STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
(In millions, except per Share data)
Three Months Ended
Six Months Ended
June 30,
June 30,
----------------------
-------------------------
%
%
2005 2004 Variance
2005 2004 Variance
------ ------ --------
------- ------- ---------
Revenues
Owned, leased and
consolidated joint
$939 $868
8.2 venture hotels $1,752
$1,637 7.0
Vacation ownership
and residential
233 140
66.4 sales and services 464
268 73.1
Management fees,
franchise fees and
119 104
14.4 other income
223 194 14.9
Other revenues from
managed and
franchised
268 251
6.8 properties (a)
526 491 7.1
------ ------ --------
------- ------- ---------
1,559 1,363 14.4
2,965 2,590 14.5
Costs and Expenses
Owned, leased and
consolidated joint
675 640
(5.5) venture hotels 1,316
1,247 (5.5)
Vacation ownership
167 105 (59.0)
and residential 334
202 (65.3)
Selling, general,
administrative and
94 88
(6.8) other
176 170 (3.5)
101 101
-- Depreciation
206 203 (1.5)
4 5
20.0 Amortization
9 9
--
Other expenses from
managed and
franchised
268 251
(6.8) properties(a)
526 491 (7.1)
------ ------ --------
------- ------- ---------
1,309 1,190 (10.0)
2,567 2,322 (10.6)
250 173
44.5 Operating income
398 268 48.5
Gain on sale of VOI
-- 8
(100.0) notes receivable
-- 8 (100.0)
Equity earnings from
unconsolidated
18 12
50.0 ventures, net
31 16 93.8
Interest expense, net
of interest income
(60) (65)
7.7 of $3, $1, $5 and $1 (122) (129)
5.4
Loss on asset
dispositions and
(17) (3)
n/m impairments, net
(16) (4) n/m
------ ------ --------
------- ------- ---------
Income from
continuing
operations before
taxes and minority
191 125
52.8 equity
291 159 83.0
(47) (5)
n/m Income tax expense (68)
(7) n/m
Minority equity in
1 --
n/m net loss
1 1
--
------ ------ --------
------- ------- ---------
Income from
continuing
145 120
20.8 operations
224 153 46.4
Discontinued
operations:
Gain on
-- 34
(100.0) disposition(b)
-- 35 (100.0)
------ ------ --------
------- ------- ---------
$145 $154 (5.8)
Net income
$224 $188 19.1
====== ====== ========
======= ======= =========
Earnings Per Share -
Basic
$0.67 $0.57 17.5
Continuing operations $1.04 $0.74
40.5
Discontinued
-- 0.17 (100.0)
operations
-- 0.17 (100.0)
------ ------ --------
------- ------- ---------
$0.67 $0.74 (9.5) Net income
$1.04 $0.91 14.3
====== ====== ========
======= ======= =========
Earnings Per Share -
Diluted
$0.65 $0.56 16.1
Continuing operations $1.01 $0.72
40.3
Discontinued
-- 0.16 (100.0)
operations
-- 0.16 (100.0)
------ ------ --------
------- ------- ---------
$0.65 $0.72 (9.7) Net income
$1.01 $0.88 14.8
====== ====== ========
======= ======= =========
Weighted average
216 208
number of Shares 214
206
====== ======
======= =======
Weighted average
number of Shares
223 215
assuming dilution 222
213
====== ======
======= =======
(a) The Company includes in revenues the reimbursement
of costs
incurred on behalf of managed hotel
property owners and
franchisees with no added margin and
includes in costs and
expenses these reimbursed costs. These
costs relate primarily to
payroll costs at managed properties
where the Company is the
employer.
(b) 2004 activity represents the reversal of reserves
that are no
longer required as the related contingencies
have been resolved
and the favorable resolution of certain
tax matters related to the
1999 divestiture of the Company's
gaming business.
n/m = not meaningful
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
CONSOLIDATED BALANCE SHEETS
(in millions, except share data)
June 30, December 31,
2005 2004
------------ ------------
Assets
Current assets:
Cash and cash equivalents
$381 $326
Restricted cash
509 347
Accounts receivable, net of allowance for
doubtful accounts of $61 and $58
598 482
Inventories
316 371
Prepaid expenses and other
197 157
------------ ------------
Total current assets
2,001 1,683
Investments
432 453
Plant, property and equipment, net
6,778 6,997
Goodwill and intangible assets, net
2,532 2,544
Other assets (a)
653 621
------------ ------------
$12,396 $12,298
============ ============
Liabilities and Stockholders' Equity
Current liabilities:
Short-term borrowings and current maturities
of long-term debt (b)
$634 $619
Accounts payable
154 200
Accrued expenses
719 872
Accrued salaries, wages and benefits
248 299
Accrued taxes and other
158 138
------------ ------------
Total current liabilities
1,913 2,128
Long-term debt (b)
3,725 3,823
Deferred income taxes
851 880
Other liabilities
624 652
------------ ------------
7,113 7,483
Minority interest
24 27
Exchangeable units and Class B preferred
shares, at redemption value of $38.50
-- --
Commitments and contingencies
Stockholders' equity:
Class A exchangeable preferred shares of
the Trust; $0.01 par value; authorized
30,000,000 shares; outstanding 564,397
and 597,825 shares at June 30, 2005
and
December 31, 2004, respectively
-- --
Corporation common stock; $0.01 par value;
authorized 1,050,000,000 shares;
outstanding 216,975,974 and 208,730,800
shares at June 30, 2005 and December
31,
2004, respectively
2 2
Trust Class B shares of beneficial
interest; $0.01 par value; authorized
1,000,000,000 shares; outstanding
216,975,974 and 208,730,800 shares
at
June 30, 2005 and December 31, 2004,
respectively
2 2
Additional paid-in capital
5,488 5,121
Deferred compensation
(69) (14)
Accumulated other comprehensive loss
(320) (255)
Retained earnings (accumulated deficit)
156 (68)
------------ ------------
Total stockholders' equity
5,259 4,788
------------ ------------
$12,396 $12,298
============ ============
(a) Includes restricted cash of $9 million and $10 million
at June 30, 2005 and December 31, 2004, respectively.
(b) Excludes Starwood's share of unconsolidated joint
venture debt aggregating approximately $391 million and $438 million at
June 30, 2005 and December 31, 2004, respectively.
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Non-GAAP to GAAP Reconciliations - Historical Data
(in millions)
Three Months Ended
Six Months Ended
June 30,
June 30,
---------------------
---------------------
%
%
2005 2004 Variance
2005 2004 Variance
----- ----- ---------
----- ----- ---------
Reconciliation of Net
Income to EBITDA and
Adjusted EBITDA
$145 $154 (5.8) Net
income
$224 $188 19.1
68 70
2.9 Interest expense(a)
137 141 2.8
Income tax (benefit)
47 (29)
n/m expense(b)
68 (27) n/m
108 109
0.9 Depreciation(c)
222 219 (1.4)
6 6
-- Amortization(d)
12 12 --
----- ----- ---------
----- ----- ---------
374 310
20.6 EBITDA
663 533 24.4
Adjustment to costs
associated with
-- (3) (100.0)
construction remediation -- (4)
(100.0)
Loss on asset dispositions
17 3
n/m and impairments, net
16 4 n/m
-- --
-- Discontinued operations(e) -- (1)
(100.0)
----- ----- ---------
----- ----- ---------
$391 $310 26.1
Adjusted EBITDA
$679 $532 27.6
===== ===== =========
===== ===== =========
(a) Includes $5 and $4 million of interest expense related
to
unconsolidated joint ventures for
the three months ended June 30,
2005 and 2004, respectively, and $10
and $11 million for the six
months ended June 30, 2005 and 2004,
respectively.
(b) Includes $0 and $(34) million of tax expense (benefit)
recorded in discontinued operations for the three months ended June 30,
2005 and 2004, respectively, and $0 and $(34) million for the six months
ended June 30, 2005 and 2004, respectively.
(c) Includes $7 and $8 million of Starwood's share of
depreciation
expense of unconsolidated joint ventures
for the three months
ended June 30, 2005 and 2004, respectively,
and $16 and $16
million for the six months ended June
30, 2005 and 2004,
respectively.
(d) Includes $2 and $1 million of Starwood's share of
amortization expense of unconsolidated joint ventures for the three months
ended June 30, 2005 and 2004, respectively, and $3 and $3 million for the
six months ended June 30, 2005 and 2004, respectively.
(e) Excludes the taxes already added back as noted in
(b) above.
Three Months
Six Months Ended
Ended June 30,
June 30,
---------------
----------------
2005 2004
2005 2004
------- -------
------- -------
Cash Flow Data
$145 $154 Net income
$224 $188
Exclude:
-- (34)
Discontinued operations, net
-- (35)
------- -------
------- -------
145 120 Income
from continuing operations 224
153
(103) (44) Increase in restricted
cash
(161) (130)
Adjustments to income from continuing
operations, changes in working
129 43
capital, and other
167 158
------- -------
------- -------
171 119
Cash from continuing operations
230 181
-- --
Cash from discontinued operations --
1
------- -------
------- -------
$171 $119 Cash from operating
activities $230
$182
======= =======
======= =======
$(82) $(64) Cash used for investing
activities $(151) $(244)
======= =======
======= =======
$(13) $(128) Cash used for financing activities
$(11) $(201)
======= =======
======= =======
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Non-GAAP
to GAAP Reconciliations - Future Performance
(In millions)
Year Ended
December 31, 2005
Net income before special items
$484
Special items (see page 7)
(9)
Net income
$475
EPS before special items
$2.18
Special items (see page 7)
(0.04)
EPS
$2.14
Three Months Ended
Year Ended
September 30, 2005
December 31, 2005
------------------
-----------------
$114 Net Income
$475
72 Interest expense
281
38 Income tax expense
151
118 Depreciation and amortization
472
-----------------
-----------------
342 EBITDA
1,379
Loss on asset dispositions and
-- impairments, net
16
-----------------
-----------------
$342 Adjusted EBITDA
$1,395
=================
=================
Three Months Ended
Year Ended
September 30, 2004
December 31, 2004
-------------------
-----------------
$107 Net income
$395
68 Interest expense
275
35 Income tax expense
34
111 Depreciation
445
6 Amortization
26
------------------
----------------
327 EBITDA
1,175
Loss on asset dispositions and
4 impairments, net
33
(3) Discontinued operations
(17)
Restructuring and other special
(37) credits, net
(37)
Adjustment to costs associated
-- with construction remediation
(4)
------------------
----------------
$291 Adjusted EBITDA
$1,150
==================
================
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Non-GAAP to GAAP Reconciliations -
Same Store Owned Hotel Revenue and Expenses
(In millions)
Three Months Ended
Six Months Ended
June 30,
June 30,
--------------------
-------------------------
% Same-Store Owned
%
2005 2004 Variance Hotels(1)
Worldwide 2005 2004
Variance
----- ----- --------
------- ------- ---------
Revenue
Same-Store Owned
$929 $847 9.7
Hotels
$1,702 $1,576 8.0
Hotels Sold or Closed
in 2005 and 2004 (4
1 10
(90.0) hotels)
6 19 (68.4)
Hotels Without
Comparable Results
8 9
(11.1) (4 hotels)
43 41
4.9
Other ancillary hotel
1 2
(50.0) operations
1 1
--
----- ----- --------
------- ------- ---------
Total Owned, Leased and
Consolidated Joint
$939 $868 8.2
Venture Hotels Revenue $1,752 $1,637
7.0
===== ===== ========
======= ======= =========
Costs and Expenses
Same-Store Owned
$664 $621 (6.9)
Hotels
$1,275 $1,199 (6.3)
Hotels Sold or Closed
in 2005 and 2004 (4
1 8
87.5 hotels)
6 16 62.5
Hotels Without
Comparable Results
8 9
11.1 (4 hotels)
33 30 (10.0)
Other ancillary hotel
2 2
-- operations
2 2
--
----- ----- --------
------- ------- ---------
Total Owned, Leased and
Consolidated Joint
Venture Hotels Costs
$675 $640 (5.5) and
Expenses $1,316
$1,247 (5.5)
===== ===== ========
======= ======= =========
Three Months Ended
Six Months Ended
June 30,
June 30,
--------------------
-------------------------
% Same-Store Owned Hotels
%
2005 2004 Variance
North America 2005
2004 Variance
----- ----- --------
------- ------- ---------
Revenue
Same-Store Owned
$674 $617 9.2
Hotels
$1,237 $1,158 6.8
Hotels Sold or Closed
in 2005 and 2004
-- 4 (100.0)
(3 hotels)
2 10 (80.0)
Hotels Without
Comparable Results
4 5
(20.0) (3 hotels)
33 32
3.1
----- ----- --------
------- ------- ---------
Total Owned, Leased and
Consolidated Joint
$678 $626 8.3
Venture Hotels Revenue $1,272 $1,200
6.0
===== ===== ========
======= ======= =========
Costs and Expenses
Same-Store Owned
$481 $454 (5.9)
Hotels
$923 $881 (4.8)
Hotels Sold or Closed
in 2005 and 2004
-- 4
100.0 (3 hotels)
2 8 75.0
Hotels Without
Comparable Results
6 6
-- (3 hotels)
27 24 (12.5)
----- ----- --------
------- ------- ---------
Total Owned, Leased and
Consolidated Joint
Venture Hotels Costs
$487 $464 (5.0) and
Expenses
$952 $913 (4.3)
===== ===== ========
======= ======= =========
Three Months Ended
Six Months Ended
June 30,
June 30,
--------------------
-------------------------
% Same-Store Owned Hotels
%
2005 2004 Variance
International 2005
2004 Variance
----- ----- --------
------- ------- ---------
Revenue
Same-Store Owned
$255 $230 10.9
Hotels
$465 $418 11.2
Hotels Sold or Closed
in 2005 and 2004
1 6
(83.3) (1 hotel)
4 9 (55.5)
Hotels Without
Comparable Results
4 4
-- (1 hotel)
10 9
11.1
Other ancillary hotel
1 2
(50.0) operations
1 1
--
----- ----- --------
------- ------- ---------
Total Owned, Leased and
Consolidated Joint
$261 $242 7.9
Venture Hotels Revenue $480 $437
9.8
===== ===== ========
======= ======= =========
Costs and Expenses
Same-Store Owned
$183 $167 (9.6)
Hotels
$352 $318 (10.7)
Hotels Sold or Closed
in 2005 and 2004
1 4
75.0 (1 hotel)
4 8 50.0
Hotels Without
Comparable Results
2 3
33.3 (1 hotel)
6 6
--
Other ancillary
2 2
-- hotel operations
2 2
--
----- ----- --------
------- ------- ---------
Total Owned, Leased and
Consolidated Joint
Venture Hotels Costs
$188 $176 (6.8) and
Expenses
$364 $334 (9.0)
===== ===== ========
======= ======= =========
(1) Same-Store Owned Hotel Results exclude 4 hotels sold
or closed in
2005 and 2004 and 4 hotels without
comparable results.
STARWOOD HOTELS & RESORTS
WORLDWIDE, INC.
Hotel Results - Same Store Owned Hotels(1)
For the Three Months Ended
June 30, 2005
UNAUDITED
WORLDWIDE
NORTH AMERICA
--------------------- ---------------------
2005 2004 Var. 2005
2004 Var.
------- ------- ----- ------- ------- -----
134 Hotels
91 Hotels
--------------------- ---------------------
SAME STORE OWNED HOTELS
REVPAR ($)
131.98 117.49 12.3% 130.18 115.54 12.7%
ADR ($)
178.24 165.85 7.5% 171.30 157.15
9.0%
OCCUPANCY
(%) 74.0% 70.8% 3.2
76.0% 73.5% 2.5
58
36
--------------------- ---------------------
SHERATON
REVPAR ($)
107.89 97.21 11.0% 114.84 104.45
9.9%
ADR ($)
150.69 140.23 7.5% 154.33 141.00
9.5%
OCCUPANCY
(%) 71.6% 69.3% 2.3
74.4% 74.1% 0.3
36
22
--------------------- ---------------------
WESTIN
REVPAR ($)
142.51 126.13 13.0% 124.26 108.79 14.2%
ADR ($)
183.73 172.21 6.7% 158.13 146.06
8.3%
OCCUPANCY
(%) 77.6% 73.2% 4.4
78.6% 74.5% 4.1
10
4
--------------------- ---------------------
ST. REGIS/
LUXURY COLLECTION
REVPAR ($)
289.21 258.86 11.7% 266.55 233.32 14.2%
ADR ($)
404.50 390.77 3.5% 356.99 338.31
5.5%
OCCUPANCY
(%) 71.5% 66.2% 5.3
74.7% 69.0% 5.7
12
12
--------------------- ---------------------
W
REVPAR ($)
196.28 167.46 17.2% 196.28 167.46 17.2%
ADR ($)
243.82 218.23 11.7% 243.82 218.23 11.7%
OCCUPANCY
(%) 80.5% 76.7% 3.8
80.5% 76.7% 3.8
18
17
--------------------- ---------------------
OTHER
REVPAR ($)
90.90 80.83 12.5% 89.39 78.74
13.5%
ADR ($)
127.43 118.65 7.4% 125.71 118.30
6.3%
OCCUPANCY
(%) 71.3% 68.1% 3.2
71.1% 66.6% 4.5
(1) Hotel Results exclude 4 hotels sold or closed and
3 hotels without comparable results during 2004 and 2005.
(2) See next page for breakdown by division
INTERNATIONAL(2)
2005 2004 Var.
-------- ------- -----
43 Hotels
SAME STORE OWNED HOTELS
REVPAR ($)
137.30 123.26 11.4%
ADR ($)
200.96 195.77 2.7%
OCCUPANCY
(%)
68.3% 63.0% 5.3
22
SHERATON
REVPAR ($)
92.95 81.69 13.8%
ADR ($)
141.78 138.16 2.6%
OCCUPANCY
(%)
65.6% 59.1% 6.5
14
WESTIN
REVPAR ($)
200.32 180.80 10.8%
ADR ($)
269.39 260.77 3.3%
OCCUPANCY
(%)
74.4% 69.3% 5.1
6
ST. REGIS/LUXURY COLLECTION
REVPAR ($)
327.07 303.43 7.8%
ADR ($)
494.00 493.43 0.1%
OCCUPANCY
(%)
66.2% 61.5% 4.7
W
REVPAR ($)
ADR ($)
OCCUPANCY
(%)
1
OTHER
REVPAR ($)
100.04 93.54 6.9%
ADR ($)
137.63 120.53 14.2%
OCCUPANCY
(%)
72.7% 77.6% (4.9)
(1) Hotel Results exclude 4 hotels sold or closed and
3 hotels without comparable results during 2004 and 2005.
(2) See next page for breakdown by division
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Hotel Results - Same Store Owned Hotels(1)
For the Three Months Ended
June 30, 2005
UNAUDITED
EUROPE
LATIN AMERICA
--------------------- ---------------------
2005 2004 Var. 2005
2004 Var.
------- ------- ----- ------- ------- -----
28 Hotels
11 Hotels
--------------------- ---------------------
SAME STORE OWNED HOTELS
REVPAR ($)
194.63 177.28 9.8% 64.50 53.98
19.5%
ADR ($)
271.09 265.21 2.2% 103.35 99.83
3.5%
OCCUPANCY
(%) 71.8% 66.8%
5.0 62.4% 54.1% 8.3
11
8
--------------------- ---------------------
SHERATON
REVPAR ($)
126.69 114.10 11.0% 55.17 46.05 19.8%
ADR ($)
172.74 171.23 0.9% 96.10 92.52
3.9%
OCCUPANCY
(%) 73.3% 66.6%
6.7 57.4% 49.8% 7.6
11
3
--------------------- ---------------------
WESTIN
REVPAR ($)
238.48 217.37 9.7% 99.95 84.13
18.8%
ADR ($)
332.76 315.41 5.5% 122.73 119.44 2.8%
OCCUPANCY
(%) 71.7% 68.9%
2.8 81.4% 70.4% 11.0
6
ST. REGIS/
LUXURY COLLECTION
REVPAR ($)
327.07 303.43 7.8%
ADR ($)
494.00 493.43 0.1%
OCCUPANCY
(%) 66.2% 61.5%
4.7
OTHER
REVPAR ($)
ADR ($)
OCCUPANCY
(%)
(1) Hotel Results exclude 4 hotels sold or closed and
3 hotels without
comparable results during 2004 and
2005.
ASIA PACIFIC
2005 2004 Var.
------- ------- -----
4 Hotels
SAME STORE OWNED HOTELS
REVPAR ($)
110.82 99.01 11.9%
ADR ($)
156.94 138.70 13.2%
OCCUPANCY
(%)
70.6% 71.4% (0.8)
3
SHERATON
REVPAR ($)
117.43 102.36 14.7%
ADR ($)
169.35 151.49 11.8%
OCCUPANCY
(%)
69.3% 67.6% 1.7
WESTIN
REVPAR ($)
ADR ($)
OCCUPANCY
(%)
ST. REGIS/LUXURY COLLECTION
REVPAR ($)
ADR ($)
OCCUPANCY
(%)
1
OTHER
REVPAR ($)
100.04 93.54 6.9%
ADR ($)
137.63 120.53 14.2%
OCCUPANCY
(%)
72.7% 77.6% (4.9)
(1) Hotel Results exclude 4 hotels sold or closed and
3 hotels without
comparable results during 2004 and
2005.
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Hotel Results - Same Store Owned Hotels(1)
For the Three Months Ended
June 30, 2005
UNAUDITED ($ thousands except variances)
WORLDWIDE(2)
NORTH AMERICA(2)
------------------------ ------------------------
2005 2004 Var.
2005 2004 Var.
-------- -------- ------ -------- -------- ------
134 Hotels
91 Hotels
------------------------ ------------------------
SAME STORE
OWNED HOTELS
Total REVENUE 928,951
847,188 9.7% 674,173 616,627
9.3%
Total EXPENSE 664,554
621,516 (6.9%) 481,103 454,387 (5.9%)
58
36
------------------------ ------------------------
SHERATON
REVENUE
364,631 338,739 7.6% 253,467 240,513
5.4%
EXPENSE
264,395 246,701 (7.2%) 180,127 174,040 (3.5%)
36
22
------------------------ ------------------------
WESTIN
REVENUE
295,263 265,614 11.2% 194,662 173,829
12.0%
EXPENSE
204,833 191,443 (7.0%) 135,618 126,413 (7.3%)
10
4
------------------------ ------------------------
ST. REGIS/
LUXURY COLLECTION
REVENUE
104,638 98,186 6.6% 69,675
65,080 7.1%
EXPENSE
73,729 70,360 (4.8%) 51,384 48,160
(6.7%)
12
12
------------------------ ------------------------
W(2)
REVENUE
107,838 93,742 15.0% 107,838 93,742
15.0%
EXPENSE
77,411 71,460 (8.3%) 77,411 71,460
(8.3%)
18
17
------------------------ ------------------------
OTHER
REVENUE
56,581 50,907 11.1% 48,531 43,463
11.7%
EXPENSE
44,186 41,552 (6.3%) 36,563 34,314
(6.6%)
(1) Hotel Results exclude 4 hotels sold or closed and
3 hotels without comparable results during 2004 and 2005.
(2) Includes lease expense of $4,288 in 2005 and 2004
related to the lease of the W Times Square in New York
(3) See next page for breakdown by division
INTERNATIONAL(3)
2005 2004 Var.
-------- -------- -------
43 Hotels
SAME STORE OWNED HOTELS
Total REVENUE
254,778 230,561 10.5%
Total EXPENSE
183,451 167,129 (9.8%)
22
SHERATON
REVENUE
111,164 98,226 13.2%
EXPENSE
84,268 72,661 (16.0%)
14
WESTIN
REVENUE
100,601 91,785 9.6%
EXPENSE
69,215 65,030 (6.4%)
6
ST. REGIS/LUXURY COLLECTION
REVENUE
34,963 33,106 5.6%
EXPENSE
22,345 22,200 (0.7%)
W(2)
REVENUE
EXPENSE
1
OTHER
REVENUE
8,050 7,444 8.1%
EXPENSE
7,623 7,238 (5.3%)
(1) Hotel Results exclude 4 hotels sold or closed and
3 hotels without comparable results during 2004 and 2005.
(2) Includes lease expense of $4,288 in 2005 and 2004
related to the lease of the W Times Square in New York
(3) See next page for breakdown by division
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Hotel Results - Same Store Owned Hotels(1)
For the Three Months Ended
June 30, 2005
UNAUDITED ($ thousands except variances)
EUROPE
LATIN AMERICA
------------------------- -----------------------
2005 2004 Var.
2005 2004 Var.
-------- -------- ------- ------- ------- -------
28 Hotels
11 Hotels
------------------------- -----------------------
SAME STORE OWNED
HOTELS
Total REVENUE 179,686
167,292 7.4% 47,137 38,194
23.4%
Total EXPENSE 130,019
121,812 (6.7%) 31,823 25,653 (24.1%)
11
8
------------------------- -----------------------
SHERATON
REVENUE
61,074 55,581 9.9% 30,185 25,014
20.7%
EXPENSE
48,790 43,529 (12.1%) 21,492 16,706 (28.6%)
11
3
------------------------- -----------------------
WESTIN
REVENUE
83,649 78,605 6.4% 16,952 13,180
28.6%
EXPENSE
58,884 56,083 (5.0%) 10,331 8,947
(15.5%)
6
ST. REGIS/
LUXURY COLLECTION
REVENUE
34,963 33,106 5.6%
EXPENSE
22,345 22,200 (0.7%)
OTHER
REVENUE
EXPENSE
(1) Hotel Results exclude 4 hotels sold or closed and
3 hotels without
comparable results during 2004 and
2005.
ASIA PACIFIC
2005 2004 Var.
-------- ------- -------
4 Hotels
SAME STORE OWNED HOTELS
Total REVENUE
27,955 25,075 11.5%
Total EXPENSE
21,609 19,664 (9.9%)
3
SHERATON
REVENUE
19,905 17,631 12.9%
EXPENSE
13,986 12,426 (12.6%)
WESTIN
REVENUE
EXPENSE
ST. REGIS/LUXURY COLLECTION
REVENUE
EXPENSE
1
OTHER
REVENUE
8,050 7,444 8.1%
EXPENSE
7,623 7,238 (5.3%)
(1) Hotel Results exclude 4 hotels sold or closed and
3 hotels without
comparable results during 2004 and
2005.
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Hotel Results - Same Store Owned Hotels(1)
For the Six Months Ended
June 30, 2005
UNAUDITED
WORLDWIDE NORTH
AMERICA
--------------------- ---------------------
2005 2004 Var. 2005
2004 Var.
------- ------- ----- ------- ------- -----
133 Hotels
90 Hotels
--------------------- ---------------------
SAME STORE OWNED HOTELS
REVPAR ($)
122.20 109.90 11.2% 120.46 108.85 10.7%
ADR ($)
173.87 162.36 7.1% 168.65 155.81 8.2%
OCCUPANCY
(%) 70.3% 67.7%
2.6 71.4% 69.9% 1.5
57
35
--------------------- ---------------------
SHERATON
REVPAR ($)
99.46 90.88 9.4% 103.09 95.46
8.0%
ADR ($)
146.12 137.06 6.6% 148.89 136.98 8.7%
OCCUPANCY
(%) 68.1% 66.3%
1.8 69.2% 69.7% (0.5)
36
22
--------------------- ---------------------
WESTIN
REVPAR ($)
135.00 120.42 12.1% 120.79 108.82 11.0%
ADR ($)
180.70 168.58 7.2% 158.78 147.78 7.4%
OCCUPANCY
(%) 74.7% 71.4%
3.3 76.1% 73.6% 2.5
10
4
--------------------- ---------------------
ST. REGIS/
LUXURY COLLECTION
REVPAR ($)
266.71 238.78 11.7% 271.92 238.17 14.2%
ADR ($)
396.77 384.29 3.2% 368.61 351.05 5.0%
OCCUPANCY
(%) 67.2% 62.1%
5.1 73.8% 67.8% 6.0
12
12
--------------------- ---------------------
W
REVPAR ($)
176.30 152.22 15.8% 176.30 152.22 15.8%
ADR ($)
233.63 212.32 10.0% 233.63 212.32 10.0%
OCCUPANCY
(%) 75.5% 71.7%
3.8 75.5% 71.7% 3.8
18
17
--------------------- ---------------------
OTHER
REVPAR ($)
80.48 72.28 11.3% 75.69 67.71
11.8%
ADR ($)
124.15 115.97 7.1% 121.12 114.72 5.6%
OCCUPANCY
(%) 64.8% 62.3%
2.5 62.5% 59.0% 3.5
(1) Hotel Results exclude 4 hotels sold or closed and
4 hotels without comparable results during 2004 and 2005.
(2) See next page for breakdown by division
INTERNATIONAL(2)
2005 2004 Var.
------- ------- ------
43 Hotels
SAME STORE OWNED HOTELS
REVPAR ($)
127.35 112.99 12.7%
ADR ($)
190.37 184.47 3.2%
OCCUPANCY
(%)
66.9% 61.3% 5.6
22
SHERATON
REVPAR ($)
91.76 81.14 13.1%
ADR ($)
139.93 137.27 1.9%
OCCUPANCY
(%)
65.6% 59.1% 6.5
14
WESTIN
REVPAR ($)
181.35 157.87 14.9%
ADR ($)
258.09 245.44 5.2%
OCCUPANCY
(%)
70.3% 64.3% 6.0
6
ST. REGIS/LUXURY COLLECTION
REVPAR ($)
258.00 239.85 7.6%
ADR ($)
458.46 459.71 (0.3%)
OCCUPANCY
(%)
56.3% 52.2% 4.1
W
REVPAR ($)
ADR ($)
OCCUPANCY
(%)
1
OTHER
REVPAR ($)
109.54 100.04 9.5%
ADR ($)
138.68 121.41 14.2%
OCCUPANCY
(%)
79.0% 82.4% (3.4)
(1) Hotel Results exclude 4 hotels sold or closed and
4 hotels without comparable results during 2004 and 2005.
(2) See next page for breakdown by division
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Hotel Results - Same Store Owned Hotels(1)
For the Six Months Ended
June 30, 2005
UNAUDITED
EUROPE
LATIN AMERICA
---------------------- ---------------------
2005 2004 Var. 2005
2004 Var.
------- ------- ------ ------- ------- -----
28 Hotels
11 Hotels
---------------------- ---------------------
SAME STORE OWNED HOTELS
REVPAR ($)
168.66 151.89 11.0% 73.27 61.77
18.6%
ADR ($)
257.53 249.67 3.1% 110.95 108.05
2.7%
OCCUPANCY
(%) 65.5% 60.8%
4.7 66.0% 57.2% 8.8
11
8
---------------------- ---------------------
SHERATON
REVPAR ($)
118.43 106.79 10.9% 59.33 51.41
15.4%
ADR ($)
172.90 169.63 1.9% 96.81 96.81
0.0%
OCCUPANCY
(%) 68.5% 63.0%
5.5 61.3% 53.1% 8.2
11
3
---------------------- ---------------------
WESTIN
REVPAR ($)
203.19 180.03 12.9% 126.21 101.12 24.8%
ADR ($)
313.65 294.73 6.4% 150.07 139.27
7.8%
OCCUPANCY
(%) 64.8% 61.1%
3.7 84.1% 72.6% 11.5
6
ST. REGIS/
LUXURY COLLECTION
REVPAR ($)
258.00 239.85 7.6%
ADR ($)
458.46 459.71 (0.3%)
OCCUPANCY
(%) 56.3% 52.2%
4.1
OTHER
REVPAR ($)
ADR ($)
OCCUPANCY
(%)
(1) Hotel Results exclude 4 hotels sold or closed and
4 hotels without
comparable results during 2004 and
2005.
ASIA PACIFIC
2005 2004 Var.
------- ------- ------
4 Hotels
SAME STORE OWNED HOTELS
REVPAR ($)
117.42 103.29 13.7%
ADR ($)
158.10 140.72 12.4%
OCCUPANCY
(%)
74.3% 73.4% 0.9
3
SHERATON
REVPAR ($)
122.25 105.28 16.1%
ADR ($)
171.26 155.10 10.4%
OCCUPANCY
(%)
71.4% 67.9% 3.5
WESTIN
REVPAR ($)
ADR ($)
OCCUPANCY
(%)
ST. REGIS/LUXURY COLLECTION
REVPAR ($)
ADR ($)
OCCUPANCY
(%)
1
OTHER
REVPAR ($)
109.54 100.04 9.5%
ADR ($)
138.68 121.41 14.2%
OCCUPANCY
(%)
79.0% 82.4% (3.4%)
(1) Hotel Results exclude 4 hotels sold or closed and
4 hotels without
comparable results during 2004 and
2005.
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Hotel Results - Same Store Owned Hotels(1)
For the Six Months Ended
June 30, 2005
UNAUDITED ($ thousands except variances)
WORLDWIDE(2)
2005 2004
Var.
---------- ---------- ------
133 Hotels
SAME STORE OWNED HOTELS
Total REVENUE
1,701,818 1,576,067 8.0%
Total EXPENSE
1,275,245 1,198,852 (6.4%)
57
SHERATON
REVENUE
652,363 618,591 5.5%
EXPENSE
495,858 466,814 (6.2%)
36
WESTIN
REVENUE
556,474 504,853 10.2%
EXPENSE
399,888 372,779 (7.3%)
10
ST. REGIS/LUXURY COLLECTION
REVENUE
197,672 186,114 6.2%
EXPENSE
145,311 139,403 (4.2%)
12
W(2)
REVENUE
195,229 173,762 12.4%
EXPENSE
149,132 139,616 (6.8%)
18
OTHER
REVENUE
100,080 92,747 7.9%
EXPENSE
85,056 80,240 (6.0%)
(1) Hotel Results exclude 4 hotels sold or closed and
4 hotels without comparable results during 2004 and 2005.
(2) Includes lease expense of $8,575 in 2005 and 2004
related to the lease of the W Times Square in New York
(3) See next page for breakdown by division
NORTH AMERICA(2)
INTERNATIONAL(3)
---------------------------- -------------------------
2005 2004
Var. 2005 2004
Var.
---------- ---------- ------ -------- -------- -------
90 Hotels
43 Hotels
---------------------------- -------------------------
SAME STORE
OWNED HOTELS
Total REVENUE 1,237,337 1,158,188
6.8% 464,481 417,879 11.2%
Total EXPENSE 923,059
880,686 (4.8%) 352,185 318,165 (10.7%)
35
22
---------------------------- -------------------------
SHERATON
REVENUE
440,847 429,756 2.6% 211,516
188,835 12.0%
EXPENSE
334,919 325,952 (2.8%) 160,939 140,862
(14.3%)
22
14
---------------------------- -------------------------
WESTIN
REVENUE
378,599 346,139 9.4% 177,875
158,714 12.1%
EXPENSE
267,879 251,935 (6.3%) 132,009 120,844
(9.2%)
4
6
---------------------------- -------------------------
ST. REGIS/LUXURY
COLLECTION
REVENUE
139,799 131,726 6.1% 57,873
54,388 6.4%
EXPENSE
101,963 97,704 (4.4%) 43,348
41,699 (4.0%)
12
0
W(2)
REVENUE
195,229 173,762 12.4%
0 0 0.0%
EXPENSE
149,132 139,616 (6.8%)
0 0 0.0%
17
1
---------------------------- -------------------------
OTHER
REVENUE
82,863 76,805 7.9% 17,217
15,942 8.0%
EXPENSE
69,167 65,480 (5.6%) 15,889
14,760 (7.6%)
(1) Hotel Results exclude 4 hotels sold or closed and
4 hotels without comparable results during 2004 and 2005.
(2) Includes lease expense of $8,575 in 2005 and 2004
related to the lease of the W Times Square in New York
(3) See next page for breakdown by division
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Hotel Results - Same Store Owned Hotels(1)
For the Six Months Ended
June 30, 2005
UNAUDITED ($ thousands except variances)
EUROPE
LATIN AMERICA
------------------------- -----------------------
2005 2004 Var.
2005 2004 Var.
-------- -------- ------- ------- ------- -------
28 Hotels
11 Hotels
------------------------- -----------------------
SAME STORE
OWNED HOTELS
Total REVENUE 308,138
283,123 8.8% 99,285 83,653
18.7%
Total EXPENSE 245,985
225,192 (9.2%) 62,844 53,627 (17.2%)
11
8
------------------------- -----------------------
SHERATON
REVENUE
110,292 100,191 10.1% 61,383 53,483
14.8%
EXPENSE
91,851 81,323 (12.9%) 41,621 34,953 (19.1%)
11
3
------------------------- -----------------------
WESTIN
REVENUE
139,973 128,544 8.9% 37,902 30,170
25.6%
EXPENSE
110,786 102,170 (8.4%) 21,223 18,674 (13.6%)
6
ST. REGIS/LUXURY
COLLECTION
REVENUE
57,873 54,388 6.4%
EXPENSE
43,348 41,699 (4.0%)
OTHER
REVENUE
EXPENSE
(1) Hotel Results exclude 4 hotels sold or closed and
4 hotels without
comparable results during 2004 and
2005.
ASIA PACIFIC
2005 2004 Var.
------- ------- -------
4 Hotels
SAME STORE OWNED HOTELS
Total REVENUE
57,058 51,103 11.7%
Total EXPENSE
43,356 39,346 (10.2%)
3
SHERATON
REVENUE
39,841 35,161 13.3%
EXPENSE
27,467 24,586 (11.7%)
WESTIN
REVENUE
EXPENSE
ST. REGIS/LUXURY COLLECTION
REVENUE
EXPENSE
1
OTHER
REVENUE
17,217 15,942 8.0%
EXPENSE
15,889 14,760 (7.6%)
(1) Hotel Results exclude 4 hotels sold or closed and
4 hotels without
comparable results during 2004 and
2005.
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Debt Portfolio Summary
As of June 30, 2005
UNAUDITED
Avg
Interest Balance % of
Interest Maturity
Debt
Terms (in millions) Portfolio Rate
(in years)
--------------- -------- ------------- ---------- --------
-----------
Floating Rate
Debt:
Senior credit
facility
Revolving
credit
facility Various
+ 125
$14 0%
3.81% 1.3
Term loan LIBOR
+ 125
500 12%
4.59% 1.1
------------- ---------- -------- -----------
514 12%
4.57% 1.2
Mortgages
and other Various
186 4%
5.38% 2.2
Interest rate
swaps
LIBOR
+ 423
300 7%
7.75%
------------- ---------- --------
Total Floating
1,000 23%
5.67% 1.4
Fixed Rate Debt:
Sheraton
Holding public
debt (1)
1,052 24%
6.00% 7.5
Senior notes (2)
1,510 35%
6.70% 4.4
Convertible debt
360 8%
3.50% 0.9
Mortgages
and other
737 17%
7.25% 5.8
Interest rate
swaps
(300) (7%) 7.88%
------------- ---------- --------
Total Fixed
3,359 77%
6.13% 5.2
------------- ---------- --------
Total Debt
$4,359 100%
6.03% 4.6
============= ========== ========
(1) Balance consists of outstanding public debt of $1.047
billion and a $5 million fair value adjustment related to the unamortized
gain on fixed to floating interest rate swaps terminated in September 2002
and March 2004.
(2) Balance consists of outstanding public debt of $1.496
billion and a $26 million fair value adjustment related to the unamortized
gain on fixed to floating interest rate swaps terminated in September 2002
and March 2004 and a ($12) million fair value adjustment related to current
fixed to floating interest rate swaps.
Maturities
less than 1 year $634
1-3 years 1,631
3-5 years 485
greater than 5 years 1,609
$4,359
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Hotels without Comparable
Results & Other Selected Items
As of June 30, 2005
UNAUDITED ($ millions)
Properties without comparable results in 2005:
Property
Location
--------
--------
Sheraton Kauai
Koloa, HI
St. Regis Aspen
Aspen, CO
Paradise Streams Caesars
Mt. Pocono, PA
Sheraton Cancun
Cancun, Mexico
Properties sold or closed in 2005 and 2004:
Property
Location
--------
--------
Englewood - Sheraton Denver Tech Center
Englewood, CO
Deerfield - Hilton
Ft. Lauderdale, FL
Rancho Bernardo - Four Points
Rancho Bernardo, CA
Lisbon - Sheraton Lisboa Htl & Twrs
Lisbon, Portugal
Selected Balance Sheet Items:
Cash and cash equivalents
(including restricted cash of $518 million)
$899
Debt level
$4,359
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Capital Expenditures
For the Three and Six Months Ended June 30, 2005
UNAUDITED ($ millions)
Q2 YTD
------ -------
Capital Expenditures:
Owned, Leased and Consolidated Joint Venture Hotels
68 126
Corporate/IT
12 16
------ -------
Subtotal
80 142
Vacation Ownership Capital Expenditures:
Capital expenditures (includes land acquisitions)
6 8
Net capital expenditures for inventory (1)
(6) (20)
------ -------
Subtotal
- (12)
Development Capital
27 98
------ -------
Total Capital Expenditures
107 228
====== =======
(1) Represents gross inventory capital expenditures of
$40 and $73 in the three and six months ended June 30, 2005, respectively,
less cost of sales of $46 and $93 in the three and six months ended June
30, 2005, respectively.
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Summary of Portfolio by Properties & Rooms
As of June 30, 2005
UNAUDITED
NAD
EAME
LAD
---------------- --------------- ---------------
Owned
Hotels Rooms Hotels Rooms Hotels
Rooms
------- -------- ------- ------- ------- -------
Sheraton
36 16,218 11 3,077
7 3,549
Westin
22 10,359 11 2,374
3 901
Four Points
6 1,153 -
- -
-
W
12 4,294 -
- -
-
Luxury Collection
1 654
5 638 2
320
St. Regis
4 840
1 161 -
-
Other
12 2,806 -
- -
-
------- -------- ------- ------- ------- -------
Total Owned
93 36,324 28 6,250
12 4,770
Managed & UJV
Sheraton
42 20,828 72 21,170
10 1,995
Westin
37 20,888 7
1,869 -
-
Four Points
1 475
7 1,035 2
263
W
5 902
- -
1 237
Luxury Collection
6 1,401 6
942 7 158
St. Regis
2 403
1 95
- -
Other
1 2,567 -
- -
-
------- -------- ------- ------- ------- -------
Total Managed & UJV
94 47,464 93 25,111
20 2,653
Franchised
Sheraton
114 35,953 29 7,043
3 1,074
Westin
18 7,288 3
1,141 3 598
Four Points
92 16,363 10 1,376
9 1,350
Luxury Collection
3 600 12
1,354 -
-
------- -------- ------- ------- ------- -------
Total Franchised
227 60,204 54 10,914
15 3,022
----------------------------------------------------------------------
Systemwide
Sheraton
192 72,999 112 31,290
20 6,618
Westin
77 38,535 21 5,384
6 1,499
Four Points
99 17,991 17 2,411
11 1,613
W
17 5,196 -
- 1 237
Luxury Collection
10 2,655 23
2,934 9 478
St. Regis
6 1,243 2
256 -
-
Other
13 5,373 -
- -
-
------- -------- ------- ------- ------- -------
Total Systemwide
414 143,992 175 42,275
47 10,445
======= ======== ======= ======= ======= =======
ASIA
Total
--------------- ----------------
Owned
Hotels Rooms Hotels Rooms
------- ------- ------- --------
Sheraton
3 1,028 57 23,872
Westin
- - 36
13,634
Four Points
1 630 7
1,783
W
- - 12
4,294
Luxury Collection
- -
8 1,612
St. Regis
- -
5 1,001
Other
- - 12
2,806
------- ------- ------- --------
Total Owned
4 1,658 137 49,002
Managed & UJV
Sheraton
45 16,267 169 60,260
Westin
12 4,935 56 27,692
Four Points
2 387 12
2,160
W
2 353 8
1,492
Luxury Collection
- - 19
2,501
St. Regis
2 591 5
1,089
Other
2 296 3
2,863
------- ------- ------- --------
Total Managed & UJV
65 22,829 272 98,057
Franchised
Sheraton
17 5,682 163 49,752
Westin
5 1,226 29 10,253
Four Points
1 126 112 19,215
Luxury Collection
- - 15
1,954
------- ------- ------- --------
Total Franchised
23 7,034 319 81,174
----------------------------------------------------------------------
Systemwide
Sheraton
65 22,977 389 133,884
Westin
17 6,161 121 51,579
Four Points
4 1,143 131 23,158
W
2 353 20
5,786
Luxury Collection
- - 42
6,067
St. Regis
2 591 10
2,090
Other
2 296 15
5,669
------- ------- ------- --------
Total Systemwide
92 31,521 728 228,233
======= ======= ======= ======== |