -14.1% 57.84 85.65
-32.5%
ADR ($)
131.50 143.87 -8.6% 111.61 138.05 -19.2%
OCCUPANCY (%)
60.2% 64.1% -3.9 51.8%
62.0% -10.2
8
3
---------------------- ----------------------
---------------------- ----------------------
WESTIN
REVPAR ($)
111.74 129.69 -13.8% 123.09 151.22 -18.6%
ADR ($)
203.41 213.74 -4.8% 157.10 183.31 -14.3%
OCCUPANCY (%)
54.9% 60.7% -5.7 78.4%
82.5% -4.1
6
LUXURY COLLECTION
REVPAR ($)
140.18 161.53 -13.2%
n/a
ADR ($)
232.04 247.96 -6.4%
n/a
OCCUPANCY (%)
60.4% 65.1% -4.7
n/a
OTHER
REVPAR ($)
n/a
n/a
ADR ($)
n/a
n/a
OCCUPANCY (%)
n/a
n/a
ASIA PACIFIC
2002 2001
Var.
---- ----
----
3 Hotels
OWNED HOTELS
REVPAR ($)
59.12 70.70
-16.4%
ADR ($)
90.08 97.24
-7.4%
OCCUPANCY (%) 65.6%
72.7% -7.1
2
SHERATON
REVPAR ($)
65.35 82.10
-20.4%
ADR ($)
107.52 110.96
-3.1%
OCCUPANCY (%) 60.8%
74.0% -13.2
WESTIN
REVPAR ($)
n/a
ADR ($)
n/a
OCCUPANCY (%)
n/a
LUXURY COLLECTION
REVPAR ($)
n/a
ADR ($)
n/a
OCCUPANCY (%)
n/a
1
OTHER
REVPAR ($)
51.03 55.88
-8.7%
ADR ($)
70.92 78.65
-9.8%
OCCUPANCY (%) 72.0%
71.0% 0.9
(1) Hotel Results exclude 6 hotels
under significant renovation or
without comparable
results, 7 hotels without prior year
results and
3 hotels sold during 2001 and 2002.
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Hotel Results - Comparable (1)
For the Quarter Ended March 31, 2002
UNAUDITED ($ thousands)
WORLDWIDE
NORTH AMERICA
---------
-------------
2002 2001 Var.
2002 2001 Var.
---- ---- ----
---- ---- ----
158 Hotels
111 Hotels
------------------------ ------------------------
------------------------ ------------------------
OWNED HOTELS
Total REVENUE718,768 854,640
-15.9% 558,919 660,972 -15.4%
Total EBITDA 190,387 271,064
-29.8% 152,402 214,739 -29.0%
MARGIN %
26.5% 31.7% -5.2
27.3% 32.5% -5.2
68
43
------------------------ ------------------------
------------------------ ------------------------
SHERATON
REVENUE
275,280 331,130 -16.9% 192,762 227,093 -15.1%
EBITDA
70,708 100,041 -29.3% 49,341 67,518
-26.9%
MARGIN %
25.7% 30.2% -4.5
25.6% 29.7% -4.1
35
23
------------------------ ------------------------
------------------------ ------------------------
WESTIN
REVENUE
215,184 253,838 -15.2% 166,990 197,268 -15.3%
EBITDA
62,146 85,917 -27.7% 49,487 68,052
-27.3%
MARGIN %
28.9% 33.8% -5.0
29.6% 34.5% -4.9
14
5
------------------------ ------------------------
------------------------ ------------------------
LUXURY COLLECTION
REVENUE
103,969 124,269 -16.3% 79,027 95,679
-17.4%
EBITDA
31,229 44,350 -29.6% 26,938 38,509
-30.0%
MARGIN %
30.0% 35.7% -5.7
34.1% 40.2% -6.2
10
10
------------------------ ------------------------
------------------------ ------------------------
W
REVENUE
54,185 65,759 -17.6% 54,185 65,759
-17.6%
EBITDA
12,720 21,349 -40.4% 12,720 21,349
-40.4%
MARGIN %
23.5% 32.5% -9.0
23.5% 32.5% -9.0
31
30
------------------------ ------------------------
------------------------ ------------------------
OTHER
REVENUE
70,149 79,644 -11.9% 65,954 75,174
-12.3%
EBITDA
13,584 19,407 -30.0% 13,917 19,311
-27.9%
MARGIN %
19.4% 24.4% -5.0
21.1% 25.7% -4.6
INTERNATIONAL(2)
----------------
2002 2001
Var.
---- ----
----
47 Hotels
OWNED HOTELS
Total REVENUE 159,849
193,667 -17.5%
Total EBITDA 37,984
56,324 -32.6%
MARGIN % 23.8%
29.1% -5.3
25
SHERATON
REVENUE
82,518 104,036 -20.7%
EBITDA
21,367 32,523
-34.3%
MARGIN % 25.9%
31.3% -5.4
12
WESTIN
REVENUE
48,194 56,570
-14.8%
EBITDA
12,659 17,865
-29.1%
MARGIN % 26.3%
31.6% -5.3
9
LUXURY COLLECTION
REVENUE
24,942 28,590
-12.8%
EBITDA
4,291 5,841
-26.5%
MARGIN % 17.2%
20.4% -3.2
0
W
REVENUE
0 0
n/a
EBITDA
0 0
n/a
MARGIN %
n/a n/a
n/a
1
OTHER
REVENUE
4,195 4,471
-6.2%
EBITDA
(333) 96
-446.5%
MARGIN % -7.9%
2.1% -10.1
(1) Hotel Results exclude 7 hotels
without prior year results and
3 hotels sold
during 2001 and 2002.
(2) See next page for breakdown by
division.
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Hotel Results -- Comparable (1)
For the Quarter Ended March 31, 2002
UNAUDITED ($ thousands)
EUROPE
LATIN AMERICA
------------------------ -------------------------
2002 2001 Var.
2002 2001 Var.
------ ------- ------ ------- ------
------
30 Hotels
13 Hotels
------------------------ -------------------------
OWNED HOTELS
Total REVENUE 94,411
109,492 -13.8% 51,079 69,106
-26.1%
Total EBITDA 15,957
22,408 -28.8% 19,926 30,961 -35.6%
MARGIN %
16.9% 20.5% -3.6
39.0% 44.8% -5.8
12
10
------------------------ -------------------------
SHERATON
REVENUE
37,774 43,902 -14.0% 34,580
49,536 -30.2%
EBITDA
7,073 9,363 -24.5% 11,861
20,301 -41.6%
MARGIN %
18.7% 21.3% -2.6
34.3% 41.0% -6.7
9
3
------------------------ -------------------------
WESTIN
REVENUE
31,695 37,000 -14.3% 16,499
19,570 -15.7%
EBITDA
4,594 7,205 -36.2% 8,065
10,660 -24.3%
MARGIN %
14.5% 19.5% -5.0
48.9% 54.5% -5.6
9
0
------------------------ -------------------------
LUXURY COLLECTION
REVENUE
24,942 28,590 -12.8%
0 0
n/a
EBITDA
4,291 5,841 -26.5%
0 0
n/a
MARGIN %
17.2% 20.4% -3.2
n/a n/a n/a
(1) Hotel Results exclude 7 hotels without prior year
results and 3
hotels sold during 2001 and 2002.
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Hotel Results -- Comparable (1)
For the Quarter Ended March 31, 2002
UNAUDITED ($ thousands)
ASIA PACIFIC
2002 2001
Var.
---- ----
----
4 Hotels
OWNED HOTELS
Total REVENUE 14,358
15,069 -4.7%
Total EBITDA
2,101 2,956
-28.9%
MARGIN %
14.6% 19.6%
-5.0
3
SHERATON
REVENUE
10,163 10,599
-4.1%
EBITDA
2,434 2,860
-14.9%
MARGIN %
23.9% 27.0%
-3.0
0
WESTIN
REVENUE
0 0
n/a
EBITDA
0 0
n/a
MARGIN %
n/a n/a
n/a
0
LUXURY COLLECTION
REVENUE
0 0
n/a
EBITDA
0 0
n/a
MARGIN %
n/a n/a
n/a
1
OTHER
REVENUE
4,195 4,471
-6.2%
EBITDA
(333) 96
-446.5%
MARGIN %
-7.9% 2.1%
-10.1
(1) Hotel Results exclude 7 hotels without prior year
results and 3
hotels sold during 2001 and 2002.
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Debt Portfolio Summary
As of March 31, 2002
UNAUDITED (in millions)
Balance % of
Avg.
Interest (in Port-
Interest Maturity
Debt
Terms millions) folio Rate
(in years)
------------------ -------
------- ------ ------ ------
Floating Rate Debt:
Senior credit facility
Revolving credit
facility
LIBOR + 72.5 $ 560 10%
2.60% 0.9
Term loan: tranche I LIBOR + 72.5
775 14% 2.60%
0.8(a)
Term loan: tranche II LIBOR + 125
423 8% 3.13%
0.9(a)
------- ------
1,758 32% 2.73%
0.9
Senior secured notes LIBOR + 275
500 9% 4.63%
0.9(a)
450M Euro facility EURIBOR + 195
392 7% 5.40%
1.2
Mortgages and other
Various 296
5% 5.32% 2.3
Interest rate swaps
(447) -8% 1.81%
------- ------
Total Floating
2,499 45% 4.00%
1.1
Fixed Rate Debt:
Sheraton Holdings
public debt
1,292(c) 23% 7.08% 9.0
Convertible debt --
series A & B
510 9% 2.36%
1.7(d)
Mortgages and other
818 15% 7.36%
9.8
Interest rate swaps
447 8% 6.55%
------- ------
Total Fixed
3,067 55% 6.29%
7.8
------- ------
Total Debt
$ 5,566 100% 5.26%
4.2
======= ======
Maturities
(a) (b)
(less than)1 year $ 2,566
$ 1,072
2-3 years 1,120
1,120
4-5 years 561
561
(more than)5 years 1,319
2,813
---------- -----------
$ 5,566 $ 5,566
========== ===========
(a) Reflects original maturities, before the effects of
the $1.5
billion senior notes sold in April
2002 with two tranches,
maturing in 2007 and 2012, retiring
all or a portion of the term
loans and senior secured notes. After
giving effect to the $1.5
billion senior notes offering and
related termination of certain
floating to fixed interest rate swaps
and new fixed to floating
interest rate swaps, the Company's
debt at March 31, 2002 was
approximately 56% fixed rate and 44%
floating rate with a weighted
average maturity of 6.1 years at 5.47%.
(b) Reflects maturities after giving effect for the $1.5
billion
senior notes sold in April 2002 discussed
in (a) above.
(c) Balance consists of outstanding public debt of $1.297
billion, net
of a $5 million fair value adjustment
related to $450 million of
fixed to floating interest rate swaps.
(d) Maturity date reflects the earlier of the first put
date or the
maturity date of the revolving credit
facility which would be used
to refinance the amount put to the
Company.
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Hotels under Renovation
and/or without Comparable Results
& Other Selected Items
For the Three Months Ended March 31, 2002
Properties under Significant Renovation or Without Comparable
Results during the 1st Quarter 2002
Property
Location
--------
--------
W Chicago -- Lake Shore
Chicago, IL
Sheraton Royal Denarau Resort Nadi,
Fiji
Sheraton Centre Toronto Hotel Toronto,
Canada
Hotel Goldener Hirsch
Salzburg, Austria
Hotel Bristol
Vienna, Austria
Hotel Imperial
Vienna, Austria
Westin Dublin Hotel
Dublin, Ireland
W New York -- Times Square
New York, NY
Hotel Des Bains
Venice Lido, Italy
Hotel Cala di Volpe
Costa Smeralda, Italy
Hotel Pitrizza
Costa Smeralda, Italy
Hotel Romazzino
Costa Smeralda, Italy
Westin Excelsior Venice Lido
Venice Lido, Italy
Selected Balance Sheet and Cash Flow Items:
Cash and cash equivalents
$ 174
First quarter dividend per share $
--
Capital expenditures
$ 58
Debt level
$ 5,566
Shares Repurchased
--
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Summary of Portfolio by Properties & Rooms
As of March 31, 2002
PROPERTIES
Sheraton Westin Lux.Col./ Four Points
St. Regis
Owned, leased & consolidated
JVs
67 37
18
7
Unconsolidated joint ventures 28
9 3
2
Equity interest properties
95 46
21
9
Managed (third-party owned) 135
37 24
20
Franchised, represented &
referral
154 26
13 114
----------------------------------------
Total
384 109
58 143
========================================
W Other
Total
Owned, leased & consolidated
JVs
12 24
165
Unconsolidated joint ventures
- 1
43
Equity interest properties
12 25
208
Managed (third-party owned)
4 5
225
Franchised, represented & referral
- 1
308
Total
16 31
741
ROOMS
Sheraton Westin Lux.Col./ Four Points
St. Regis
Owned, leased & consolidated
JVs
26,726 14,101 3,729
1,784
Unconsolidated joint
ventures
11,285 3,763 671
328
----------------------------------------
Equity interest properties 38,011
17,864 4,400
2,112
Managed (third-party owned) 45,492
18,279 5,376
3,734
Franchised, represented &
referral
45,782 8,599 1,815
20,827
----------------------------------------
Total
129,285 44,742 11,591
26,673
=========================================
W Other
Total
Owned, leased & consolidated
JVs
4,391 5,885
56,616
Unconsolidated joint ventures
- 132
16,179
Equity interest properties
4,391 6,017
72,795
Managed (third-party owned)
596 896
74,373
Franchised, represented &
referral
- 491
77,514
Total
4,987 7,404
224,682 |