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Starwood Reports Net Income 1st Qtr 2012 of $128 million Compared to
$28 million
Same Period 2011; Worldwide System-wide RevPAR Up 6.4%

Systemwide Hotel Statistics

STAMFORD, Conn.--April 26, 2012-Starwood Hotels & Resorts Worldwide, Inc. (NYSE: HOT) today reported first quarter 2012 financial results.

First Quarter 2012 Highlights

  • Excluding special items, EPS from continuing operations was $0.63, including income from the St. Regis Bal Harbour residential project. Including special items, EPS from continuing operations was $0.65.
  • Adjusted EBITDA was $297 million, which included $78 million of EBITDA from the St. Regis Bal Harbour residential project, up 42.8% compared to 2011.
  • Excluding special items, income from continuing operations was $124 million, including income from the St. Regis Bal Harbour residential project. Including special items, income from continuing operations was $129 million.
  • Worldwide System-wide REVPAR for Same-Store Hotels increased 5.8% (6.4% in constant dollars) compared to 2011. System-wide REVPAR for Same-Store Hotels in North America increased 7.1% (7.2% in constant dollars).
  • Management fees, franchise fees and other income increased 13.6% compared to 2011.
  • Worldwide Same-Store Company-Operated gross operating profit margins increased approximately 160 basis points compared to 2011.
  • Worldwide REVPAR for Starwood branded Same-Store Owned Hotels increased 4.5% (4.9% in constant dollars) compared to 2011.
  • Margins at Starwood branded Same-Store Owned Hotels Worldwide increased approximately 160 basis points compared to 2011.
  • Earnings from our vacation ownership and residential business increased approximately $79 million compared to 2011, including $78 million of earnings from the St. Regis Bal Harbour residential project.
  • During the quarter, the Company signed 32 hotel management and franchise contracts, representing approximately 9,000 rooms, and opened 18 hotels and resorts with approximately 4,500 rooms.

First Quarter 2012 Earnings Summary

Starwood Hotels & Resorts Worldwide, Inc. (“Starwood” or the “Company”) today reported EPS from continuing operations for the first quarter of 2012 of $0.65 compared to $0.15 in the first quarter of 2011. Excluding special items, EPS from continuing operations was $0.63 for the first quarter of 2012, including income from The St. Regis Bal Harbour Resort residential project (“Bal Harbour”), compared to $0.30 in the first quarter of 2011. Special items in the first quarter of 2012 included an $11 million (pre-tax) reduction of a legal reserve, partially offset by a $7 million (pre-tax) loss on the sale of one wholly-owned hotel. Special items in the first quarter of 2011 included a pre-tax charge of $33 million, primarily related to the Company’s minority investment in a hotel in Tokyo, Japan following the earthquake in March 2011. Excluding special items, the effective income tax rate in the first quarter of 2012 was 29.8%, including income from Bal Harbour, compared to 21.0% in the first quarter of 2011.

Income from continuing operations was $129 million in the first quarter of 2012, compared to $29 million in the first quarter of 2011. Excluding special items, income from continuing operations was $124 million in the first quarter of 2012, including income from Bal Harbour, compared to $58 million in the first quarter of 2011.

Net income was $128 million and $0.65 per share in the first quarter of 2012, compared to $28 million and $0.14 per share in the first quarter of 2011.

Frits van Paasschen, CEO, said, “Our momentum picked up in the first quarter. Worldwide REVPAR grew 6.4%, adjusting for exchange rates, and fees were up a healthy 13.6%. We are proud to report that our brand portfolio again outperformed the market, posting our 11th straight quarterly gain in REVPAR index.”

“Going into the year, we said that 2012 was more likely to surprise on the upside. So far, that is playing out. More importantly, we remain very bullish on the long-term. Seemingly unstoppable demographic and economic trends are fueling global growth in demand for high end travel. Rising wealth around the world and globally interconnected businesses will lead to ever more travel.”

First Quarter 2012 Operating Results

Management and Franchise Revenues

Worldwide System-wide REVPAR for Same-Store Hotels increased 5.8% (6.4% in constant dollars) compared to the first quarter of 2011. International System-wide REVPAR for Same-Store Hotels increased 4.1% (5.2% in constant dollars).

Changes in REVPAR for Worldwide System-wide Same-Store Hotels by region:







REVPAR
Region




Reported




Constant dollars
North America




7.1 %




7.2 %
Europe




(1.9 )%




1.8 %
Asia Pacific




6.7 %




6.2 %
Africa and the Middle East




2.3 %




3.8 %
Latin America




14.4 %




14.4 %

Increases in REVPAR for Worldwide System-wide Same-Store Hotels by brand:







REVPAR
Brand




Reported




Constant dollars
St. Regis/Luxury Collection




2.7 %




4.4 %
W Hotels




8.5 %




8.8 %
Westin




7.2 %




7.6 %
Sheraton




5.2 %




5.5 %
Le Méridien




3.0 %




4.8 %
Four Points by Sheraton




6.4 %




6.3 %
Aloft




9.4 %




9.9 %

Worldwide Same-Store Company-Operated gross operating profit margins increased approximately 160 basis points compared to 2011. International gross operating profit margins for Same-Store Company-Operated properties increased 160 basis points. North American Same-Store Company-Operated gross operating profit margins increased approximately 170 basis points, driven by REVPAR increases and cost controls.

Management fees, franchise fees and other income were $201 million, up $24 million, or 13.6% from the first quarter of 2011. Management fees increased 18.6% to $115 million and franchise fees increased 4.7% to $45 million. Year-over-year comparisons were impacted by the conversion of some franchise agreements to management contracts in Germany.

Development

During the first quarter of 2012, the Company signed 32 hotel management and franchise contracts, representing approximately 9,000 rooms, of which 22 are new builds and 10 are conversions from other brands. At March 31, 2012, the Company had approximately 365 hotels in the active pipeline representing approximately 95,000 rooms.

During the first quarter of 2012, 18 new hotels and resorts (representing approximately 4,500 rooms) entered the system, including The St. Regis Bal Harbour Resort (Florida, 213 rooms), The Westin Lake Las Vegas Resort & Spa (Nevada, 493 rooms), Sheraton Xian North City (China, 491 rooms), Le Méridien Istanbul Etiler (Turkey, 259 rooms) and W Paris Opera (France, 91 rooms). Five properties (representing approximately 1,000 rooms) were removed from the system during the quarter.

Owned, Leased and Consolidated Joint Venture Hotels

Worldwide REVPAR at Starwood branded Same-Store Owned Hotels increased 4.5% (4.9% in constant dollars) when compared to 2011. REVPAR at Starwood branded Same-Store Owned Hotels in North America increased 3.6% (3.9% in constant dollars). Internationally, Starwood branded Same-Store Owned Hotel REVPAR increased 5.8% (6.2% in constant dollars).

Revenues at Starwood branded Same-Store Owned Hotels in North America increased 3.5% while costs and expenses increased 2.4% when compared to 2011. Margins at these hotels increased approximately 90 basis points.

Revenues at Starwood branded Same-Store Owned Hotels Worldwide increased 4.1% (4.5% in constant dollars) while costs and expenses increased 2.1% (2.6% in constant dollars) when compared to 2011. Margins at these hotels increased approximately 160 basis points.

Revenues at owned, leased and consolidated joint venture hotels were $402 million, compared to $410 million in 2011. Expenses at owned, leased and consolidated joint venture hotels were $349 million compared to $361 million in 2011. First quarter results were negatively impacted by five asset sales as well as preopening costs associated with the opening of The St. Regis Bal Harbour Resort.

Vacation Ownership

Total vacation ownership revenues increased 3.4% to $152 million in the first quarter of 2012 when compared to 2011. Originated contract sales of vacation ownership intervals increased 1.2%, primarily due to increased tour flow from new buyers and improved sales and marketing performance. The number of contracts signed increased 3.6%, when compared to 2011, and the average price per vacation ownership unit sold decreased 2.4% to approximately $16,000, driven by inventory mix.

Residential

The Company’s residential revenues were $362 million compared to $6 million in 2011. The Company realized residential revenues for Bal Harbour during the first quarter of 2012 of $356 million and generated EBITDA of $78 million. During the first quarter of 2012, the Company closed sales of 102 units and realized cash proceeds of $263 million associated with these units. From project inception through March 31, 2012, the Company has closed contracts on approximately 45% of the total residential units.

Selling, General, Administrative and Other

Selling, general, administrative and other expenses increased to $96 million compared to $80 million in 2011. The increase was primarily due to non-recurring professional expenses and favorable reserve adjustments recorded in the prior year. We continue to target a 4% to 5% increase for the full year.

Asset Sales

During the quarter, the Company completed the sale of one wholly-owned hotel. This hotel was sold subject to a long-term franchise contract.

Capital

Gross capital spending during the quarter included approximately $29 million of maintenance capital and $50 million of development capital.

Balance Sheet

At March 31, 2012, the Company had gross debt of $2.200 billion, excluding $489 million of debt associated with securitized vacation ownership notes receivable. Additionally, the Company had cash and cash equivalents of $817 million (including $160 million of restricted cash), and net debt of $1.383 billion, compared to net debt of $1.531 billion as of December 31, 2011. Net debt at March 31, 2012, including debt and restricted cash ($21 million) associated with securitized vacation ownership notes receivables, was $1.851 billion.

At March 31, 2012, debt was approximately 80% fixed rate and 20% floating rate and its weighted average maturity was 3.9 years with a weighted average interest rate of 6.65%, excluding the securitized debt. The Company had cash (including current restricted cash) and availability under the domestic and international revolving credit facility of approximately $2.324 billion.

Outlook

For the Full Year 2012:

  • Excluding Bal Harbour, adjusted EBITDA is expected to be approximately $1.070 billion to $1.100 billion, assuming:
    • REVPAR increases at Same-Store Company-Operated Hotels Worldwide of 6% to 8% in constant dollars (approximately 200 basis points lower in dollars at current exchange rates).
    • REVPAR increases at branded Same-Store Owned Hotels Worldwide of 4% to 6% in constant dollars (approximately 200 basis points lower in dollars at current exchange rates).
    • Margins at branded Same-Store Owned Hotels Worldwide increase 100 to 150 basis points.
    • Management fees, franchise fees and other income increase approximately 9% to 11%.
    • Earnings from our vacation ownership and residential business of approximately $150 million to $155 million.
    • Selling, general and administrative expenses increase 4% to 5%.
  • Including Bal Harbour, which is expected to contribute at least $100 million of EBITDA, adjusted EBITDA is expected to be approximately $1.170 billion to $1.200 billion.
  • Depreciation and amortization is expected to be approximately $295 million.
  • Interest expense is expected to be approximately $210 million.
  • Including Bal Harbour, full year effective tax rate is expected to be approximately 30%, and cash taxes are expected to be approximately $100 million.
  • Including Bal Harbour, EPS before special items is expected to be approximately $2.35 to $2.46.
  • Full year capital expenditures (excluding vacation ownership and residential inventory) is expected to be approximately $200 million for maintenance, renovation and technology. In addition, in-flight investment projects and prior commitments for joint ventures and other investments are expected to total approximately $375 million.
  • Vacation ownership (excluding Bal Harbour) is expected to generate approximately $125 million in positive cash flow. Bal Harbour is expected to generate at least $300 million in net cash flow.

For the three months ended June 30, 2012:

  • Excluding Bal Harbour, adjusted EBITDA is expected to be approximately $275 million to $285 million, assuming:
    • REVPAR increases at Same-Store Company-Operated Hotels Worldwide of 6% to 8% in constant dollars (approximately 200 basis points lower in dollars at current exchange rates).
    • REVPAR increases at branded Same-Store Company Owned Hotels Worldwide of 4% to 6% in constant dollars (approximately 250 basis points lower in dollars at current exchange rates).
    • Management fees, franchise fees and other income increase approximately 9% to 11%.
    • Earnings from our vacation ownership and residential business are flat to up $5 million year over year.
  • Including Bal Harbour, which is expected to contribute at least $15 million of EBITDA, adjusted EBITDA is expected to be approximately $290 million to $300 million.
  • Depreciation and amortization is expected to be approximately $72 million.
  • Interest expense is expected to be approximately $53 million.
  • Including Bal Harbour, income from continuing operations is expected to be approximately $115 million to $122 million, reflecting an effective tax rate of approximately 30%.
  • Including Bal Harbour, EPS is expected to be approximately $0.58 to $0.62.

Special Items

The Company’s special items netted to a benefit of $4 million ($5 million after-tax) in the first quarter of 2012 compared to a charge of $33 million ($29 million after-tax) in the same period of 2011.

The following represents a reconciliation of income from continuing operations before special items to income from continuing operations including special items (in millions, except per share data):








Three Months Ended

March 31,





2012


2011










Income from continuing operations before special items
$ 124

$ 58


EPS before special items
$ 0.63

$ 0.30









Special Items





Restructuring, goodwill impairment, and other special (charges) credits, net (a)

11





Loss on asset dispositions and impairments, net (b)

(7 )

(33 )


Total special items – pre-tax

4


(33 )


Income tax benefit for special items (c)

1


4


Total special items – after-tax

5


(29 )









Income from continuing operations
$ 129

$ 29


EPS including special items
$ 0.65

$ 0.15









(a)


During the three months ended March 31, 2012, the Company recorded a favorable adjustment of $11 million to reverse a portion of its litigation



reserve.




(b)


During the three months ended March 31, 2012, the net loss primarily relates to the sale of one wholly-owned hotel.



During the three months ended March 31, 2011, the net loss primarily related to an impairment of a minority investment in a joint venture hotel



located in Japan.




(c)


For both periods presented, represents income taxes on the special items. The three months ended March 31, 2012 also includes the



recognition of a deferred tax adjustment associated with a previous transaction.



The three months ended March 31, 2011 also includes a benefit related to the reversal of income tax reserves associated with prior dispositions.



The Company has included the above supplemental information concerning special items to assist investors in analyzing Starwood’s financial position and results of operations. The Company has chosen to provide this information to investors to enable them to perform meaningful comparisons of past, present and future operating results and as a means to emphasize the results of core on-going operations.

Starwood will be conducting a conference call to discuss the first quarter financial results at 10:30 a.m. (EDT) today at (706) 758-8764 with conference ID 66945366. The conference call will be available through a simultaneous webcast in the News & Events section of the Company’s website at http://www.starwoodhotels.com/corporate/investor_relations.html. A replay of the conference call will also be available from 1:30 p.m. (EDT) today through Thursday, May 3, 2012 at 12:00 midnight (EDT) by telephone at (855) 859-2056 with conference ID 66945366 and webcast on the corporate website.

Definitions

All references to EPS, unless otherwise noted, reflect earnings per diluted share from continuing operations attributable to Starwood’s common stockholders. All references to continuing operations, discontinued operations and net income reflect amounts attributable to Starwood’s common stockholders (i.e. excluding amounts attributable to noncontrolling interests). All references to “net capital expenditures” mean gross capital expenditures for timeshare and fractional inventory net of cost of sales. EBITDA represents net income before interest expense, taxes, depreciation and amortization. The Company believes that EBITDA is a useful measure of the Company’s operating performance due to the significance of the Company’s long-lived assets and level of indebtedness. EBITDA is a commonly used measure of performance in its industry which, when considered with GAAP measures, the Company believes gives a more complete understanding of the Company’s operating performance. It also facilitates comparisons between the Company and its competitors. The Company’s management has historically adjusted EBITDA (i.e., “Adjusted EBITDA”) when evaluating operating performance for the Company, as well as for individual properties or groups of properties, because the Company believes that the inclusion or exclusion of certain recurring and non-recurring items, such as restructuring, goodwill impairment and other special charges and gains and losses on asset dispositions and impairments, is necessary to provide the most accurate measure of core operating results and as a means to evaluate comparative results. The Company’s management also uses Adjusted EBITDA as a measure in determining the value of acquisitions and dispositions and it is used in the annual budget process. The Company has historically reported this measure to its investors and believes that the continued inclusion of Adjusted EBITDA provides consistency in its financial reporting and enables investors to perform more meaningful comparisons of past, present and future operating results and provides a means to evaluate the results of its core on-going operations. EBITDA and Adjusted EBITDA are not intended to represent cash flow from operations as defined by GAAP and such metrics should not be considered as an alternative to net income, cash flow from operations or any other performance measure prescribed by GAAP. The Company’s calculation of EBITDA and Adjusted EBITDA may be different from the calculations used by other companies and, therefore, comparability may be limited.

All references to Same-Store Owned Hotels reflect the Company’s owned, leased and consolidated joint venture hotels, excluding condo hotels, hotels sold to date and hotels undergoing significant repositionings or for which comparable results are not available (i.e., hotels not owned during the entire periods presented or closed due to seasonality or natural disasters). References to Company-Operated Hotel metrics (e.g. REVPAR) reflect metrics for the Company’s owned, leased and managed hotels. References to System-wide metrics (e.g. REVPAR) reflect metrics for the Company’s owned, managed and franchised hotels. REVPAR is defined as revenue per available room. ADR is defined as average daily rate.

All references to revenues in constant dollars represent revenues, excluding the impact of the movement of foreign exchange rates. The Company calculates revenues in constant dollars by calculating revenues for the current year using the prior year’s exchange rates. The Company uses this revenue measure to better understand the underlying results and trends of the business, excluding the impact of movements in foreign exchange rates.

All references to contract sales or originated sales reflect vacation ownership sales before revenue adjustments for percentage of completion accounting methodology. All references to earnings from vacation ownership and residential represents operating income before depreciation expense. All references to management and franchise revenues represent base and incentive fees, franchise fees, amortization of deferred gains resulting from the sales of hotels subject to long-term management contracts and termination fees.

Starwood Hotels & Resorts Worldwide, Inc. is one of the leading hotel and leisure companies in the world with 1,103 properties in nearly 100 countries and 154,000 employees at its owned and managed properties. Starwood is a fully integrated owner, operator and franchisor of hotels, resorts and residences with the following internationally renowned brands: St. Regis®, The Luxury Collection®, W®, Westin®, Le Méridien®, Sheraton®, Four Points® by Sheraton, Aloft®, and ElementSM. The Company boasts one of the industry’s leading loyalty programs, Starwood Preferred Guest (SPG), allowing members to earn and redeem points for room stays, room upgrades and flights, with no blackout dates. Starwood also owns Starwood Vacation Ownership, Inc., a premier provider of world-class vacation experiences through villa-style resorts and privileged access to Starwood brands. For more information, including reconciliations of non-GAAP financial measures to GAAP financial measures, please visit www.starwoodhotels.com or contact Investor Relations at (203) 351-3500.

Note: This press release contains forward-looking statements within the meaning of federal securities regulations. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties and other factors that may cause actual results to differ materially from those anticipated at the time the forward-looking statements are made. Further results, performance and achievements may be affected by general economic conditions including the impact of war and terrorist activity, natural disasters, business and financing conditions (including the condition of credit markets in the U.S. and internationally), foreign exchange fluctuations, cyclicality of the real estate (including residential) and the hotel and vacation ownership businesses, operating risks associated with the hotel, vacation ownership and residential businesses, relationships with associates and labor unions, customers and property owners, the impact of the internet reservation channels, our reliance on technology, domestic and international political and geopolitical conditions, competition, governmental and regulatory actions (including the impact of changes in U.S. and foreign tax laws and their interpretation), travelers’ fears of exposure to contagious diseases, risk associated with the level of our indebtedness, risk associated with potential acquisitions and dispositions and the introduction of new brand concepts and other risks and uncertainties. These risks and uncertainties are presented in detail in our filings with the Securities and Exchange Commission. Future vacation ownership units indicated in this press release include planned units on land owned by the Company or by joint ventures in which the Company has an interest that have received all major governmental land use approvals for the development of vacation ownership resorts. There can also be no assurance that such units will in fact be developed and, if developed, the time period of such development (which may be more than several years in the future). Some of the projects may require additional third-party approvals or permits for development and build out and may also be subject to legal challenges as well as a commitment of capital by the Company. The actual number of units to be constructed may be significantly lower than the number of future units indicated. There can also be no assurance that agreements will be entered into for the hotels in the Company’s pipeline and, if entered into, the timing of any agreement and the opening of the related hotel. Although we believe the expectations reflected in forward-looking statements are based upon reasonable assumptions, we can give no assurance that our expectations will be attained or that results will not materially differ. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

STARWOOD HOTELS & RESORTS WORLDWIDE, INC.

Unaudited Consolidated Statements of Income

(In millions, except per share data)














Three Months Ended

March 31,









2012



2011



%

Variance





Revenues













Owned, leased and consolidated joint venture hotels


$ 402


$ 410


(2.0 )




Vacation ownership and residential sales and services



514



153


n/m




Management fees, franchise fees and other income



201



177


13.6




Other revenues from managed and franchised
properties (a)





598



555


7.7









1,715



1,295


32.4




Costs and Expenses













Owned, leased and consolidated joint venture hotels



349



361


3.3




Vacation ownership and residential



393



111


n/m




Selling, general, administrative and other



96



80


(20.0 )




Restructuring, goodwill impairment and other special
charges (credits), net





(11 )





n/m




Depreciation



57



60


5.0




Amortization



6



8


25.0




Other expenses from managed and franchised
properties (a)





598



555


(7.7 )









1,488



1,175


(26.6 )




Operating income



227



120


89.2




Equity (losses) earnings and gains and (losses) from
unconsolidated ventures, net





10



4


n/m




Interest expense, net of interest income of $0 and $1



(49 )


(54 )

9.3




Gain (loss) on asset dispositions and impairments, net



(7 )


(33 )

78.8




Income from continuing operations before taxes and
noncontrolling interests





181



37


n/m




Income tax benefit (expense)



(52 )


(10 )

n/m




Income (loss) from continuing operations



129



27


n/m




Discontinued Operations:















Income (loss) from operations, net of tax















Gain (loss) on dispositions, net of tax



( (1 )


(1 )






Net income (loss)



128



26


n/m




Net loss (income) attributable to noncontrolling interests







2


(100.0 )




Net income (loss) attributable to Starwood


$ 128


$ 28


n/m




Earnings (Losses) Per Share – Basic













Continuing operations


$ 0.67


$ 0.16


n/m




Discontinued operations







(0.01 )

(100.0 )




Net income (loss)


$ 0.67


$ 0.15


n/m




Earnings (Losses) Per Share – Diluted













Continuing operations


$ 0.65


$ 0.15


n/m




Discontinued operations







(0.01 )

(100.0 )




Net income (loss)


$ 0.65


$ 0.14


n/m




Amounts attributable to Starwood’s Common
Stockholders















Continuing operations


$ 129


$ 29


n/m




Discontinued operations



(1 )


(1 )






Net income (loss)


$ 128


$ 28


n/m



















Weighted average number of shares



192



187







Weighted average number of shares assuming dilution



197



194






















(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.

n/m = not meaningful

STARWOOD HOTELS & RESORTS WORLDWIDE, INC.

Consolidated Balance Sheets

(In millions, except share data)












March 31,

2012


December 31,

2011





(unaudited)

Assets





Current assets:





Cash and cash equivalents


$ 657

$ 454
Restricted cash



178


232
Accounts receivable, net of allowance for doubtful accounts of $49 and $46



565


569
Inventories



575


812

Securitized vacation ownership notes receivable, net of allowance for doubtful
accounts of $9 and $10





62




64


Current deferred tax asset



276


278
Prepaid expenses and other



149


125
Total current assets



2,462


2,534
Investments



271


259
Plant, property and equipment, net



3,302


3,270
Goodwill and intangible assets, net



2,067


2,057
Deferred tax assets



626


639
Other assets (a)



385


355
Securitized vacation ownership notes receivable



411


446
Total assets


$ 9,524

$ 9,560
Liabilities and Stockholders’ Equity





Current liabilities:





Short-term borrowings and current maturities of long-term debt (b)


$ 552

$ 3
Accounts payable



116


144
Current maturities of long-term securitized vacation ownership debt



125


130
Accrued expenses



1,119


1,177
Accrued salaries, wages and benefits



307


375
Accrued taxes and other



131


163
Total current liabilities



2,350


1,992
Long-term debt (b)



1,648


2,194
Long-term securitized vacation ownership debt



364


402
Deferred income taxes



47


46
Other liabilities



1,947


1,971





6,356


6,605
Commitments and contingencies












Stockholders’ equity:





Common stock; $0.01 par value; authorized 1,000,000,000 shares;









outstanding 197,162,892 and 195,913,400 shares at March 31, 2012









and December 31, 2011, respectively



2


2
Additional paid-in capital



1,005


963
Accumulated other comprehensive loss



(309 )

(348 )
Retained earnings



2,465


2,337
Total Starwood stockholders’ equity



3,163


2,954
Noncontrolling interest



5


1
Total stockholders’ equity



3,168


2,955
Total liabilities and stockholders’ equity


$ 9,524

$ 9,560











(a)


Includes restricted cash of $3 million and $2 million at March 31, 2012 and December 31, 2011, respectively.




(b)


Excludes Starwood’s share of unconsolidated joint venture debt aggregating approximately $413 million and $432 million at

March 31, 2012 and December 31, 2011, respectively.




STARWOOD HOTELS & RESORTS WORLDWIDE, INC.

Non-GAAP to GAAP Reconciliations – Historical Data

(In millions)












Three Months Ended

March 31,










2012



2011



%
Variance







Reconciliation of Net Income (Loss) to EBITDA and
Adjusted EBITDA
















Net income (loss)

$ 128


$ 28

n/m






Interest expense (a)


49



59

(16.9 )






Income tax (benefit) expense (b)


53



11

n/m






Depreciation (c)


64



68

(5.9 )






Amortization (d)


7



9

(22.2 )






EBITDA


301



175

72.0






Loss on asset dispositions and impairments, net


7



33

(78.8 )






Restructuring, goodwill impairment and other special
charges (credits), net




(11 )




n/m






Adjusted EBITDA

$ 297


$ 208

42.8




















(a)


Includes $0 million and $4 million of Starwood’s share of interest expense of unconsolidated joint ventures for the three months ended March 31,

2012 and 2011, respectively.




(b)


Includes $1 million of tax expense (benefit) recorded in discontinued operations for each of the three months ended March 31, 2012 and 2011,

respectively.




(c)


Includes $7 million and $8 million of Starwood’s share of depreciation expense of unconsolidated joint ventures for the three months ended

March 31, 2012 and 2011, respectively.




(d)


Includes $1 million of Starwood’s share of amortization expense of unconsolidated joint ventures for each of the three months ended March 31,

2012 and 2011, respectively.




Non-GAAP to GAAP Reconciliations – Branded Same-Store Owned Hotels Worldwide

(In millions)










Three Months Ended

March 31, 2012





$ Change


% Variance

Revenue





Revenue increase (GAAP)


$ 13
4.1 %
Impact of changes in foreign exchange rates



1
0.4 %
Revenue increase in constant dollars


$ 14
4.5 %







Expense





Expense increase (GAAP)


$ 6
2.1 %
Impact of changes in foreign exchange rates



1
0.5 %
Expense increase in constant dollars


$ 7
2.6 %









Non-GAAP to GAAP Reconciliation –

Earnings from Vacation Ownership and Residential Business

(In millions)










Three Months Ended

March 31,





2012


2011


$

Variance










Earnings from vacation ownership and residential


$ 121

$ 42

$ 79
Depreciation expense



(5 )

(7 )

2

Operating income from vacation ownership and residential


$ 116

$ 35

$ 81














Non-GAAP to GAAP Reconciliation –

Earnings from Bal Harbour

(In millions)




































Three Months Ended

March 31,


















2012


2011


$

Variance























Earnings from Bal Harbour















$ 78
$ (2 )
$ 80
Depreciation expense





















Operating income from Bal Harbour















$ 78
$ (2 )
$ 80


























STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Non-GAAP to GAAP Reconciliations – Future Performance
(In millions, except per share data)

Low Case



Three Months Ended
June 30, 2012


Year Ended
December 31, 2012








$ 115
Net income

$ 469




53
Interest expense
210


50
Income tax expense
200


72
Depreciation and amortization
295


290
EBITDA
1,174



(Gain) loss on asset dispositions and impairments, net
7



Restructuring, goodwill impairment and other special charges
(credits), net


(11

)


$ 290
Adjusted EBITDA

$ 1,170








Three Months Ended
June 30, 2012



Year Ended
December 31, 2012









$ 115
Income from continuing operations before special items

$ 465

$ 0.58

EPS before special items



$ 2.35










Special Items





Restructuring and other special credits


11



Gain (loss) on asset dispositions and impairments, net


(7 )



Total special items – pre-tax


4



Income tax benefit associated with special items




1



Total special items – after-tax


5








$ 115
Income from continuing operations

$ 470

$ 0.58
EPS including special items

$ 2.38







High Case

Three Months Ended
June 30, 2012


Year Ended
December 31, 2012








$ 122
Net income

$ 490




53
Interest expense
210


53
Income tax expense
209


72
Depreciation and amortization
295


300
EBITDA
1,204



(Gain) loss on asset dispositions and impairments, net
7



Restructuring, goodwill impairment and other special charges
(credits), net


(11

)


$ 300
Adjusted EBITDA

$ 1,200








Three Months Ended
June 30, 2012



Year Ended
December 31, 2012









$ 122
Income from continuing operations before special items

$ 486

$ 0.62

EPS before special items



$ 2.46










Special Items





Restructuring and other special credits


11



Gain (loss) on asset dispositions and impairments, net


(7 )



Total special items – pre-tax


4



Income tax benefit associated with special items


1



Total special items – after-tax


5








$ 122
Income from continuing operations

$ 491

$ 0.62
EPS including special items

$ 2.48










STARWOOD HOTELS & RESORTS WORLDWIDE, INC.

Non-GAAP to GAAP Reconciliations –

Future Earnings from Vacation Ownership and Residential Business

Excluding Bal Harbour

(In millions)

Low Case








Three Months Ended

June 30,




2012


2011


$
Variance









Earnings from vacation ownership and residential

$ 34

$ 34

$
Depreciation expense


(5 )

(5 )

Operating income from vacation ownership and residential



$ 29

$ 29

$

















Year Ended
December 31, 2012







Earnings from vacation ownership and residential



$ 150
Depreciation expense




(20 )
Operating income from vacation ownership and residential



$ 130








High Case










Three Months Ended
June 30,





2012


2011


$
Variance










Earnings from vacation ownership and residential


$ 39
$ 34
$ 5
Depreciation expense


(5)
(5)
Operating income from vacation ownership and residential


$ 34
$ 29
$ 5













Year Ended
December 31, 2012







Earnings from vacation ownership and residential



$ 155
Depreciation expense




(20 )
Operating income from vacation ownership and residential



$ 135








STARWOOD HOTELS & RESORTS WORLDWIDE, INC.

Non-GAAP to GAAP Reconciliations –

Future Earnings from Bal Harbour

(In millions)






Three Months Ended
June 30,



2012


2011


$
Variance








Earnings from Bal Harbour
$ 15
$ (3 )
$ 18
Depreciation expense






Operating income from Bal Harbour


$ 15
$ (3 )
$ 18






Year Ended
December 31, 2012










Earnings from Bal Harbour





$ 100
Depreciation expense







Operating income from Bal Harbour





$ 100










STARWOOD HOTELS & RESORTS WORLDWIDE, INC.

Non-GAAP to GAAP Reconciliations – Same Store Owned Hotel Revenue and Expenses

(In millions)










Three Months Ended

March 31,





Same-Store Owned Hotels

Worldwide


2012


2011


%
Variance
















Revenue









Same-Store Owned Hotels (a)
$ 352
$ 337
4.5




Hotels Sold or Closed in 2012 and 2011
2
31
(93.5)




Hotels Without Comparable Results
42
36
16.7




Other ancillary hotel operations
6
6




Total Owned, Leased and Consolidated Joint Venture Hotels
Revenue


$ 402
$ 410
(2.0)















Costs and Expenses









Same-Store Owned Hotels (a)
$ 294
$ 287
(2.4)




Hotels Sold or Closed in 2012 and 2011
2
31
93.5




Hotels Without Comparable Results
47
37
(27.0)




Other ancillary hotel operations
6
6




Total Owned, Leased and Consolidated Joint Venture Hotels Costs
and Expenses


$ 349
$ 361
3.3

























Three Months Ended

March 31,





Same-Store Owned Hotels

North America


2012
2011

%
Variance
















Revenue









Same-Store Owned Hotels (a)
$ 210
$ 202
4.0




Hotels Sold or Closed in 2012 and 2011
2
27
(92.6)




Hotels Without Comparable Results
32
25
28.0




Other ancillary hotel operations






Total Owned, Leased and Consolidated Joint Venture Hotels
Revenue


$ 244
$ 254
(3.9)















Costs and Expenses









Same-Store Owned Hotels (a)
$ 178
$ 173
2.9




Hotels Sold or Closed in 2012 and 2011
2
27
92.6




Hotels Without Comparable Results
33
21
(57.1)




Other ancillary hotel operations






Total Owned, Leased and Consolidated Joint Venture Hotels Costs
and Expenses


$ 213
$ 221
3.6

























Three Months Ended

March 31,





Same-Store Owned Hotels

International


2012


2011


%
Variance
















Revenue









Same-Store Owned Hotels (a)
$ 142
$ 135
5.2




Hotels Sold or Closed in 2012 and 2011

4
(100.0)




Hotels Without Comparable Results
10
11
(9.1)




Other ancillary hotel operations
6
6




Total Owned, Leased and Consolidated Joint Venture Hotels
Revenue


$ 158
$ 156
1.3















Costs and Expenses









Same-Store Owned Hotels (a)
$ 116
$ 114
(1.8)




Hotels Sold or Closed in 2012 and 2011

4
100.0




Hotels Without Comparable Results
14
16
12.5




Other ancillary hotel operations
6
6




Total Owned, Leased and Consolidated Joint Venture Hotels Costs
and Expenses


$ 136
$ 140
2.9

(a)


Same-Store Owned Hotel results exclude five hotels sold and 11 hotels without comparable results for the three months ended

March 31, 2012.

n/m = not meaningful

Starwood Hotels & Resorts Worldwide, Inc.
Systemwide(1) Statistics - Same Store
For the Three Months Ended March 31,
UNAUDITED












































Systemwide - Worldwide


Systemwide - North America


Systemwide - International





2012




2011


Variance


2012


2011


Variance


2012


2011


Variance














































































TOTAL HOTELS





































REVPAR ($)

110.02



104.00



5.8 %


109.08



101.84



7.1 %


111.28



106.89



4.1 %

ADR ($)


168.60



165.81



1.7 %


160.74



156.54



2.7 %


180.16



179.43



0.4 %

Occupancy (%)

65.3%


62.7%


2.6



67.9%


65.1%


2.8



61.8%


59.6%


2.2















































































SHERATON





































REVPAR ($)

92.82



88.20



5.2 %


90.06



84.42



6.7 %


96.20



92.86



3.6 %

ADR ($)


147.41



144.70



1.9 %


136.64



133.15



2.6 %


162.09



160.30



1.1 %

Occupancy (%)

63.0%


61.0%


2.0



65.9%


63.4%


2.5



59.3%


57.9%


1.4















































































WESTIN





































REVPAR ($)

127.05



118.56



7.2 %


125.50



117.46



6.8 %


131.08



121.40



8.0 %

ADR ($)


182.96



179.44



2.0 %


177.65



172.81



2.8 %


197.65



198.59



(0.5 %)

Occupancy (%)

69.4%


66.1%


3.3



70.6%


68.0%


2.6



66.3%


61.1%


5.2















































































ST. REGIS/LUXURY COLLECTION


































REVPAR ($)

177.01



172.32



2.7 %


222.82



208.85



6.7 %


151.22



151.53



(0.2 %)

ADR ($)


291.65



290.86



0.3 %


325.46



311.92



4.3 %


268.52



276.23



(2.8 %)

Occupancy (%)

60.7%


59.2%


1.5



68.5%


67.0%


1.5



56.3%


54.9%


1.4















































































LE MERIDIEN





































REVPAR ($)

120.65



117.14



3.0 %


170.06



161.26



5.5 %


115.38



112.40



2.7 %

ADR ($)


182.36



181.99



0.2 %


218.38



211.15



3.4 %


177.75



178.19



(0.2 %)

Occupancy (%)

66.2%


64.4%


1.8



77.9%


76.4%


1.5



64.9%


63.1%


1.8















































































W






































REVPAR ($)

195.40



180.09



8.5 %


185.30



170.36



8.8 %


232.24



215.52



7.8 %

ADR ($)


266.32



255.59



4.2 %


249.47



240.77



3.6 %


331.56



310.59



6.8 %

Occupancy (%)

73.4%


70.5%


2.9



74.3%


70.8%


3.5



70.0%


69.4%


0.6















































































FOUR POINTS





































REVPAR ($)

74.55



70.07



6.4 %


67.57



63.47



6.5 %


86.09



80.95



6.3 %

ADR ($)


115.95



113.11



2.5 %


105.21



103.23



1.9 %


133.67



129.06



3.6 %

Occupancy (%)

64.3%


61.9%


2.4



64.2%


61.5%


2.7



64.4%


62.7%


1.7















































































ALOFT





































REVPAR ($)

70.35



64.29



9.4 %


69.82



63.46



10.0 %













ADR ($)


106.53



109.47



(2.7 %)


106.34



106.46



(0.1 %)













Occupancy (%)

66.0%


58.7%


7.3



65.7%


59.6%


6.1









































































































































































(1) Includes same store owned, leased, managed, and franchised hotels








































Starwood Hotels & Resorts Worldwide, Inc.
Worldwide Hotel Results - Same Store
For the Three Months Ended March 31,
UNAUDITED
































Systemwide (1)


Company Operated (2)





2012




2011




Variance




2012




2011




Variance
























































TOTAL WORLDWIDE
























REVPAR ($)

110.02



104.00



5.8 %


124.95



117.73



6.1 %

ADR ($)


168.60



165.81



1.7 %


189.64



185.32



2.3 %

Occupancy (%)

65.3%


62.7%


2.6



65.9%


63.5%


2.4























































NORTH AMERICA

























REVPAR ($)


109.08



101.84



7.1 %


138.03



128.24



7.6 %

ADR ($)


160.74



156.54



2.7 %


195.46



187.19



4.4 %

Occupancy (%)

67.9%


65.1%


2.8



70.6%


68.5%


2.1























































EUROPE

























REVPAR ($)


110.63



112.80



(1.9 %)


118.20



120.67



(2.0 %)

ADR ($)


193.21



200.19



(3.5 %)


201.61



209.71



(3.9 %)

Occupancy (%)

57.3%


56.3%


1.0



58.6%


57.5%


1.1























































AFRICA & MIDDLE EAST
























REVPAR ($)


123.42



120.63



2.3 %


123.98



121.54



2.0 %

ADR ($)


191.47



196.59



(2.6 %)


192.93



198.50



(2.8 %)

Occupancy (%)

64.5%


61.4%


3.1



64.3%


61.2%


3.1























































ASIA PACIFIC

























REVPAR ($)


108.78



101.92



6.7 %


109.76



101.01



8.7 %

ADR ($)


171.54



167.90



2.2 %


173.50



167.31



3.7 %

Occupancy (%)

63.4%


60.7%


2.7



63.3%


60.4%


2.9























































LATIN AMERICA

























REVPAR ($)


106.17



92.79



14.4 %


116.96



99.25



17.8 %

ADR ($)


169.64



153.17



10.8 %


178.31



161.78



10.2 %

Occupancy (%)

62.6%


60.6%


2.0



65.6%


61.3%


4.3


















































































(1) Includes same store owned, leased, managed, and franchised hotels






(2) Includes same store owned, leased, and managed hotels










































Starwood Hotels & Resorts Worldwide, Inc.
Owned Hotel Results - Same Store (1)
For the Three Months Ended March 31,
UNAUDITED

























































































WORLDWIDE


NORTH AMERICA


INTERNATIONAL







2012




2011




Variance




2012




2011




Variance




2012




2011




Variance











































TOTAL HOTELS









48 Hotels












24 Hotels












24 Hotels






REVPAR ($)





148.15



141.43



4.8 %


156.95



150.89



4.0 %


136.80



129.30



5.8 %
ADR ($)





213.39



206.77



3.2 %


218.38



210.32



3.8 %


206.41



201.67



2.4 %
Occupancy (%)





69.4%


68.4%


1.0



71.9%


71.7%


0.2



66.3%


64.1%


2.2










































Total Revenue





351,912



337,326



4.3 %


210,213



202,480



3.8 %


141,699



134,846



5.1 %
Total Expenses





293,655



287,594



(2.1 %)


177,431



173,485



(2.3 %)


116,224



114,109



(1.9 %)




































































































































































BRANDED HOTELS








43 Hotels












19 Hotels












24 Hotels






REVPAR ($)





151.96



145.36



4.5 %


165.82



160.11



3.6 %


136.80



129.30



5.8 %
ADR ($)





216.01



208.45



3.6 %


223.87



213.78



4.7 %


206.41



201.67



2.4 %
Occupancy (%)





70.3%


69.7%


0.6



74.1%


74.9%


(0.8 )


66.3%


64.1%


2.2










































Total Revenue





332,349



319,122



4.1 %


190,650



184,277



3.5 %


141,699



134,846



5.1 %
Total Expenses





274,576



268,820



(2.1 %)


158,352



154,711



(2.4 %)


116,224



114,109



(1.9 %)



























































































































(1) Hotel results exclude five hotels sold and 11 hotels without comparable results during 2011 & 2012














* Revenues & Expenses above are represented in '000's














































































STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Management Fees, Franchise Fees and Other Income
For the Three Months Ended March 31,
UNAUDITED ($ millions)


























Worldwide




2012


2011


$ Variance
% Variance











Management Fees:









Base Fees


76
67
9
13.4%
Incentive Fees


39
30
9
30.0%
Total Management Fees


115
97
18
18.6%











Franchise Fees


45
43
2
4.7%











Total Management & Franchise Fees


160
140
20
14.3%











Other Management & Franchise Revenues (1)


36
32
4
12.5%











Total Management & Franchise Revenues


196
172
24
14.0%











Other


5
5
0
0.0%











Management Fees, Franchise Fees & Other Income


201
177
24
13.6%






















(1) Other Management & Franchise Revenues includes the amortization of deferred gains of approximately $21 in
2012 and 2011, resulting from the sales of hotels subject to long-term management contracts and termination
fees.



STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Vacation Ownership & Residential Revenues and Expenses
For the Three Months Ended March 31,
UNAUDITED ($ millions)

















































2012


2011


$ Variance
% Variance














Originated Sales Revenues (1) -- Vacation Ownership Sales 83

82

1

1.2 %
Other Sales and Services Revenues (2)


70

66

4

6.1 %
Deferred Revenues -- Percentage of Completion

1

-

1

0.0 %
Deferred Revenues -- Other (3)


(2 )
(1 )
(1 )
(100.0 %)
Vacation Ownership Sales and Services Revenues

152

147

5

3.4 %
Residential Sales and Services Revenues (4)

362

6

356

n/m
Total Vacation Ownership & Residential Sales and Services Revenues 514

153

361

n/m














Originated Sales Expenses (5) -- Vacation Ownership Sales 59

58

(1 )
(1.7 %)
Other Expenses (6)




53

48

(5 )
(10.4 %)
Deferred Expenses -- Percentage of Completion

-

-

-

0.0 %
Deferred Expenses -- Other



3

3

-

0.0 %
Vacation Ownership Expenses


115

109

(6 )
(5.5 %)
Residential Expenses (4)



278

2

(276 )
n/m
Total Vacation Ownership & Residential Expenses

393

111

(282 )
n/m




























(1) Timeshare sales revenue originated at each sales location before deferrals of revenue for U.S. GAAP reporting purposes
(2) Includes resort income, interest income, and miscellaneous other revenues





(3) Includes deferral of revenue for contracts still in rescission period, contracts that do not yet meet the requirements of ASC 978-605-25
and provision for loan loss

(4) For 2012, includes $356 million of revenues and $278 million of expenses associated with the St. Regis Bal Harbour residential project
(5) Timeshare cost of sales and sales & marketing expenses before deferrals of sales expenses for U.S. GAAP reporting purposes
(6) Includes resort, general and administrative, and other miscellaneous expenses































Note: Deferred revenue is calculated based on the Percentage of Completion ("POC") of the project. Deferred expenses, also based on POC, include
product costs and direct sales and marketing costs only. Indirect sales and marketing costs are not deferred per ASC 978-720-25 and ASC 978-340-25.














n/m = not meaningful


































STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Hotels Without Comparable Results & Other Selected Items
As of March 31, 2012
UNAUDITED ($ millions)




































































Properties without comparable results in 2012 and 2011:


Revenues and Expenses Associated with Assets Sold or Closed in 2012 and 2011: (1)

















Property



Location














St. Regis Bal Harbour



Bal Harbour, FL



Q1


Q2


Q3


Q4


Full Year
The Westin Peachtree Plaza

Atlanta, GA


Hotels Sold or Closed in 2011:








W New Orleans - French Quarter

New Orleans, LA


2011








W London

London, England


Revenues $ 28
$ 23
$ 5
$ -
$ 56
Grand Hotel - Florence

Florence, Italy


Expenses (excluding depreciation) $ 28
$ 19
$ 4
$ -
$ 51
Sheraton Kauai

Koloa, HI












Hotel Alfonso

Seville, Spain


Hotels Sold or Closed in 2012:








Four Points Tucson

Tucson, AZ


2012








The Clarion Hotel

Millbrae, CA


Revenues $ 2
$ -
$ -
$ -
$ 2
Hotel Gritti Palace

Venice, Italy


Expenses (excluding depreciation) $ 2
$ -
$ -
$ -
$ 2
Hotel Maria Cristina

San Sebastian, Spain

















2011















Revenues $ 3
$ 3
$ 2
$ 2
$ 10







Expenses (excluding depreciation) $ 3
$ 3
$ 3
$ 1
$ 10

















Properties sold or closed in 2012 and 2011:


(1) Results consist of 1 hotel sold in 2012 and 4 hotels sold in 2011. These amounts are included in the revenues and







expenses from owned, leased and consolidated joint venture hotels in the statements of income for 2012 and 2011.

Property



Location














Atlanta Perimeter

Atlanta, GA












Hotel Bristol

Vienna, Austria












The Westin Gaslamp Quarter

San Diego, CA












W City Center

Chicago, IL












Boston Park Plaza

Boston, MA














































STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Capital Expenditures
For the Three Months Ended March 31, 2012
UNAUDITED ($ millions)



























Maintenance Capital Expenditures: (1)







Owned, Leased and Consolidated Joint Venture Hotels






11
Corporate/IT






18
Subtotal






29









Vacation Ownership Capital Expenditures:







Net capital expenditures for inventory (excluding St. Regis Bal Harbour) (2)








(11 )
Capital expenditures for inventory - St.Regis Bal Harbour






12
Subtotal






1









Development Capital






50









Total Capital Expenditures






80


















(1) Maintenance capital expenditures include improvements that extend the useful life of the asset.
(2) Represents gross inventory capital expenditures of $10M in the three months ended March 31, 2012,
less cost of sales of $21M in the three months ended March 31, 2012.

























Starwood Hotels & Resorts Worldwide, Inc.
2012 Divisional Hotel Inventory Summary by Ownership by Brand*
As of March 31, 2012




























































































NAD




EUROPE




AME




LAD




ASIA




Total


Hotels


Rooms






Hotels


Rooms






Hotels


Rooms






Hotels


Rooms






Hotels


Rooms






Hotels


Rooms

Owned











































Sheraton
6
3,528




4
705




-
-




5
2,699




2
821




17
7,753
Westin
4
2,399




3
650




-
-




3
902




1
273




11
4,224
Four Points
2
327




-
-




-
-




-
-




-
-




2
327
W
5
1,795




2
665




-
-




-
-




-
-




7
2,460
Luxury Collection
1
643




5
584




-
-




1
181




-
-




7
1,408
St. Regis
3
702




2
261




-
-




-
-




1
160




6
1,123
Le Meridien
-
-




-
-




-
-




-
-




-
-




-
-
Aloft
2
272




-
-




-
-




-
-




-
-




2
272
Element
1
123




-
-




-
-




-
-




-
-




1
123
Other
6
1,654




-
-




-
-




-
-




-
-




6
1,654
Total Owned
30
11,443




16
2,865




-
-




9
3,782




4
1,254




59
19,344













































Managed & UJV











































Sheraton
38
26,523




41
11,924




32
8,907




15
2,938




75
26,963




201
77,255
Westin
54
28,377




12
4,098




4
1,086




3
886




29
9,872




102
44,319
Four Points
1
171




6
1,013




7
1,329




4
517




15
4,612




33
7,642
W
23
6,902




3
364




1
441




2
433




6
1,436




35
9,576
Luxury Collection
4
1,648




19
2,997




5
1,384




7
290




6
1,440




41
7,759
St. Regis
9
1,811




2
223




1
377




2
309




8
2,049




22
4,769
Le Meridien
4
607




21
6,131




31
7,073




-
-




26
7,236




82
21,047
Aloft
-
-




2
399




1
408




2
281




5
1,034




10
2,122
Element
-
-




-
-




-
-




-
-




-
-




-
-
Other
1
773




1
165




-
-




-
-




-
-




2
938
Total Managed & UJV
134
66,812




107
27,314




82
21,005




35
5,654




170
54,642




528
175,427













































Franchised











































Sheraton
160
47,721




15
4,108




2
403




9
2,332




14
6,288




200
60,852
Westin
60
19,472




3
1,176




-
-




4
1,309




8
2,231




75
24,188
Four Points
105
16,617




5
835




-
-




8
1,276




8
1,441




126
20,169
W
-
-




-
-




-
-




-
-




-
-




-
-
Luxury Collection
8
1,621




11
1,529




-
-




2
248




10
2,359




31
5,757
St. Regis
-
-




-
-




-
-




-
-




-
-




-
-
Le Meridien
8
2,161




5
1,455




-
-




1
111




3
714




17
4,441
Aloft
41
5,965




-
-




-
-




-
-




3
471




44
6,436
Element
9
1,518




-
-




-
-




-
-




-
-




9
1,518
Other
1
275




-
-




-
-




-
-




-
-




1
275
Total Franchised
392
95,350




39
9,103




2
403




24
5,276




46
13,504




503
123,636













































Systemwide











































Sheraton
204
77,772




60
16,737




34
9,310




29
7,969




91
34,072




418
145,860
Westin
118
50,248




18
5,924




4
1,086




10
3,097




38
12,376




188
72,731
Four Points
108
17,115




11
1,848




7
1,329




12
1,793




23
6,053




161
28,138
W
28
8,697




5
1,029




1
441




2
433




6
1,436




42
12,036
Luxury Collection
13
3,912




35
5,110




5
1,384




10
719




16
3,799




79
14,924
St. Regis
12
2,513




4
484




1
377




2
309




9
2,209




28
5,892
Le Meridien
12
2,768




26
7,586




31
7,073




1
111




29
7,950




99
25,488
Aloft
43
6,237




2
399




1
408




2
281




8
1,505




56
8,830
Element
10
1,641




-
-




-
-




-
-




-
-




10
1,641
Other
8
2,702




1
165




-
-




-
-




-
-




9
2,867
Vacation Ownership
12
6,617




-
-




-
-




1
580




-
-




13
7,197
Total Systemwide
568
180,222




162
39,282




84
21,408




69
15,292




220
69,400




1,103
325,604


























































































STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Vacation Ownership Inventory Pipeline
As of March 31, 2012
UNAUDITED
































# Resorts






# of Units (1)
Brand




Total (2)
In
Operations

In Active
Sales







Completed (3)
Pre-sales/
Development (4)

Future
Capacity (5),(6)

Total at
Buildout

























Sheraton




7



7



6









3,079



-



712



3,791


Westin




9

9

9







1,562

22

43

1,627
St. Regis




2

2

-







56

-

-

56
The Luxury Collection




1

1

-







6

-

-

6
Unbranded




2

2

1







99

-

1

100
Total SVO, Inc.




21

21

16







4,802

22

756

5,580

























Unconsolidated Joint Ventures (UJV's)




1

1

1







198

-

-

198
Total including UJV's




22

22

17







5,000

22

756

5,778

























Total Intervals Including UJV's (7)
















260,000

1,144

39,312

300,456

























(1) Lockoff units are considered as one unit for this analysis.
(2) Includes resorts in operation, active sales or future development.
(3) Completed units include those units that have a certificate of occupancy.
(4) Units in Pre-sales/Development are in various stages of development (including the permitting stage), most of which are currently being offered for sale to customers.
(5) Based on owned land and average density in existing marketplaces
(6) Future units indicated above include planned timeshare units on land owned by the Company or applicable UJV that have received all major governmental land use

approvals for the development of timeshare. There can be no assurance that such units will in fact be developed and, if developed, the time period of such development

(which may be more than several years in the future). Some of the projects may require additional third-party approvals or permits for development and build

out and may also be subject to legal challenges as well as a commitment of capital by the Company. The actual number of units to be constructed may be

significantly lower than the number of future units indicated.
(7) Assumes 52 intervals per unit.


.
Contact: 

Starwood Hotels & Resorts Worldwide, Inc.
Investor Contact
Stephen Pettibone, 203-351-3500
or
Media Contact
KC Kavanagh, 866-478-2777

.
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Also See: Starwood Reports Net Income 4th Qtr 2011 of $167 million Compared to $339 million Same Period 2010; Worldwide System-wide RevPAR Up 5.8% / Systemwide Hotel Statistics / February 2012

Starwood Reports Net Income in 3rd Qtr 2011 of $163 million Compared to Loss of $6 million Same Period a Year Earlier; Worldwide System-wide RevPAR Up 11.6% / Systemwide Hotel Statistics / October 2011

Starwood Reports Net Income in 2nd Qtr 2011 of $131 million Compared to $114 million Same Period a Year Earlier; Worldwide System-wide RevPAR Up 11.8% / Systemwide Hotel Statistics / July 2011

Starwood Net Income in 1st Qtr 2011 $28 million Compared to $30 million Same Period a Year Earlier; RevPAR Up 10.4% / Systemwide Hotel Statistics / April 2011

Starwood Net income Rose to $30 million in the 1st Qtr 2010 from $6 million a Year Earlier; RevPAR Up 6.6% with the Most Improvement in Asia / Systemwide Hotel Statistics / April 2010

Starwood Reports $107 million Net Loss for 4th Qtr 2009 Compared to Net Income of $79 million in the 4th Qtr 2008; Takes $362 million Impairment Charge Related to Starwood Vacation Ownership World Wide RevPAR Down 7.9% / Hotel Operating Statistics / February 2010

Starwood Hotels Reports Sharp Drop in 1st Qtr 2009 Net Income - $6 million vs $32 million in 1st Qtr Last Year; Worldwide RevPAR Down 23.5% / Hotel Operating Statistics / April 2009
.

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