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,
--------------------------
--------------------------
%
%
2003 2002 Variance
2003 2002 Variance
------- ------- ---------
------- ------- ---------
Revenues
Owned, leased and
consolidated
joint venture
$735 $796
(7.7) hotels
$2,288 $2,386 (4.1)
Other hotel and
201 164
22.6 leisure(a)
531 478 11.1
------- ------- ---------
------- ------- ---------
936 960
(2.5)
2,819 2,864 (1.6)
Other revenues
from managed and
franchised
204 187
9.1 properties(b)
634 589 7.6
------- ------- ---------
------- ------- ---------
1,140 1,147
(0.6)
3,453 3,453
-
------- ------- ---------
------- ------- ---------
Costs and Expenses
Owned, leased and
consolidated
joint venture
577 583
1.0 hotels
1,781 1,739 (2.4)
Selling, general,
administrative
143 123
(16.3) and other(c)
411 318 (29.2)
Restructuring and
other special
(1) (2)
(50.0) credits, net
(1) (5) (80.0)
100 123
18.7 Depreciation
309 349 11.5
5
6 16.7 Amortization
18 16 (12.5)
------- ------- ---------
------- ------- ---------
824 833
1.1
2,518 2,417 (4.2)
Other expenses
from managed and
franchised
204 187
(9.1) properties(b) 634
589 (7.6)
------- ------- ---------
------- ------- ---------
1,028 1,020
(0.8)
3,152 3,006 (4.9)
112 127
(11.8) Operating income 301
447 (32.7)
Interest expense,
net of interest
income of $2, $0,
(69) (77)
10.4 $3, $1(d)
(219) (260) 15.8
Gain (loss) on
asset
dispositions and
(3)
6 n/m impairments, net
(179) 2
n/m
------- ------- ---------
------- ------- ---------
40 56
(28.6)
(97) 189 n/m
Income tax benefit
7
(3) n/m (expense)
113 (27) n/m
Minority equity in
-
- - net income
1 -
n/m
------- ------- ---------
------- ------- ---------
Income from
continuing
47 53
(11.3) operations
17 162 (89.5)
Discontinued
operations:
Loss from
operations, net
of taxes of $0,
$(1), $1
-
(1) n/m and $0 (e)
(1) (2) 50.0
Gain on
disposition, net
of taxes of $0,
$0, $40 and
1
- n/m $(104)
206 104 98.1
------- ------- ---------
------- ------- ---------
$48 $52
(7.7) Net income
$222 $264 (15.9)
======= ======= =========
======= ======= =========
Earnings Per Share
-- Basic
Continuing
$0.23 $0.27
(14.8) operations
$0.09 $0.81 (88.9)
Discontinued
0.01 (0.01)
n/m operations
1.01 0.50 n/m
------- ------- ---------
------- ------- ---------
$0.24 $0.26
(7.7) Net income
$1.10 $1.31 (16.0)
======= ======= =========
======= ======= =========
Earnings Per Share
-- Diluted
Continuing
$0.23 $0.26
(11.5) operations
$0.08 $0.79 (89.9)
Discontinued
-
- - operations
1.00 0.50 n/m
------- ------- ---------
------- ------- ---------
$0.23 $0.26
(11.5) Net income
$1.08 $1.29 (16.3)
======= ======= =========
======= ======= =========
Weighted average
203 201
number of Shares 202 201
======= =======
======= =======
Weighted average
number of Shares
208 204
assuming dilution 205 205
======= =======
======= =======
------------
(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) The Company includes in revenues the reimbursement
of costs
incurred on behalf of managed hotel
property owners and
franchisees with no added margin and
includes in costs and
expenses these reimbursed costs. These
costs relate primarily to
payroll costs at managed properties
where the Company is the
employer.
(c) Selling, general, administrative and other expenses
include the
cost of sales of VOIs and other costs
of vacation ownership
operations.
(d) Interest expense is net of $0 and $7 million of discontinued
operations allocations for the three
and nine month periods ended
September 30, 2003, respectively.
Interest expense is net of $4
million and $11 million of discontinued
operations allocations for
the three and nine month periods ended
September 30, 2002,
respectively. Interest expense for
the nine-months ended September
30, 2002 also includes $29 million
of early debt termination
costs.
(e) For the periods presented, the Principe is reported
as a
discontinued operation as a result
of the sale of this hotel with
no continuing involvement.
n/m = not meaningful
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
CONSOLIDATED BALANCE SHEETS
(In millions, except share data)
September 30, December 31,
2003 2002
------------- -------------
(Unaudited)
Assets
Current assets:
Cash and cash equivalents
$ 787 $
108
Restricted cash
84 108
Accounts receivable, net of allowance for
doubtful accounts of $52 and $45
398 398
Inventories
201 214
Prepaid expenses and other
123 108
------------ ------------
Total current assets
1,593 936
Investments
400 434
Plant, property and equipment, net
6,946 6,911
Assets held for sale (a)
72 839
Goodwill and intangible assets, net
2,476 2,570
Other assets
433 500
------------ ------------
$ 11,920 $ 12,190
============ ============
Liabilities and Stockholders' Equity
Current liabilities:
Short-term borrowings and current
maturities of long-term debt
(b) $ 442
$ 870
Accounts payable
140 171
Accrued expenses
618 723
Accrued salaries, wages and benefits
224 178
Accrued taxes and other
139 188
------------ ------------
Total current liabilities
1,563 2,130
Long-term debt (b)
4,443 4,449
Deferred income taxes
920 986
Other liabilities
568 538
------------ ------------
7,494 8,103
------------ ------------
Minority interest
38 39
------------ ------------
Exchangeable units and Class B preferred
shares, at redemption value of $38.50
33 51
------------ ------------
Commitments and contingencies
Stockholders' equity:
Class A exchangeable preferred shares of
the Trust; $0.01 par value; authorized
30,000,000 shares; outstanding 481,088
and 493,968 shares at September 30, 2003
and December 31, 2002, respectively
-- --
Corporation common stock; $0.01 par
value; authorized 1,050,000,000 shares;
outstanding 202,094,054 and 199,579,542
shares at September 30, 2003 and
December 31, 2002, respectively
2
2
Trust Class B shares of beneficial
interest; $0.01 par value; authorized
1,000,000,000 shares; outstanding
202,094,054 and 199,579,542 shares at
September 30, 2003 and December 31,
2002, respectively
2
2
Additional paid-in capital
4,962 4,905
Deferred compensation
(13) (14)
Accumulated other comprehensive income
(396) (474)
Accumulated deficit
(202) (424)
------------ ------------
Total stockholders' equity
4,355 3,997
------------ ------------
$ 11,920 $ 12,190
============ ============
-------------
(a) Represents the carrying value of the plant, property
and equipment
for the Principe, Sardinia Assets
and the 18 non-core domestic
hotels at December 31, 2002 and the
three remaining hotels in the
portfolio that were not sold as of
September 30, 2003.
(b) Excludes Starwood's share of unconsolidated joint
venture debt
aggregating approximately $413 million
and $355 million at
September 30, 2003 and December 31,
2002, respectively.
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Non-GAAP to GAAP Reconciliations - Historical Data
(In millions)
Three Months Ended
Nine Months Ended
September 30,
September 30,
----------------------------
------------------------
%
2003 2002 % Variance
2003 2002 Variance
------- ------- -----------
------- ------ ---------
Reconciliation of
Net Income to
EBITDA and
Adjusted EBITDA
$48 $52
(7.7) Net income
$222 $264 (15.9)
Interest
76 85
(10.6) expense(a)
242 284 (14.8)
Income tax
(benefit)
(7)
2 n/m expense
(b) (72) (77)
6.5
107 131
(18.3) Depreciation(c) 330
369 (10.6)
5
6 (16.7) Amortization
18 16 12.5
------- ------- -----------
------- ------ ---------
229 276
(17.0) EBITDA
740 856 (13.6)
(Gain) loss on
asset
dispositions and
3
(6) n/m impairments,
net 179 (2)
n/m
Discontinued
(1) (4)
75.0 operations(d) (254)
(12) n/m
Restructuring and
other special
(1) (2)
50.0 credits, net
(1) (5) 80.0
Foreign exchange
gains from
-
3 n/m Argentina
- (30) n/m
Costs associated
with construction
3
5 (40.0) remediation
3 5 (40.0)
------- ------- -----------
------- ------ ---------
$233 $272
(14.3) Adjusted EBITDA $667 $812
(17.9)
======= ======= ===========
======= ====== =========
(a) Includes $5 and $13 million of interest expense related
to
unconsolidated joint ventures for
the three and nine month periods
ended September 30, 2003 and $4 and
$12 million for the three and
nine month periods ended September
30, 2002. Also includes $0 and
$7 million of interest expense allocated
to discontinued
operations for the three and nine
month periods ended September
30, 2003 and $4 million and $11 million
of interest expense
allocated to discontinued operations
for the three and nine month
periods ended September 30, 2002,
respectively.
(b) Includes $0 million and $41 million of taxes recorded,
respectively, in discontinued operations
for the three and nine
months ended September 30, 2003 and
$(1) and $(104) of taxes/(tax
benefits) recorded in discontinued
operations for the three and
nine months ended September 30, 2002,
respectively.
(c) Includes $7 million and $20 million of Starwood's
share of
depreciation expense of unconsolidated
joint ventures for the
three and nine month periods ended
September 30, 2003 and $6
million and $17 million for the three
and nine month periods ended
September 30, 2002. Also includes
$0 million and $1 million of
depreciation expense included in discontinued
operations for the
three and nine months ended September
30, 2003 and $2 million and
$3 million for the three and nine
month periods ended September
30, 2002.
(d) Excludes the interest expense, taxes, and depreciation
balances
already added back as noted in (a),
(b) and (c) above. Includes
the reversal of a $49 million (pre-tax)
liability, in the nine
months ended September 30, 2003, related
to the 1999 divestiture
of the Company's gaming business which
is no longer deemed
necessary.
Three Months Nine Months
Ended
Ended
September 30, September 30,
---------------- ----------------
2003 2002 2003
2002
------- ------ ------- ------
Cash Flow Data
Net income
$ 48 $ 52 $ 222
$ 264
Exclude:
Discontinued operations, net
(1) 1 (205)
(102)
------- ------ ------- ------
Income from continuing operations
47 53
17 162
Adjustment to income from continuing
operations and changes in working
capital
249 195 499
387
------- ------ ------- ------
Cash from continuing operations
296 248 516
549
Cash from discontinued
operations
- 4
10 12
------- ------ ------- ------
Cash from operating activities
$ 296 $ 252 $ 526 $
561
======= ====== ======= ======
Cash from (used for) investing
activities
$ 305 $ (109) $ 834 $ (227)
======= ====== ======= ======
Cash used for financing activities $
(136) $ (127) $ (690) $ (319)
======= ====== ======= ======
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Non-GAAP
to GAAP Reconciliations - Future Performance
(In millions)
Twelve
Twelve Months
Months Ended
Three Months Twelve Months Ended
December
Ended Ended
December 31,
December 31, December 31, 31, 2004
2004
2003 2003
(Low End) (High End)
------------ ------------- ----------- -----------
Net income
$ 68 $
290 $ 180 $
200
Interest expense
77 319
295 295
Income tax expense
(benefit)
(3) (75)
10 15
Depreciation and
amortization
118 464
465 465
----------- ------------ ---------- ----------
EBITDA
260 998
950 975
Loss on asset
dispositions and
impairments, net
- 179
-- --
Discontinued
operations
- (254)
-- --
Restructuring and
other special
credits
- (1)
- --
Costs associated
with construction
remediation
-
3 -
--
----------- ------------ ---------- ----------
Adjusted EBITDA $
260 $ 925 $
950 $ 975
=========== ============ ========== ==========
-0-
STARWOOD HOTELS & RESORTS WORLDWIDE,
INC.
Hotel Resorts - Same Store (1)
For the Three Months Ended September 30, 2003
UNAUDITED
WORLDWIDE
-----------------------------
2003 2002 Var.
---------- -------- ---------
140 Hotels
-----------------------------
OWNED HOTELS
REVPAR ($)
99.43 95.25 4.4%
ADR ($)
144.81 145.23 -0.3%
OCCUPANCY (%)
68.7% 65.6% 3.1
60
-----------------------------
SHERATON
REVPAR ($)
81.34 78.95 3.0%
ADR ($)
122.23 124.19 -1.6%
OCCUPANCY (%)
66.6% 63.6% 3.0
36
-----------------------------
WESTIN
REVPAR ($)
111.57 107.08 4.2%
ADR ($)
152.92 151.82 0.7%
OCCUPANCY (%)
73.0% 70.5% 2.5
12
-----------------------------
LUXURY COLLECTION
REVPAR ($)
169.67 161.33 5.2%
ADR ($)
305.48 309.79 -1.4%
OCCUPANCY (%)
55.5% 52.1% 3.4
12
-----------------------------
W
REVPAR ($)
142.52 125.56 13.5%
ADR ($)
192.61 190.81 0.9%
OCCUPANCY (%)
74.0% 65.8% 8.2
20
-----------------------------
OTHER
REVPAR ($)
78.44 80.05 -2.0%
ADR ($)
112.50 115.63 -2.7%
OCCUPANCY (%)
69.7% 69.2% 0.5
NORTH AMERICA
-----------------------------
2003 2002 Var.
---------- -------- ---------
95 Hotels
-----------------------------
OWNED HOTELS
REVPAR ($)
98.81 95.75 3.2%
ADR ($)
138.20 140.81 -1.9%
OCCUPANCY (%)
71.5% 68.0% 3.5
37
-----------------------------
SHERATON
REVPAR ($)
86.46 85.23 1.4%
ADR ($)
121.85 125.97 -3.3%
OCCUPANCY (%)
71.0% 67.7% 3.3
22
-----------------------------
WESTIN
REVPAR ($)
99.67 96.45 3.3%
ADR ($)
132.22 133.63 -1.1%
OCCUPANCY (%)
75.4% 72.2% 3.2
5
-----------------------------
LUXURY COLLECTION
REVPAR ($)
155.56 148.10 5.0%
ADR ($)
274.46 296.11 -7.3%
OCCUPANCY (%)
56.7% 50.0% 6.7
12
-----------------------------
W
REVPAR ($)
142.52 125.56 13.5%
ADR ($)
192.61 190.81 0.9%
OCCUPANCY (%)
74.0% 65.8% 8.2
19
-----------------------------
OTHER
REVPAR ($)
77.72 83.62 -7.1%
ADR ($)
115.23 122.45 -5.9%
OCCUPANCY (%)
67.5% 68.3% -0.8
INTERNATIONAL(2)
-----------------------------
2003 2002 Var.
---------- -------- ---------
45 Hotels
-----------------------------
OWNED HOTELS
REVPAR ($)
101.16 93.84 7.8%
ADR ($)
166.90 159.95 4.3%
OCCUPANCY (%)
60.6% 58.7% 1.9
23
-----------------------------
SHERATON
REVPAR ($)
71.03 66.28 7.2%
ADR ($)
123.16 119.82 2.8%
OCCUPANCY (%)
57.7% 55.3% 2.4
14
-----------------------------
WESTIN
REVPAR ($)
149.03 142.55 4.5%
ADR ($)
228.23 219.16 4.1%
OCCUPANCY (%)
65.3% 65.0% 0.3
7
-----------------------------
LUXURY COLLECTION
REVPAR ($)
191.14 181.48 5.3%
ADR ($)
355.21 328.65 8.1%
OCCUPANCY (%)
53.8% 55.2% -1.4
W
REVPAR ($)
ADR ($)
OCCUPANCY (%)
1
-----------------------------
OTHER
REVPAR ($)
83.44 55.71 49.8%
ADR ($)
97.57 73.63 32.5%
OCCUPANCY (%)
85.5% 75.7% 9.8
(1) Hotel Results exclude 25 hotels sold or closed during
2002 and 2003
(2) See next page for breakdown by division.
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Hotel Resorts - Same Store (1)
For the Three Months Ended September 30, 2003
UNAUDITED
EUROPE
--------------------------------
2003 2002
Var.
---------- ---------- ----------
29 Hotels
--------------------------------
OWNED HOTELS
REVPAR ($)
143.45 135.22
6.1%
ADR ($)
227.76 214.20
6.3%
OCCUPANCY (%)
63.0% 63.1%
-0.1
11
--------------------------------
SHERATON
REVPAR ($)
98.68 92.31
6.9%
ADR ($)
151.26 146.01
3.6%
OCCUPANCY (%)
65.2% 63.2%
2.0
11
--------------------------------
WESTIN
REVPAR ($)
181.26 172.21
5.3%
ADR ($)
282.51 258.11
9.5%
OCCUPANCY (%)
64.2% 66.7%
-2.5
7
--------------------------------
LUXURY COLLECTION
REVPAR ($)
191.14 181.48
5.3%
ADR ($)
355.21 328.65
8.1%
OCCUPANCY (%)
53.8% 55.2%
-1.4
OTHER
REVPAR ($)
ADR ($)
OCCUPANCY (%)
LATIN AMERICA
--------------------------------
2003 2002 Var.
---------- ---------- ----------
12 Hotels
--------------------------------
OWNED HOTELS
REVPAR ($)
44.84 45.72
-1.9%
ADR ($)
88.77 93.87
-5.4%
OCCUPANCY (%)
50.5% 48.7%
1.8
9
--------------------------------
SHERATON
REVPAR ($)
40.47 42.99
-5.9%
ADR ($)
87.22 92.92
-6.1%
OCCUPANCY (%)
46.4% 46.3%
0.1
3
--------------------------------
WESTIN
REVPAR ($)
63.76 58.71
8.6%
ADR ($)
93.32 97.34
-4.1%
OCCUPANCY (%)
68.3% 60.3%
8.0
LUXURY COLLECTION
REVPAR ($)
ADR ($)
OCCUPANCY (%)
OTHER
REVPAR ($)
ADR ($)
OCCUPANCY (%)
ASIA PACIFIC
--------------------------------
2003 2002 Var.
---------- ---------- ----------
4 Hotels
--------------------------------
OWNED HOTELS
REVPAR ($)
94.65 67.26
40.7%
ADR ($)
117.91 97.08
21.5%
OCCUPANCY (%)
80.3% 69.3%
11.0
3
--------------------------------
SHERATON
REVPAR ($)
101.53 74.48
36.3%
ADR ($)
131.78 114.08
15.5%
OCCUPANCY (%)
77.0% 65.3%
11.7
WESTIN
REVPAR ($)
ADR ($)
OCCUPANCY (%)
LUXURY COLLECTION
REVPAR ($)
ADR ($)
OCCUPANCY (%)
1
--------------------------------
OTHER
REVPAR ($)
83.44 55.71
49.8%
ADR ($)
97.57 73.63
32.5%
OCCUPANCY (%)
85.5% 75.7%
9.8
(1) Hotel Results exclude 25 hotels sold or closed during
2002 and 2003
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Hotel Resorts - Same Store (1)
For the Nine Months Ended September 30, 2003
UNAUDITED
WORLDWIDE
--------------------------------
2003 2002
Var.
---------- ---------- ----------
140 Hotels
--------------------------------
OWNED HOTELS
REVPAR ($)
96.91 97.38
-0.5%
ADR ($)
149.83 151.04
-0.8%
OCCUPANCY
(%) 64.7% 64.5%
0.2
60
--------------------------------
SHERATON
REVPAR ($)
78.01 80.44
-3.0%
ADR ($)
125.38 129.00
-2.8%
OCCUPANCY
(%) 62.2% 62.4%
-0.2
36
--------------------------------
WESTIN
REVPAR ($)
110.91 109.03
1.7%
ADR ($)
157.91 155.30
1.7%
OCCUPANCY
(%) 70.2% 70.2%
0.0
12
--------------------------------
LUXURY COLLECTION
REVPAR ($)
184.51 191.37
-3.6%
ADR ($)
327.12 328.86
-0.5%
OCCUPANCY
(%) 56.4% 58.2%
-1.8
12
--------------------------------
W
REVPAR ($)
136.69 126.77
7.8%
ADR ($)
197.47 199.08
-0.8%
OCCUPANCY
(%) 69.2% 63.7%
5.5
20
--------------------------------
OTHER
REVPAR ($)
68.24 71.35
-4.4%
ADR ($)
109.86 112.45
-2.3%
OCCUPANCY
(%) 62.1% 63.5%
-1.4
NORTH AMERICA
--------------------------------
2003 2002
Var.
---------- ---------- ----------
95 Hotels
--------------------------------
OWNED HOTELS
REVPAR ($)
97.30 99.09
-1.8%
ADR ($)
145.43 149.85
-2.9%
OCCUPANCY
(%) 66.9% 66.1%
0.8
37
--------------------------------
SHERATON
REVPAR ($)
82.51 86.34
-4.4%
ADR ($)
126.31 132.75
-4.9%
OCCUPANCY
(%) 65.3% 65.0%
0.3
22
--------------------------------
WESTIN
REVPAR ($)
100.86 100.62
0.2%
ADR ($)
139.22 140.44
-0.9%
OCCUPANCY
(%) 72.4% 71.6%
0.8
5
--------------------------------
LUXURY COLLECTION
REVPAR ($)
193.75 208.88
-7.2%
ADR ($)
323.15 349.15
-7.4%
OCCUPANCY
(%) 60.0% 59.8%
0.2
12
--------------------------------
W
REVPAR ($)
136.69 126.77
7.8%
ADR ($)
197.47 199.08
-0.8%
OCCUPANCY
(%) 69.2% 63.7%
5.5
19
--------------------------------
OTHER
REVPAR ($)
68.24 73.87
-7.6%
ADR ($)
113.69 119.17
-4.6%
OCCUPANCY
(%) 60.0% 62.0%
-2.0
INTERNATIONAL(2)
--------------------------------
2003 2002
Var.
---------- ---------- ----------
45 Hotels
--------------------------------
OWNED HOTELS
REVPAR ($)
95.79 92.45
3.6%
ADR ($)
164.30 154.86
6.1%
OCCUPANCY
(%) 58.3% 59.7%
-1.4
23
--------------------------------
SHERATON
REVPAR ($)
68.89 68.46
0.6%
ADR ($)
123.18 120.28
2.4%
OCCUPANCY
(%) 55.9% 56.9%
-1.0
14
--------------------------------
WESTIN
REVPAR ($)
143.31 136.99
4.6%
ADR ($)
227.13 209.41
8.5%
OCCUPANCY
(%) 63.1% 65.4%
-2.3
7
--------------------------------
LUXURY COLLECTION
REVPAR ($)
170.46 164.74
3.5%
ADR ($)
334.21 295.72
13.0%
OCCUPANCY
(%) 51.0% 55.7%
-4.7
W
REVPAR ($)
ADR ($)
OCCUPANCY
(%)
1
--------------------------------
OTHER
REVPAR ($)
68.19 54.21
25.8%
ADR ($)
89.13 73.80
20.8%
OCCUPANCY
(%) 76.5% 73.5%
3.0
(1) Hotel Results exclude 25 hotels sold or closed during
2002 and
2003
(2) See next page for breakdown by division.
-0-
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Hotel Resorts - Same Store (1)
For the Nine Months Ended September 30, 2003
UNAUDITED
EUROPE
--------------------------------
2003 2002
Var.
---------- ---------- ----------
29 Hotels
--------------------------------
OWNED HOTELS
REVPAR ($)
132.86 126.07
5.4%
ADR ($)
224.32 200.34
12.0%
OCCUPANCY
(%) 59.2% 62.9%
-3.7
11
--------------------------------
SHERATON
REVPAR ($)
94.88 91.57
3.6%
ADR ($)
155.17 141.79
9.4%
OCCUPANCY
(%) 61.1% 64.6%
-3.5
11
--------------------------------
WESTIN
REVPAR ($)
166.07 154.42
7.5%
ADR ($)
274.54 240.92
14.0%
OCCUPANCY
(%) 60.5% 64.1%
-3.6
7
--------------------------------
LUXURY COLLECTION
REVPAR ($)
170.46 164.74
3.5%
ADR ($)
334.21 295.72
13.0%
OCCUPANCY
(%) 51.0% 55.7%
-4.7
OTHER
REVPAR ($)
ADR ($)
OCCUPANCY
(%)
LATIN AMERICA
--------------------------------
2003 2002 Var.
---------- ---------- ----------
12 Hotels
--------------------------------
OWNED HOTELS
REVPAR ($)
51.49 56.58
-9.0%
ADR ($)
97.61 106.73
-8.5%
OCCUPANCY
(%) 52.7% 53.0%
-0.3
9
--------------------------------
SHERATON
REVPAR ($)
44.32 50.02
-11.4%
ADR ($)
90.73 100.79 -10.0%
OCCUPANCY
(%) 48.8% 49.6%
-0.8
3
--------------------------------
WESTIN
REVPAR ($)
83.14 87.86
-5.4%
ADR ($)
118.80 127.05
-6.5%
OCCUPANCY
(%) 70.0% 69.2%
0.8
LUXURY COLLECTION
REVPAR ($)
ADR ($)
OCCUPANCY
(%)
OTHER
REVPAR ($)
ADR ($)
OCCUPANCY
(%)
ASIA PACIFIC
--------------------------------
2003 2002
Var.
---------- ---------- ----------
4 Hotels
--------------------------------
OWNED HOTELS
REVPAR ($)
77.53 62.95
23.2%
ADR ($)
109.80 95.38
15.1%
OCCUPANCY
(%) 70.6% 66.0%
4.6
3
--------------------------------
SHERATON
REVPAR ($)
83.30 68.42
21.7%
ADR ($)
124.39 111.56
11.5%
OCCUPANCY
(%) 67.0% 61.3%
5.7
WESTIN
REVPAR ($)
ADR ($)
OCCUPANCY
(%)
LUXURY COLLECTION
REVPAR ($)
ADR ($)
OCCUPANCY
(%)
1
--------------------------------
OTHER
REVPAR ($)
68.19 54.21
25.8%
ADR ($)
89.13 73.80
20.8%
OCCUPANCY
(%) 76.5% 73.5%
3.0
(1) Hotel Results exclude 25 hotels sold or closed during
2002 and
2003
-0-
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Debt Portfolio Summary
As of September 30, 2003
UNAUDITED
Avg
Balance
Maturity
Interest (in % of
Interest (in
Debt
Terms millions) Portfolio Rate
years)
----------------- -------- ---------- ---------- --------
------------
Floating Rate
Debt:
Senior credit
facility
Revolving credit CBA +
facility
187.5 $22
1% 4.61% 3.0
Term loan
LIBOR +
187.5 300
6% 3.00% 2.3
---------- ---------- -------- ---------
322 7%
3.11% 2.3
Mortgages and
other
Various 237
5% 4.79% 1.6
Interest rate
swaps
Various 1,003
20% 5.08%
---------- ---------- --------
Total Floating
1,562 32%
4.63% 2.0
Fixed Rate Debt:
Sheraton Holding
public debt (1)
1,322 27%
6.52% 7.5
Senior notes (2)
1,541 32%
7.04% 6.3
Convertible debt
- Series B
324 7%
3.25% 3.0 (3)
Convertible debt
- 2003
360 7%
3.50% 2.6
Mortgages and
other
779 15%
7.14% 8.4
Interest rate
swaps
(1,003) -20% 7.25%
---------- ---------- --------
Total Fixed
3,323 68%
5.91% 6.5
---------- ---------- --------
Total Debt
$4,885 100%
5.50% 6.0
========== ========== ========
--------------------------------------
Maturities
--------------------------------------
less than 1 year $
442
2-3 years
1,123
4-5 years
1,245
greater than 5 years
2,075
---------------
$ 4,885
===============
--------------------------------------
(1) Balance consists of outstanding public debt of $1.297
billion and
a $16 million fair value adjustment related to the unamortized
gain on
fixed to floating interest rate swaps terminated in September
2002 and
a $9 million fair value adjustment related to current
fixed to
floating interest rate swaps.
(2) Balance consists of outstanding public debt of $1.495
billion and
a $32 million fair value adjustment related to the unamortized
gain on
fixed to floating interest rate swaps terminated in September
2002 and
a $14 million fair value adjustment related to current
fixed to
floating interest rate swaps.
(3) Average maturity reflects the maturity date of the
revolving
credit facility which would be used to refinance the
amount put to the
Company.
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Hotels without Comparable
Results & Other Selected Items
As of September 30, 2003
UNAUDITED ($ millions)
Properties sold or closed in 2003:
Property
Location
--------
--------
Lenox Inn
Atlanta, GA
Sheraton Mofarrej
Sao Paulo, Brazil
Hotel Cala di Volpe
Costa Smeralda, Italy
Hotel Pitrizza
Costa Smeralda, Italy
Hotel Romazzino
Costa Smeralda, Italy
Cervo Hotel & Conference Center
Costa Smeralda, Italy
Hotel Principe di Savoia
Milan, Italy
Hilton Novi
Novi, MI
Westin Southfield
Southfield, MI
Residence Inn Tyson's Corner
Vienna, VA
Sheraton Buckhead
Atlanta, GA
Sheraton College Park
Beltsville, MD
Sheraton Chicago Northwest
Arlington Heights, IL
Sheraton Norfolk
Norfolk, VA
Hilton Sonoma County
Santa Rosa, CA
Westin Stamford
Stamford, CT
Wayfarer Inn
Bedford, NH
Sheraton Ferncroft
Danvers, MA
Sheraton Danbury
Danbury, CT
Sheraton Gainesville
Gainesville, FL
Baltimore Marriott
Baltimore, MD
Arlington Marriott
Arlington, VA
North Charleston Sheraton
Charleston, SC
Properties sold or closed in 2002:
Property
Location
--------
--------
Clarion Hotel Allentown
Allentown, PA
Doubletree Hotel Minneapolis Airport Minneapolis,
MN
Selected Balance Sheet and Cash Flow Items:
Cash and cash equivalents (including restricted cash of
$84 million)
$ 871
Debt level
$ 4,885
Revenues and Expenses Associated with Assets Held For
Sale or Sold in
2003 (1):
Q1 Q2
Q3 Q4 Full Year
-----------------------------------------------
2003
Revenues
$ 49 $ 68 $
14 N/A $ 131
Expenses
$ 43 $ 50 $
11 N/A $ 104
2002
Revenues
$ 49 $ 72 $ 103
$ 55 $ 279
Expenses
$ 40 $ 50 $
59 $ 43 $ 192
(1) Results consist of 20 hotels (excludes the Hotel Principe
di
Savoia reported in discontinued operations)
that have been sold in
2003 and 2 hotels that are currently
held for sale. These amounts
are included in the revenues and expenses
from owned, leased and
consolidated joint venture hotels.
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Capital Expenditures
For the Three
and Nine Months Ended September 30, 2003
UNAUDITED ($ millions)
QTD YTD
Capital Expenditures:
Owned, Leased and Consolidated Joint
Venture Hotels
$ 43 $
101
Corporate/IT
6 18
---------- ---------
Subtotal
49 119
Vacation Ownership Capital Expenditures:
Capital expenditures (includes land
acquisition)
10 40
Inventory
22 64
---------- ---------
Subtotal
32 104
Development Capital (1)
13 50
---------- ---------
Total Capital Expenditures
$ 94 $
273
========== =========
(1) Includes St. Regis San Francisco additions of $10
QTD and $36 YTD
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Summary of Portfolio by Properties & Rooms (1)
As of September 30, 2003
UNAUDITED
PROPERTIES
------------------------------------
Lux. Col./
Ownership Type
Sheraton Westin St. Regis
--------------------------------- ----------- -----------
-----------
Owned, leased & consolidated JVs
58 36
14
Unconsolidated joint ventures
28 10
2
----------- ----------- -----------
Equity interest properties
86 46
16
Managed (third-party owned)
144 46
21
Franchised, represented & referral
164 28
12
----------- ----------- -----------
Total
394 120
49
=========== =========== ===========
ROOMS
------------------------------------
Lux. Col./
Ownership Type
Sheraton Westin St. Regis
--------------------------------- ----------- -----------
-----------
Owned, leased & consolidated JVs
24,081 13,638
3,056
Unconsolidated joint ventures
10,515 4,495
441
----------- ----------- -----------
Equity interest properties
34,596 18,133
3,497
Managed (third-party owned)
49,617 23,383
3,317
Franchised, represented & referral
49,808 9,430
1,412
----------- ----------- -----------
Total
134,021 50,946
8,226
=========== =========== ===========
PROPERTIES
------------------------------------
Four
Ownership Type
Points W Other
Total
--------------------------------- --------- ------ ---------
---------
Owned, leased & consolidated JVs
7 12
13 140
Unconsolidated joint ventures
1 -
1 42
--------- ------ --------- ---------
Equity interest properties
8 12
14 182
Managed (third-party owned)
21 5
4 241
Franchised, represented & referral
109 -
- 313
--------- ------ --------- ---------
Total
138 17
18 736
========= ====== ========= =========
ROOMS
------------------------------------
Four
Ownership Type
Points W Other
Total
--------------------------------- --------- ------ ---------
---------
Owned, leased & consolidated JVs
1,769 4,371 3,250 50,165
Unconsolidated joint ventures
128 -
132 15,711
--------- ------ --------- ---------
Equity interest properties
1,897 4,371 3,382 65,876
Managed (third-party owned)
3,803 856 1,029
82,005
Franchised, represented & referral 19,284
- - 79,934
--------- ------ --------- ---------
Total
24,984 5,227 4,411 227,815
========= ====== ========= =========
(1) Summary reflects the sale of the Sheraton North Charleston
Hotel
in October 2003, which is now franchised. |