STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
(In millions, except per Share data)
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
(In millions, except per Share data)
Three Months Ended
Nine Months Ended
September 30,
September 30,
--------------------------
---------------------------
2002 2001
%
2002 2001 %
Variance
Variance
--------------------------
---------------------------
Revenues
Owned, leased and
consolidated joint
$ 806 $ 802
0.5 venture hotels $ 2,418 $
2,597 (6.9)
Other hotel and
164 163
0.6 leisure(a)
478 492 (2.8)
--------------------------
---------------------------
970 965
0.5
2,896 3,089 (6.2)
Other revenues
from managed and
franchised
187 182
2.7 properties(b)
589 574 2.6
--------------------------
---------------------------
1,157 1,147
0.9
3,485 3,663 (4.9)
Costs and Expenses
Owned, leased and
consolidated joint
589 576
(2.3) venture hotels 1,759
1,790 1.7
Selling, general,
administrative
123 116
(6.0) and other(c)
318 323 1.5
Restructuring and
other special charges
(2) 4
150.0 (credits), net
(5) 3 266.7
124 109
(13.8) Depreciation
352 321 (9.7)
6 25
76.0 Amortization
16 70 77.1
-----------------------
-------------------------
840 830
(1.2)
2,440 2,507 2.7
Other expenses
from managed and
franchised
187 182
(2.7) properties(b) 589
574 (2.6)
---------------------------
-----------------------------
1,027 1,012
(1.5)
3,029 3,081 1.7
---------------------------
-----------------------------
130 135
(3.7) Operating income 456
582 (21.6)
Interest expense,
net of interest
(81) (89)
9.0 income(d)
(271) (290) 6.6
Gain (loss) on asset
6 (1)
700.0 dispositions, net 2
- -
------------------------
-------------------------------
55 45
22.2
187 292
(36.0)
(3) (14)
78.6 Income tax expense (27)
(90) 70.0
Minority equity
- (1)
- in net income
- (3)
-
-----------------------
--------------------------------
Income from
continuing
52 30
73.3 operations
160 199
(19.6)
Discontinued
- -
- operations
104 -
-
----------------------
--------------------------------
$ 52 $ 30 73.3
Net income $ 264
$ 199 32.7
======================
================================
Earnings Per
Share -- Basic
Continuing
$ 0.26 $ 0.15 73.3 operations
$ 0.80 $ 0.99 (19.2)
Discontinued
-
- - operations
0.51 -
-
----------------------
--------------------------------
$ 0.26 $ 0.15 73.3 Net income
$ 1.31 $ 0.99 32.3
======================
================================
Earnings Per
Share -- Diluted
Continuing
$ 0.26 $ 0.14 85.7 operations
$ 0.78 $ 0.96 (18.8)
Discontinued
- -
- operations
0.51 -
-
---------------------
--------------------------------
$ 0.26 $ 0.14 85.7 Net income
$ 1.29 $ 0.96
34.4
=====================
================================
Weighted average
201 200
number of Shares 201
201
==============
==================
Weighted average
number of Shares
204 206
assuming dilution 205 207
==============
==================
=========== =========
Reconciliation of
Operating Income
to EBITDA(e)
$ 130 $ 135 (3.7) Operating
income $ 456 $ 582
(21.6)
130 116 12.1
Depreciation(f) 369
341 8.2
6 25
(76.0) Amortization(f) 16
70 (77.1)
Interest expense of
unconsolidated joint
4
6 (33.3) ventures
12 19
(36.8)
-
2 - Interest income
1 9
(88.9)
Restructuring and other
special charges
(2) 4 (150.0)
(credits), net (5)
3 (266.7)
Foreign exchange
loss (gain) from
3
- - Argentina
(30) -
-
5
- - Estimated construction
remediation 5
- -
---------------------
---------------------------
$ 276 $ 288 (4.2)
EBITDA $
824 $ 1,024 (19.5)
=====================
============================
(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) Interest expense includes early
debt extinguishment costs of
$29 million
and $9 million, respectively, in the nine months
ended September
30, 2002 and 2001, as a result of the
Company's
early adoption of Statement of Financial Accounting
Standards
No. 145.
(e) EBITDA is defined as income before
interest expense, income
tax expense
and depreciation and amortization. Special items
and gains
and losses from asset dispositions 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.
(f) Includes Starwood's share of depreciation
and amortization
expense of
unconsolidated joint ventures.
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
UNAUDITED BALANCE SHEET INFORMATION
(In millions)
September 30,
2002
----------------
Total assets
$ 12,232
Cash and cash equivalents
$ 229
Total debt(a)
$ 5,347
Shares outstanding(b)
203
(a) Excludes Starwood's share of unconsolidated
joint venture debt
aggregating
approximately $342 million.
(b) Shares outstanding include partnership
units and exchangeable
preferred
shares.
STARWOOD HOTELS & RESORTS WORLDWIDE,
INC.
Hotel Results - Same Store(1)
For the Quarter Ended September 30, 2002
UNAUDITED
WORLDWIDE
NORTH AMERICA
2002 2001 Var.
2002 2001
Var.
---- ---- ----
---- ----
----
160 Hotels
111 Hotels
----------
-------------
OWNED HOTELS
REVPAR ($) 97.08
99.42 -2.4% 91.42
94.00 -2.7%
ADR ($) 148.24
150.81 -1.7% 134.90
140.57 -4.0%
OCCUPANCY (%) 65.5% 65.9%
-0.4 67.8%
66.9% 0.9
69
45
---------
-----------
SHERATON
REVPAR ($) 77.89 84.80
-8.1% 81.68 88.27
-7.5%
ADR ($) 123.48 130.38
-5.3% 122.26 130.74
-6.5%
OCCUPANCY(%) 63.1% 65.0%
-1.9 66.8%
67.5% -0.7
36
23
---------
-----------
WESTIN
REVPAR ($) 105.59 103.57
2.0% 94.79 92.39
2.6%
ADR ($) 151.15 152.32
-0.8% 133.34 136.17
-2.1%
OCCUPANCY(%) 69.9% 68.0%
1.9 71.1% 67.8%
3.3
16
5
-----------
------------
LUXURY COLLECTION
REVPAR ($) 223.58 220.90
1.2% 148.10 164.54 -10.0%
ADR ($) 406.41
352.03 15.4% 296.11
287.65 2.9%
OCCUPANCY(%) 55.0% 62.8%
-7.8 50.0% 57.2%
-7.2
10
10
------------
-------------
W
REVPAR ($) 123.56 124.12
-0.5% 123.56 124.12
-0.5%
ADR ($) 187.00
187.19 -0.1% 187.00
187.19 -0.1%
OCCUPANCY(%) 66.1% 66.3%
-0.2 66.1% 66.3%
-0.2
29
28
---------------
--------------
OTHER
REVPAR ($) 80.84
77.76 4.0% 83.29
80.27 3.8%
ADR ($) 114.18
116.76 -2.2% 118.43
121.39 -2.4%
OCCUPANCY(%) 70.8% 66.6%
4.2 70.3% 66.1%
4.2
INTERNATIONAL(2)
2002 2001
Var.
---- ----
----
49 Hotels
-----------
OWNED HOTELS
REVPAR ($)
114.29 115.89
-1.4%
ADR ($)
195.15 183.80
6.2%
OCCUPANCY (%)
58.6% 63.1%
-4.5
24
-----------
SHERATON
REVPAR ($)
69.24 76.87
-9.9%
ADR ($)
126.91 129.44
-2.0%
OCCUPANCY(%)
54.6% 59.4%
-4.8
13
-----------
WESTIN
REVPAR ($)
145.35 144.73
0.4%
ADR ($)
222.56 211.16
5.4%
OCCUPANCY(%)
65.3% 68.5%
-3.2
11
------------
LUXURY COLLECTION
REVPAR ($)
294.42 273.87
7.5%
ADR ($)
493.12 402.94
22.4%
OCCUPANCY(%)
59.7% 68.0%
-8.3
W
REVPAR ($)
ADR ($)
OCCUPANCY(%)
1
-------------
OTHER
REVPAR ($)
55.71 51.95
7.2%
ADR ($)
73.63 72.78
1.2%
OCCUPANCY(%)
75.7% 71.4%
4.3
(1) Hotel Results exclude 1 hotel under
significant renovation or
without comparable
results, 3 hotels without prior year
results and
2 hotels sold during 2001 and 2002.
(2) See next page for breakdown by
division.
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Hotel Results - Same Store(1)
For the Quarter Ended September 30, 2002
UNAUDITED
EUROPE
LATIN AMERICA
-----------------------------------------------------------
2002 2001
Var. 2002 2001
Var.
---- ----
---- ---- ----
----
33 Hotels
13 Hotels
------------
------------
OWNED HOTELS
REVPAR ($) 171.60 165.51
3.7% 45.92 60.60
-24.2%
ADR ($) 269.78
240.66 12.1% 95.27
112.88 -15.6%
OCCUPANCY(%) 63.6% 68.8%
-5.2 48.2% 53.7%
-5.5
12
10
--------------
-------------
SHERATON
REVPAR ($) 101.04 101.67
-0.6% 43.40 59.13
-26.6%
ADR ($) 159.50
148.61 7.3%
94.73 114.83 -17.5%
OCCUPANCY (%)63.3% 68.4%
-5.1 45.8%
51.5% -5.7
10
3
------------------
----------------
WESTIN
REVPAR ($) 178.33 173.95
2.5% 58.71 68.02
-13.7%
ADR ($) 265.33
248.58 6.7% 97.34
105.02 -7.3%
OCCUPANCY (%)67.2% 70.0%
-2.8 60.3%
64.8% -4.5
11
----------------
LUXURY COLLECTION
REVPAR ($) 294.42 273.87
7.5%
ADR ($) 493.12
402.94 22.4%
OCCUPANCY(%) 59.7% 68.0%
-8.3
OTHER
REVPAR ($)
ADR ($)
OCCUPANCY (%)
ASIA PACIFIC
------------------------------
2002 2001
Var.
---- ----
----
3 Hotels
----------------
OWNED HOTELS
REVPAR ($)
65.42 60.94
7.4%
ADR ($)
95.12 91.30
4.2%
OCCUPANCY(%)
68.8% 66.7%
2.1
2
--------------
SHERATON
REVPAR ($)
72.87 67.84
7.4%
ADR ($)
114.76 107.40
6.9%
OCCUPANCY (%)
63.5% 63.2%
0.3
WESTIN
REVPAR ($)
ADR ($)
OCCUPANCY (%)
LUXURY COLLECTION
REVPAR ($)
ADR ($)
OCCUPANCY(%)
1
------------------
OTHER
REVPAR ($)
55.71 51.95
7.2%
ADR ($)
73.63 72.78
1.2%
OCCUPANCY (%)
75.7% 71.4%
4.3
(1) Hotel Results exclude 1 hotel under
significant renovation or
without comparable
results, 3 hotels without prior year
results and
2 hotels sold during 2001 and 2002.
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Hotel Results - Comparable (1)
For the Quarter Ended September 30, 2002
UNAUDITED ($thousands)
WORLDWIDE
NORTH AMERICA
---------
-----------------
2002 2001 Var.
2002 2001 Var.
--------- --------
------- -------- -------- -----
161
111
Hotels
Hotels
----------------------- -----------------------
OWNED HOTELS
Total
REVENUE 774,853 789,839 -1.9%
540,757 551,884 -2.0%
Total
EBITDA 211,485 225,417
-6.2% 131,597 142,074 -7.4%
MARGIN
%
27.3% 28.5% -1.2 24.3%
25.7% -1.4
70
45
-------------------------
------------------------
SHERATON
REVENUE 305,469 328,297 -7.0%
213,856 226,891 -5.7%
EBITDA 82,075 99,365
-17.4% 55,645 67,447 -17.5%
MARGIN
% 26.9%
30.3% -3.4 26.0% 29.7%
-3.7
36
23
-------------------------
------------------------
WESTIN
REVENUE 213,481 209,274
2.0% 148,090 144,355 2.6%
EBITDA 58,986 54,222
8.8% 38,370 32,705 17.3%
MARGIN
%
27.6% 25.9% 1.7 25.9%
22.7% 3.2
16
5
-------------------------
------------------------
LUXURY
COLLECTION
REVENUE 119,552 117,431
1.8% 47,242 50,232 -6.0%
EBITDA 36,878 36,345
1.5% 3,842 6,273 -38.8%
MARGIN
% 30.8%
31.0% -0.2 8.1% 12.5%
-4.4
10
10
-------------------------
------------------------
W
REVENUE 54,532 55,371
-1.5% 54,532 55,371 -1.5%
EBITDA 10,308 12,179
-15.4% 10,308 12,179 -15.4%
MARGIN
% 18.9%
22.0% -3.1 18.9% 22.0%
-3.1
29
28
-------------------------
------------------------
OTHER
REVENUE 81,819 79,466
3.0% 77,037 75,035 2.7%
EBITDA 23,238 23,306
-0.3% 23,432 23,470 -0.2%
MARGIN
% 28.4%
29.3% -0.9 30.4% 31.3%
-0.9
INTERNATIONAL(2)
-----------------
2002 2001 Var.
-------- -------- ------
50
Hotels
------------------------
OWNED HOTELS
Total
REVENUE 234,096 237,955
-1.6%
Total
EBITDA 79,888
83,343 -4.1%
MARGIN
%
34.1% 35.0% -0.9
25
----------------------------
SHERATON
REVENUE 91,613 101,406
-9.7%
EBITDA 26,430
31,918 -17.2%
MARGIN
%
28.8% 31.5% -2.7
13
----------------------------
WESTIN
REVENUE 65,391
64,919 0.7%
EBITDA 20,616
21,517 -4.2%
MARGIN
%
31.5% 33.1% -1.6
11
----------------------------
LUXURY
COLLECTION
REVENUE 72,310
67,199 7.6%
EBITDA 33,036
30,072 9.9%
MARGIN
%
45.7% 44.8% 0.9
0
W
REVENUE
0 0 n/a
EBITDA
0 0 n/a
MARGIN
%
n/a n/a n/a
1
----------------------------
OTHER
REVENUE 4,782
4,431 7.9%
EBITDA
(194) (164) -18.3%
MARGIN
%
-4.1% -3.7% -0.4
(1) Hotel Results exclude 3 hotels
without prior year results and
2 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 September 30, 2002
UNAUDITED ($thousands)
LATIN
ASIA
EUROPE
AMERICA
PACIFIC
--------
--------
--------
2002 2001 Var. 2002 2001
Var. 2002 2001 Var.
--------------------------------------------------------------
33
13
4
Hotels
Hotels
Hotels
--------------------------------------------------------------
OWNED HOTELS
Total
REVENUE 179,786 172,392 4.3% 36,767 49,846 -26.2%
17,543 15,717 11.6%
Total
EBITDA 64,907 63,166 2.8% 11,604
17,382 -33.2% 3,377 2,795 20.8%
MARGIN % 36.1% 36.6% -0.5
31.6% 34.9% -3.3 19.2% 17.8% 1.4
12
10
3
--------------------------------------------------------------
SHERATON
REVENUE 50,917 50,582 0.7% 27,935 39,538
-29.3% 12,761 11,286 13.1%
EBITDA 13,349 14,332 -6.9% 9,510
14,627 -35.0% 3,571 2,959 20.7%
MARGIN % 26.2% 28.3% -2.1
34.0% 37.0% -3.0 28.0% 26.2% 1.8
10
3
0
------------------------------------------
WESTIN
REVENUE 56,559 54,611 3.6% 8,832
10,308 -14.3% 0
0 n/a
EBITDA 18,522 18,762 -1.3% 2,094
2,755 -24.0% 0
0 n/a
MARGIN % 32.7% 34.4% -1.7
23.7% 26.7% -3.0 n/a n/a
n/a
11
0
0
---------------------
LUXURY COLLECTION
REVENUE 72,310 67,199 7.6%
0 0 n/a
0 0 n/a
EBITDA 33,036 30,072 9.9%
0 0 n/a
0 0 n/a
MARGIN % 45.7% 44.8% 0.9
n/a n/a n/a n/a
n/a n/a
0
0
0
W
REVENUE 0
0 n/a 0
0 n/a 0
0 n/a
EBITDA 0
0 n/a 0
0 n/a 0
0 n/a
MARGIN % n/a
n/a n/a n/a n/a
n/a n/a n/a n/a
0
0
1
--------------------
OTHER
REVENUE 0
0 n/a 0
0 n/a 4,782 4,431 7.9%
EBITDA 0
0 n/a 0
0 n/a (194) (164)-18.3%
MARGIN % n/a
n/a n/a n/a n/a
n/a -4.1% -3.7% -0.4
(1) Hotel Results exclude 3 hotels without prior year
results and 2
hotels sold during 2001 and 2002.
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Hotel Results - Same Store (1)
For the Nine Months Ended September 30, 2002
UNAUDITED
WORLDWIDE NORTH AMERICA
INTERNATIONAL(2)
--------- ---------------
----------------
2002
2001 Var. 2002 2001 Var.
2002 2001 Var.
---------------------------------------------------------------
156
110
46
Hotels
Hotels
Hotels
---------------------------------------------------------------
OWNED
HOTELS
REVPAR
($) 96.53 107.09 -9.9%
94.97 105.23 -9.8% 101.28 112.77 -10.2%
ADR ($)150.39 158.99 -5.4% 144.50 154.55 -6.5%
170.20 173.08 -1.7%
OCCUPANCY
(%) 64.2% 67.4% -3.2
65.7% 68.1% -2.4 59.5% 65.2% -5.7
68
44
24
---------------------------------------------------------------
SHERATON
REVPAR
($) 78.28 90.78 -13.8%
82.37 94.54 -12.9% 69.53 82.78 -16.0%
ADR ($)127.90 138.31 -7.5% 129.60 140.62 -7.8%
123.80 133.00 -6.9%
OCCUPANCY
(%) 61.2% 65.6% -4.4
63.6% 67.2% -3.6 56.2% 62.2% -6.0
35
23
12
---------------------------------------------------------------
WESTIN
REVPAR
($) 107.38 116.21 -7.6%
98.89 107.06 -7.6% 140.24 151.47 -7.4%
ADR ($)154.63 161.14 -4.0% 140.60 147.85 -4.9%
212.58 213.45 -0.4%
OCCUPANCY
(%) 69.4% 72.1% -2.7
70.3% 72.4% -2.1 66.0% 71.0% -5.0
14
5
9
---------------------------------------------------------------
LUXURY COLLECTION
REVPAR
($) 216.31 237.61 -9.0% 208.88
241.00 -13.3% 224.69 233.77 -3.9%
ADR ($)362.18 349.90 3.5% 349.15 357.35
-2.3% 376.94 341.59 10.3%
OCCUPANCY
(%) 59.7% 67.9% -8.2
59.8% 67.4% -7.6 59.6% 68.4% -8.8
10
10
0
-----------------------------------------
W
REVPAR
($) 129.91 139.89 -7.1% 129.91
139.89 -7.1% 0.00 0.00
n/a
ADR ($)197.10 209.47 -5.9% 197.10 209.47 -5.9%
0.00 0.00 n/a
OCCUPANCY
(%) 65.9% 66.8% -0.9
65.9% 66.8% -0.9 0.0% 0.0%
n/a
29
28
1
---------------------------------------------------------------
OTHER
REVPAR
($) 73.67 76.66 -3.9%
75.59 79.19 -4.5% 54.21 50.63
7.1%
ADR ($)111.70 118.83 -6.0% 115.90 123.64 -6.3%
73.80 73.08 1.0%
OCCUPANCY
(%) 66.0% 64.5%
1.5 65.2% 64.0% 1.2 73.5%
69.3% 4.2
(1) Hotel Results exclude 1 hotel under
significant renovation or
without comparable
results, 7 hotels without prior year
results and
4 hotels sold during 2001 and 2002.
(2) See next page for breakdown by
division.
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Hotel Results - Same Store (1)
For the Nine Months Ended September 30, 2002
UNAUDITED
EUROPE LATIN
AMERICA ASIA PACIFIC
-------- ---------------
-------------
2002 2001 Var. 2002 2001
Var. 2002 2001 Var.
-------------------------------------------------------------
30
13
3
Hotels
Hotels
Hotels
-------------------------------------------------------------
OWNED HOTELS
REVPAR($) 142.79 150.36 -5.0% 56.67 76.97
-26.4% 63.30 62.92 0.6%
ADR ($) 226.31 218.50 3.6% 108.16 129.65
-16.6% 94.37 92.55 2.0%
OCCUPANCY
(%) 63.1%
68.8% -5.7 52.4% 59.4% -7.0 67.1%
68.0% -0.9
12
10
2
-------------------------------------------------------------
SHERATON
REVPAR($) 93.81 100.65 -6.8% 50.52 70.96
-28.8% 70.28 72.37 -2.9%
ADR ($) 147.26 146.55 0.5% 102.91 126.12
-18.4% 113.05 108.03 4.6%
OCCUPANCY
(%) 63.7%
68.7% -5.0 49.1% 56.3% -7.2 62.2%
67.0% -4.8
9
3
0
-----------------------------------------
WESTIN
REVPAR($) 161.63 169.61 -4.7% 87.86 107.24 -18.1%
0.00 0.00 n/a
ADR ($) 249.92 244.73 2.1% 127.05 142.97
-11.1% 0.00 0.00 n/a
OCCUPANCY
(%) 64.7%
69.3% -4.6 69.2% 75.0% -5.8 0.0%
0.0% n/a
9
0
0
--------------------
LUXURY COLLECTION
REVPAR($) 224.69 233.77 -3.9% 0.00
0.00 n/a 0.00 0.00 n/a
ADR ($) 376.94 341.59 10.3% 0.00
0.00 n/a 0.00 0.00 n/a
OCCUPANCY
(%) 59.6%
68.4% -8.8 0.0% 0.0% n/a
0.0% 0.0% n/a
0
0
0
W
REVPAR($) 0.00 0.00 n/a
0.00 0.00 n/a 0.00
0.00 n/a
ADR ($) 0.00 0.00
n/a 0.00 0.00 n/a
0.00 0.00 n/a
OCCUPANCY
(%)
0.0% 0.0% n/a 0.0% 0.0%
n/a 0.0% 0.0% n/a
0
0
1
--------------------
OTHER
REVPAR($) 0.00 0.00 n/a
0.00 0.00 n/a 54.21 50.63
7.1%
ADR ($) 0.00 0.00
n/a 0.00 0.00 n/a
73.80 73.08 1.0%
OCCUPANCY
(%)
0.0% 0.0% n/a 0.0% 0.0%
n/a 73.5% 69.3% 4.2
(1) Hotel Results exclude 1 hotel under
significant renovation or
without comparable
results, 7 hotels without prior year
results and
4 hotels sold during 2001 and 2002.
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Hotel Results - Comparable (1)
For the Nine Months Ended September 30, 2002
UNAUDITED ($thousands)
WORLDWIDE
NORTH AMERICA
----------
-------------
2002 2001 Var.
2002 2001 Var.
----------------------------------------------------
157
110
Hotels
Hotels
----------------------------------------------------
OWNED HOTELS
Total
REVENUE 2,273,901 2,514,043 -9.6%
1,675,378 1,853,899 -9.6%
Total
EBITDA 638,992
792,289 -19.3% 449,922 567,810 -20.8%
MARGIN % 28.1%
31.5% -3.4 26.9%
30.6% -3.7
69
44
----------------------------------------------------
SHERATON
REVENUE 881,662 1,004,727
-12.2% 611,587 690,129 -11.4%
EBITDA 245,660
314,765 -22.0% 166,588 215,065 -22.5%
MARGIN % 27.9%
31.3% -3.4 27.2%
31.2% -4.0
35
23
----------------------------------------------------
WESTIN
REVENUE 660,118
716,835 -7.9% 480,420 523,277 -8.2%
EBITDA 193,905
229,857 -15.6% 135,379 159,594 -15.2%
MARGIN % 29.4%
32.1% -2.7 28.2%
30.5% -2.3
14
5
----------------------------------------------------
LUXURY COLLECTION
REVENUE 330,688
364,505 -9.3% 195,558 225,139 -13.1%
EBITDA 99,692
124,570 -20.0% 47,507 69,662 -31.8%
MARGIN % 30.1%
34.2% -4.1 24.3%
30.9% -6.6
10
10
----------------------------------------------------
W
REVENUE 173,076
188,396 -8.1% 173,076 188,396 -8.1%
EBITDA 41,765
55,504 -24.8% 41,765 55,504 -24.8%
MARGIN % 24.1%
29.5% -5.4 24.1%
29.5% -5.4
29
28
----------------------------------------------------
OTHER
REVENUE 228,357
239,580 -4.7% 214,737 226,958 -5.4%
EBITDA 57,970
67,593 -14.2% 58,683 67,985 -13.7%
MARGIN % 25.4%
28.2% -2.8 27.3%
30.0% -2.7
INTERNATIONAL(2)
----------------
2002 2001 Var.
----------------------
47
Hotels
----------------------------
OWNED HOTELS
Total
REVENUE
598,523 660,144 -9.3%
Total
EBITDA
189,070 224,479 -15.8%
MARGIN %
31.6% 34.0% -2.4
25
----------------------------
SHERATON
REVENUE
270,075 314,598 -14.2%
EBITDA
79,072 99,700 -20.7%
MARGIN %
29.3% 31.7% -2.4
12
----------------------------
WESTIN
REVENUE
179,698 193,558 -7.2%
EBITDA
58,526 70,263 -16.7%
MARGIN %
32.6% 36.3% -3.7
9
----------------------------
LUXURY COLLECTION
REVENUE
135,130 139,366 -3.0%
EBITDA
52,185 54,908 -5.0%
MARGIN %
38.6% 39.4% -0.8
0
W
REVENUE
0 0 n/a
EBITDA
0 0 n/a
MARGIN %
n/a n/a n/a
1
----------------------------
OTHER
REVENUE
13,620 12,622 7.9%
EBITDA
(713) (392) -81.9%
MARGIN %
-5.2% -3.1% -2.1
(1) Hotel Results exclude 7 hotels
without prior year results and
4 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 Nine Months Ended September 30, 2002
UNAUDITED ($thousands)
EUROPE
LATIN
ASIA
AMERICA
PACIFIC
--------
--------
--------
2002
2001 Var. 2002 2001 Var.
2002 2001 Var.
----------------------------------------------------------------
30
13
4
Hotels
Hotels
Hotels
----------------------------------------------------------------
OWNED HOTELS
Total
RE-
VENUE 416,317 436,822 -4.7% 133,286 178,795 -25.5% 48,920
44,527 9.9%
Total
EBITDA 131,678 145,514 -9.5% 48,936 71,399 -31.5%
8,456 7,566 11.8%
MARGIN
% 31.6%
33.3% -1.7 36.7% 39.9% -3.2
17.3% 17.0% 0.3
12
10
3
----------------------------------------------------------------
SHERATON
RE-
VENUE 139,565 149,081 -6.4% 95,210 133,612 -28.7%
35,300 31,905 10.6%
EBITDA 35,405 40,129 -11.8% 34,498 51,613
-33.2% 9,169 7,958 15.2%
MARGIN
% 25.4%
26.9% -1.5 36.2% 38.6% -2.4
26.0% 24.9% 1.1
9
3
0
--------------------------------------------
WESTIN
RE-
VENUE 141,622 148,375 -4.6% 38,076 45,183
-15.7% 0 0
n/a
EBITDA 44,088 50,477 -12.7% 14,438 19,786
-27.0% 0 0
n/a
MARGIN
% 31.1%
34.0% -2.9 37.9% 43.8% -5.9
n/a n/a n/a
9
0
0
----------------------
LUXURY COLLECTION
RE-
VENUE 135,130 139,366 -3.0%
0 0 n/a
0 0 n/a
EBITDA 52,185 54,908 -5.0%
0 0 n/a
0 0 n/a
MARGIN
% 38.6%
39.4% -0.8 n/a n/a
n/a n/a n/a n/a
0
0
0
W
REVENUE 0
0 n/a 0
0 n/a 0
0 n/a
EBITDA 0
0 n/a 0
0 n/a 0
0 n/a
MARGIN
% n/a
n/a n/a n/a
n/a n/a n/a n/a
n/a
0
0
1
--------------------
OTHER
REVENUE 0
0 n/a 0
0 n/a 13,620 12,622 7.9%
EBITDA 0
0 n/a 0
0 n/a (713) (392)-81.9%
MARGIN
% n/a
n/a n/a n/a
n/a n/a -5.2% -3.1% -2.1
(1) Hotel Results exclude 7 hotels
without prior year results and
4 hotels sold
during 2001 and 2002.
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Debt Portfolio Summary
As of September 30, 2002
UNAUDITED (in millions)
Interest Balance
Interest Avg
Maturity
Debt
Terms (in
% of Rate (in
millions) Portfolio
years)
------------------ -------- ---------- -------------------
-------
Floating Rate Debt:
Senior credit
facility
Revolving credit
facility VARIOUS
+160 $506
9% 4.10% 0.4 (1)
Term loan LIBOR +
160 174
3% 3.48% 0.4 (1)
---------- ---------- -------- -------
680 12% 3.95%
0.4
450M Euro
facility EURIBOR + 195
444 8%
5.24% 0.7
Mortgages and
other
Various 251
5% 5.59% 2.6
Interest rate
swaps
Various 1,001
19% 5.77%
---------- ---------- --------
Total Floating
2,376 44%
5.13% 0.9
Fixed Rate Debt:
Sheraton Holding
public debt
1,324 25%
6.52% 8.5 (3)
Senior notes
1,542 29%
7.05% 7.3 (4)
Convertible debt
313 6%
3.25% 1.7 (5)
Mortgages and
other
793 15%
7.38% 9.5
Interest rate
swaps
(1,001) -19% 7.26%
---------- ---------- --------
Total Fixed
2,971 56%
6.43% 7.7
---------- ---------- --------
Total Debt
5,347 100%
5.85% 5.9
========== ========== ========
---------------------------
Maturities
(1) (2)
---------------------------
(less than)1 year $1,270 $589
2-3 years 645 770
4-5 years 1,334 1,890
(greater than)5 years 2,098 2,098
-------- -------
$5,347 $5,347
======== =======
---------------------------
(1) Reflects original maturities, before
the effects of the $1.3
billion refinancing
of the senior credit facility completed in
October 2002.
The new facility matures October 9, 2006. After
giving effect
to the refinancing, the Company's debt at
September
30, 2002 remains at 44% floating rate and 56% fixed
rate with
a weighted average maturity of 6.4 years at 5.86%.
(2) Reflects maturities after giving
effect to the refinancing
completed
in October 2002 discussed in (1) above.
(3) Balance consists of outstanding
public debt of $1.297 billion
and a $27
million fair value adjustment primarily related to
fixed to floating
interest rate swaps terminated in September
2002.
(4) Balance consists of outstanding
public debt of $1.494 billion
and a $48
million fair market value adjustment primarily
related to
fixed to floating interest rate swaps terminated in
September
2002.
(5) Maturity date reflects the first
put date of the convertible
debt.
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Hotels under Renovation and/or without Comparable
Results & Other
Selected Items
For the Three Months Ended September 30, 2002
UNAUDITED
Properties under Significant Renovation or without Comparable
Results during the 3rd Quarter 2002
Property
Location
------------------------- ---------------
W Chicago - Lake Shore Chicago, IL
Sheraton Royal Denarau Nadi, Fiji
Resort
Westin Dublin Hotel
Dublin, Ireland
W New York - Times Square New York, NY
Selected Balance Sheet and Cash Flow Items:
Cash and cash equivalents
$229
Capital expenditures
$112
Debt level
$5,347
Shares Repurchased
-
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Summary of Portfolio by Properties & Rooms
As of September 30, 2002
UNAUDITED
PROPERTIES
Sheraton Westin Lux. Col./ Four
St. Regis Points
--------- ------- ----------- ------
Owned, leased &
consolidated JVs
68 38
18 7
Unconsolidated joint
ventures
29 9
2 2
----------------------------------------
Equity interest
properties
97 47
20 9
Managed (third-party owned)
141 39
18 22
Franchised, represented
& referral
158 26
12 114
----------------------------------------
Total
396 112
50 145
==== ====
=== ====
W Other
Total
-- ------
------
Owned, leased &
consolidated JVs
12
21
164
Unconsolidated joint
ventures
-
1
43
----------------------------------------
Equity interest
properties
12
22
207
Managed (third-party owned)
4
4
228
Franchised, represented
& referral
-
-
310
----------------------------------------
Total
16
26
745
===
===
====
ROOMS
Sheraton Westin Lux. Col./ Four
St. Regis Points
--------- ------- ----------- ------
Owned, leased &
consolidated JVs
26,989 14,398 3,731
1,782
Unconsolidated joint
ventures
11,510 3,763
441 328
----------------------------------------
Equity interest
properties
38,499 18,161 4,172
2,110
Managed (third-party owned) 47,423
19,257 3,474
4,101
Franchised, represented
& referral
46,682 8,493
1,473 20,692
----------------------------------------
Total
132,604 45,911 9,119
26,903
======= ====== ======
=======
W Other
Total
-- ------
------
Owned, leased &
consolidated JVs
4,391 5,103
56,394
Unconsolidated joint
ventures
-
132 16,174
-----------------------------------------
Equity interest
properties
4,391 5,235
72,568
Managed (third-party owned) 595
624 75,474
Franchised, represented
& referral
-
- 77,340
-----------------------------------------
Total
4,986 5,859
225,382
====== ======
========
|
