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  Starwood Hotels Reports Net Income of $32 million for 1st Qtr,
 Down from $62 million in the Prior Year Period;
Will Raise Room Rates 5% on May 1, 2002
Hotel Operating Results 
-
WHITE PLAINS, N.Y. - Apr. 25, 2002 - Starwood Hotels & Resorts Worldwide, Inc. (NYSE: HOT) today reported results for the first quarter of 2002. 

First Quarter Financial Results 
EPS, excluding special items, was $0.08 compared to $0.30 in 2001. Including special items, EPS was $0.16 compared to $0.30 in 2001.
     
Total revenues, excluding other revenues from managed and franchised properties, decreased 11.8%. Revenue per available room (``REVPAR'') for Same-Store Owned Hotels decreased 15.3% in North America and 16.2% worldwide when compared to 2001.
     
Total Company EBITDA was $228 million compared to $335 million in 2001. EBITDA at Comparable Owned Hotels worldwide decreased 29.8% to $190 million. EBITDA at Comparable Owned Hotels in North America decreased 29.0% to $152 million.  Total Company EBITDA margin was approximately 25.5%. EBITDA margin at Comparable Owned Hotels in North America was 27.3%, up 270 basis points from the fourth quarter of 2001. 

First Quarter Ended March 31, 2002 
Excluding net benefits for special items of $23 million in 2002 and net benefits of $1 million in 2001, EPS was $0.08 compared to EPS of $0.30 in the corresponding period of 2001. Including these special items, EPS was $0.16 compared to EPS of $0.30 in 2001. Total revenues were down 11.8% to $894 million compared to the same period of 2001. Operating income, excluding special items, was $101 million compared to $192 million in the same period of 2001 and net income, excluding special items, was $17 million compared to $61 million in the same period of 2001. Though in line with the Company's expectations, results were adversely impacted by the weakened worldwide economic environment and the shift of the negative impact of the Passover/Easter holiday from the second quarter in 2001 to the first quarter in 2002. However, operating results were significantly improved when compared to the fourth quarter of 2001 as a result of an improving demand environment, a continued focus on cost control and a significant increase in vacation ownership interest (``VOI'') results. Depreciation expense increased when compared to the first quarter of 2001 due to the continued renovation program and the repositioning and acquisition of certain hotels.  Results further benefited from reduced interest expense resulting from a reduction in interest rates and the completion of financing transactions in the past year and a $16.0 million after-tax reduction in goodwill amortization as a result of a new accounting rule pertaining to goodwill and intangible assets. 

Comments from the CEO 
Barry S. Sternlicht, Chairman and CEO said, ``We were generally pleased with our first quarter performance. More importantly, trends are encouraging as REVPAR improved sequentially nearly every week up to the Passover/Easter holiday period and into April. Combined with tight cost controls, we now expect to exceed our earlier forecasts and feel comfortable raising our annual estimates. The important New York City market is recovering well and Europe and Asia appear likely to exceed our original expectations. Conditions remain challenging in South America. Our owned portfolio is concentrated in the larger urban markets which have been disproportionately impacted by the air travel situation and the continued slowdown in business and international travel. We are, however, very encouraged by the declining trends in new construction and perhaps the discipline for new supply that new investor scrutiny of off-balance-sheet financing will bring. Our brand momentum is strong, our guest satisfaction scores are increasing across all brands, our management and franchise business is expanding under difficult conditions and without much balance sheet support, particularly in the Asian markets where we have secured valuable contracts, the St. Regis' team is seasoning and we are very pleased with terrific results from our interval ownership projects. In the quarter, we also launched a new Westin advertising campaign and recently announced the launch of our latest initiatives behind Sheraton.'' 

Concluding, Mr. Sternlicht said, ``We are pleased to have completed the $1.5 billion senior notes offering and expect to complete a new bank facility in the coming months to refinance all remaining near-term maturities. We are actively working with potential buyers of CIGA assets and would expect to enter binding agreements in the next few months subject to tax and other structuring issues.'' 

First Quarter 2002 Operating Results 
At the Company's Comparable Owned Hotels worldwide, revenues decreased approximately $136 million to $719 million from $855 million in 2001 and EBITDA decreased 29.8% to $190 million from $271 million in 2001. EBITDA at the Company's Comparable Owned Hotels in North America decreased 29.0% to $152 million when compared to the same period of 2001. EBITDA at the Company's Comparable Owned Hotels internationally decreased 32.6% to approximately $38 million when compared to the same period of 2001 (a 26.7% decrease excluding the unfavorable effects of foreign exchange). The decline in operating results at Comparable Owned Hotels in North America when compared to 2001 reflect the impact of lower REVPAR primarily attributable to the weakened global economies. 

REVPAR at Same-Store Owned Hotels worldwide decreased 16.2% when compared to the same period of 2001 as a result of a decline in occupancy rates of 580 basis points to 60.9% and a decline in average daily rate (``ADR'') of 8.3% from the prior year.  REVPAR at Same-Store Owned Hotels in North America decreased 15.3% to $93.94 when compared to the same period of 2001 as a result of a decrease in occupancy rates to 61.6% from 67.1% in the prior year, while ADR decreased 7.8% to $152.43.  Internationally, Same-Store Owned Hotel REVPAR decreased 19.5%. 

EBITDA margins at Comparable Owned Hotels worldwide decreased to 26.5% when compared to 31.7% in the same period of 2001.  In North America, EBITDA margins at Comparable Owned Hotels decreased to 27.3% when compared to 32.5% in the same period of 2001 but increased 270 basis points when compared to 24.6% in the fourth quarter of 2001. Internationally, EBITDA margins at Comparable Owned Hotels decreased to 23.8% when compared to 29.1% in the same period of 2001 but increased 170 basis points when compared to 22.1% in the fourth quarter of 2001. 

During the first quarter of 2002, the Company added nine management and franchise contracts representing approximately 2,500 rooms, including the Sheraton Krabi Beach Resort (246 rooms) in Krabi, Thailand; the Westin Miyako Kyoto (516 rooms) in Kyoto, Japan; and the Four Points Seoul (269 rooms) in Seoul, Korea. Through the end of 2003, the Company's backlog of quality hotels and resorts around the world includes 47 new destinations with more than 14,000 rooms. 

Starwood Vacation Ownership, Inc. (``SVO'') currently has 15 interval ownership resorts in its portfolio. SVO is selling VOI inventory at ten resorts and engaged in pre-opening sales at two others currently under construction (Westin Mission Hills Resort Villas in Rancho Mirage, California and Westin Ka`anapali Ocean Resort Villas in Maui, Hawaii). Sales in the first quarter were particularly strong at the Maui and Mission Hills resorts. SVO will begin construction of its fourth Westin-branded interval ownership resort later this year featuring 158 villas located adjacent to the Westin Kierland Resort & Spa in Scottsdale, Arizona. The resort is scheduled to open in late 2002. The Company did not sell any notes receivable originated by the vacation ownership operations in the first quarter of 2002. 

Dispositions 
The Company continues to review its portfolio for disposition candidates. In January, the Company announced that it had initiated the formal sale process for the CIGA portfolio of 25 luxury hotels, land, golf courses and marinas. The Company has reviewed indications of interest, is working toward binding agreements, and expects to enter into contracts for sale in the next few months. 

Capital 
During the first quarter of 2002, the Company invested approximately $58 million in capital assets, including completion of the W Times Square, the guest room and lobby renovation at the Westin Excelsior in Rome (316 rooms) and VOI construction at Westin Mission Hills Resort Villas in Rancho Mirage, California and Westin Ka`anapali Ocean Resort Villas in Maui, Hawaii as well as the ongoing development of the St. Regis Museum Tower in San Francisco (269 rooms and 102 condominiums) scheduled for completion in 2004. Work also continues on the new Sheraton prototype. The Company spent an additional $14 million on other hotel investments including completion of the buyout of its minority partners at the W Los Angeles and minority investments in a number of new hotel projects including the W Mexico City (228 rooms) and the W San Diego (261 rooms). 

Financing 
On March 31, 2002, the Company had total debt of $5.566 billion and cash and cash equivalents of $174 million. At the end of the first quarter of 2002, after giving effect to the Senior Notes Offering and related termination of certain floating interest rate swaps and new fixed interest rate swaps described below, the Company's debt was approximately 56% fixed rate and 44% floating rate and its weighted average maturity was 6.1 years. As of March 31, 2002, the Company had cash and availability under its domestic and international revolving credit facilities of approximately $731 million and the Company's debt had a weighted average interest rate of 5.26% (5.47% after giving effect to the Senior Notes Offering). 

In December 2001, the Company entered into an 18-month 450 million Euro loan with an interest rate of Euribor plus 195 basis points. The proceeds of the Euro loan were drawn down in two tranches; the first 270 million Euros was drawn down in December and used to repay the previously outstanding 270 million Euro facility and the remaining 180 million Euros was drawn down in January 2002 and the proceeds were used to pay down a portion of the Company's domestic revolving credit facility.

In April 2002, the Company sold $1.5 billion of senior notes in two tranches -- $700 million principal amount of 7-3/8% senior notes due 2007 and $800 million principal amount of 7-7/8% senior notes due 2012 (the ``Senior Notes Offering''). The Company used the proceeds to repay all of its senior secured notes facility and a portion of its senior credit facility. The Company expects to refinance the senior credit facility over the coming months. 

In connection with the repayment of debt with the senior notes offering proceeds and the anticipated refinancing of the remaining senior credit facility, the Company expects to incur approximately $30 million of one-time charges in the second quarter. These charges relate to the write-off of deferred financing costs, termination fees for the early extinguishment of debt, and terminated interest rate swaps associated with the repaid debt. 

At March 31, 2002, Starwood had approximately 202 million shares outstanding (including partnership units and exchangeable preferred shares).

Dividend 
In January 2002, Starwood Hotels & Resorts paid a fourth quarter dividend of $0.20 per share, representing a 16% increase over the prior year quarterly dividend. In 2002, the Company has shifted from a quarterly dividend to an annual dividend. The final determination of the amount of the dividend will be subject to economic and financial considerations and Board approval in the fourth quarter of 2002. 

Special Items 
The Company recorded net benefits of $23 million (pretax) for special items in the first quarter of 2002 when compared to net benefits of $1 million in the same period of 2001. 

The net benefits in the first quarter of 2002 primarily represent a non-cash foreign exchange gain of approximately $24 million (pretax), which reduced selling, general, administrative and other costs, resulting from the devaluation of the Argentine Peso and a credit for the reversal of impairment charges for an e-business investment and certain receivables no longer deemed impaired, offset by a $3 million loss on asset dispositions primarily related to an impairment charge to reduce the carrying value of a hotel to its fair value. The foreign exchange gain represents the mark-to-market, in accordance with Statement of Financial Accounting Standards No. 52, of a U.S. dollar intercompany receivable in Argentina. 

The following represents a reconciliation of net income before special items to net income after special items:
 

Three Months Ended
March 31,

                                                         2002         2001
                                                           ----------   ----------

Net income before special items...............$    17      $    61
                                              ---------   ----------

Special items:
Restructuring and other special credits, net..   2(a)         1(b)
Loss on asset dispositions(c).................    (3)           --
Foreign exchange gain from Argentina(d).......     24           --
                                              ---------   ----------
                                              ---------   ----------
Total special items - pretax..................     23            1
Income tax expense - 35% incremental tax rate.      8           --
                                              ---------   ----------
                                              ---------   ----------
Total special items - after-tax...............     15            1
                                              ---------   ----------

Net income....................................$    32      $    62
                                              =========   ==========
                                              =========   ==========

EPS before special items......................$  0.08      $  0.30
EPS                                           $  0.16      $  0.30
 

    (a) During the first quarter of 2002, the Company sold its
        investment in an e-business venture previously deemed impaired
        and collected receivables which were previously deemed
        uncollectible.

    (b) During the first quarter of 2001, the Company wrote down its
        investments in various e-business ventures by approximately
        $19 million based on the market conditions for the technology
        sector at the time and management's assessment that these
        investments were permanently impaired. This charge was offset
        by the reversal of a $20 million bad debt restructuring charge
        taken in 1998 relating to a note receivable which is now fully
        performing.

    (c) Balance primarily represents an impairment charge to reduce
        the carrying value of a hotel to its fair market value.
    (d) Reflected in selling, general, administrative and other
        expenses.
 

Future Performance 
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 political environments. Actual results may differ materially. 

The weakness in North American and European economies, combined with the current political environment in Argentina and other parts of the world and their consequent impact on travel in their respective regions and on the rest of the world, make it difficult to predict results with any degree of precision.

Assuming an economic recovery in the second half of 2002 resulting in annual REVPAR flat with 2001 levels, the Company expects full-year EBITDA of approximately $1.26 billion (up 2.4% from 2001) and EPS of approximately $1.38 (up 38.0% from 2001), including the effect of the new accounting rule pertaining to goodwill and intangible assets and assuming an effective tax rate of approximately 23%. Based on these assumptions and assuming no asset sales for modeling purposes, approximate quarterly EPS for the remaining quarters of 2002 is expected to be as follows: 

2002

First quarter (actual).....................$0.08
Second quarter (estimate)............. 0.40
Third quarter (estimate)..................0.43
Fourth quarter (estimate)............... 0.47

Full year (estimate).......................$ 1.38

     
REVPAR at Same-Store Owned Hotels in North America for the second quarter of 2002 is now expected to decline approximately 4% - 6% when compared to the second quarter of 2001.
     
The Company currently expects total capital expenditures in 2002 to be approximately $300 million. However, the Company is encouraged with current market trends and may increase capital expenditures for high return investment projects later in the year if operating trends continue to be positive.
     
Discretionary free cash flow (after cash interest expense, cash taxes, and total planned capital expenditures) is expected to exceed $500 million.
     
For full year 2003, the Company currently expects REVPAR increases of 6% - 8%, EBITDA of $1.40 billion - $1.45 billion and EPS of $1.65 - $1.75. 
 

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

               
Starwood Hotels & Resorts Worldwide, Inc. is one of the leading hotel and leisure companies in the world with more than 740 properties in over 80 countries and 110,000 employees at its owned and managed properties. 

Also See Starwood Reports 4th Qtr Loss of $2 million Compared with a Profit of $130 million Last Year / Property Operating Results / Jan 2002 
Starwood Puts Sharp Focus on Sheraton Brand; Tougher Standards Mandated, Franchisees Have Created Inconsistent Product / April 2002 

###

Contact:
Starwood Hotels & Resorts Worldwide
David Matheson
914/640-5204
 


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