| WHITE PLAINS, N.Y. - Jan. 29, 2003 -- Starwood
Hotels & Resorts Worldwide, Inc. (NYSE: HOT - News; "Starwood" or the
"Company") today reported results for the fourth quarter and full year
2002.
Fourth Quarter 2002 Financial Highlights
-
EPS was $0.42, compared to $0.28 loss per share in 2001. EPS excluding
special items was $0.22 compared to $0.01 loss per share in 2001.
-
Total Revenues of $983 million, increased 12.0% when compared to 2001 levels.
-
REVPAR for Same-Store Owned Hotels worldwide increased 9.4% when compared
to 2001. REVPAR for owned and operated Same-Store Hotels in North America
increased 10.6%. Westin, W Hotels and Sheraton owned and operated
Same-Store REVPAR in North America increased 10.9%, 14.2% and 11.0%, respectively.
-
Revenues from the vacation ownership business increased 28.7% to $93 million.
-
Total Company EBITDA was $271 million, an increase of 31.6% compared to
$206 million in 2001. EBITDA at Same-Store Owned Hotels worldwide increased
8.4% to $191 million. EBITDA from the vacation ownership business increased
to $27 million from $5 million in 2001.
-
Total Company EBITDA margin increased approximately 410 basis points to
27.6% when compared to 2001. Excluding the impact of having leased
the Sheraton Manhattan and part of the Sheraton New York Hotel and Towers
to Lehman Brothers during the fourth quarter of 2001, North America Same-Store
Owned Hotel EBITDA increased 13.7% and EBITDA margin increased 120 basis
points in the fourth quarter of 2002. Total Company market share
in North America increased across owned and managed hotels.
Full Year 2002 Financial Results
Full year EPS was $1.20, an increase of 71.4% compared to $0.70 in 2001.
Full year EPS excluding special items was $0.98 compared to $1.00 for 2001.
Full year total Company EBITDA was $1.095 billion, a decrease of 11.0%
compared to $1.230 billion in 2001.
Fourth Quarter Ended December 31, 2002
EPS was $0.42 in 2002, compared to a per share loss of $0.28 in 2001.
EPS excluding special items was $0.22 in 2002 and a loss per share of $0.01
in 2001, and excludes net benefits of approximately $41 million (after-tax)
in 2002 and net charges of $52 million (after-tax) in 2001. Total Revenues
increased $105 million to $983 million when compared to the same period
of 2001. Operating income was $131 million compared to $33 million in the
same period of 2001 and income from continuing operations was $86 million
as compared to a loss of $54 million in the same period of 2001. Results
continued to be adversely impacted by the weak worldwide economic environment
but reflect a significant improvement over the fourth quarter of 2001 which
was impacted by the aftermath of the September 11 attacks. Results benefited
from a $16 million after-tax reduction in goodwill amortization as a result
of a new accounting rule pertaining to goodwill and intangible assets that
became effective on January 1, 2002, offset by an increase in depreciation
expense of $12 million pretax or 10.7% when compared to the fourth quarter
of 2001 due to prior year's renovation programs, the repositioning and
acquisition of certain hotels and investments in technology. EPS including
discontinued operations was $0.45 in the fourth quarter of 2002 compared
to a loss of $0.28 in the same period of 2001.
Year Ended December 31, 2002
For the year ended December 31, 2002, Total Revenues were $3.879 billion
when compared to $3.967 billion in the same period in 2001. EPS was $1.20
compared to $0.70 in 2001. EPS excluding special items was $0.98 compared
to $1.00 in the prior year, and excludes net benefits for special items
of $45 million (after-tax) in 2002 and net charges of $60 million (after-tax)
in 2001. Income from continuing operations increased to $246 million compared
to $145 million in the same period of 2001. EPS including discontinued
operations was $1.73 compared to $0.70 in 2001.
Comments from the CEO
"2002 was a challenging year," said Barry S. Sternlicht, Chairman and
CEO. "The much anticipated global economic recovery never materialized
and business travel remains subdued in the uncertain environment. Booking
patterns remain extremely short and forecasting, as well as pricing, in
this environment is extremely challenging."
"Nonetheless, several positive trends emerged in the fourth quarter
of 2002 which we expect to continue into 2003. First, our European
and Asian operations are quite strong both before and after currency adjustments.
REVPAR is and will likely remain higher in these divisions than in North
America and we are rapidly expanding our distribution in key Asian markets,
maintaining our combined #1 market share in the upscale travel segment.
Latin America, challenged with economic and political unrest, remains profitable
despite a very tough operating environment. Our vacation ownership division
had an excellent year with significant momentum that we expect to extend
well into 2003 and beyond. The strength in these areas, and a projected
flat Latin America performance, will help offset the general weakness in
domestic operations and continued pressures of health care costs, real
estate taxes and insurance. Anticipating this, we have taken and continue
to take costs out of our system while continuing to improve guest satisfaction
in every one of our brands year over year driven by the Sheraton Service
Promise and Westin's product innovations. Several of our brands delivered
systemwide double digit REVPAR increases, gaining important market share
individually and for the Company as a whole."
Concluding, Mr. Sternlicht said, "With the prospects of a war imminent,
forecasting is a difficult exercise. Should the world's economies recover
earlier than is generally forecasted, our businesses are levered to the
upside."
Hotel Operating Results
At the Company's Same-Store Owned Hotels worldwide, revenues for the
fourth quarter of 2002 increased approximately $53 million to $786 million
from $733 million in 2001 and EBITDA for the period increased 8.4% to $191
million from $176 million in 2001. EBITDA at the Company's Same-Store Owned
Hotels in North America increased 4.2% to $144 million in the fourth quarter
of 2002 when compared to the same period of 2001. EBITDA at the Company's
Same-Store Owned Hotels internationally increased 23.6% to approximately
$47 million in the fourth quarter of 2002 when compared to the same period
of 2001. The positive effects of foreign exchange in Europe and Asia Pacific
were more than offset by the weakening of currencies in South America.
Excluding the net unfavorable effects of foreign exchange, EBITDA at the
Company's Same-Store Owned Hotels internationally increased 29.6% in the
fourth quarter of 2002 when compared to the same period in 2001. The improvement
in operating results at Same-Store Owned Hotels when compared to 2001 principally
reflects the favorable comparisons to the fourth quarter of 2001 which
was impacted by the decline in industry-wide demand following the September
11 attacks.
REVPAR at Same-Store Owned Hotels worldwide increased 9.4% in the fourth
quarter of 2002 when compared to the same period of 2001 as a result of
an increase in occupancy rates of 310 basis points to 61.8% and an increase
in ADR of 4.1% from the prior year. REVPAR at Same-Store Owned Hotels in
North America increased 7.7% to $91.68 when compared to the same period
of 2001 as a result of an increase in ADR of 2.7% to $146.14, and increases
in occupancy rates to 62.7% from 59.8% in the prior year. REVPAR at system-wide
operated hotels (Same-Store Owned and managed) in North America increased
10.6% when compared to the same period of 2001 as a result of an increase
in ADR of 2.3% and increases in occupancy rates to 62.7% from 58.0%. Internationally,
Same-Store Owned Hotel REVPAR increased 14.9%, with Europe up 22.2% and
Asia Pacific up 26.7% offset by declines in Latin America of 7.6% (primarily
due to the weakening of the Argentine Peso) when compared to 2001.
EBITDA margins at Same-Store Owned Hotels worldwide were 24.3% in the
fourth quarter of 2002 when compared to 24.0% in the same period of 2001.
In North America, EBITDA margins at Same-Store Owned Hotels were 24.5%
when compared to 24.8% in the same period of 2001. Internationally, EBITDA
margins at Same-Store Owned Hotels were 23.6% when compared to 21.5% in
the same period of 2001.
During the fourth quarter of 2002, the Company signed 10 management
and franchise contracts representing approximately 4,000 rooms and opened
11 new hotels and resorts including: The Westin Kierland Resort & Spa
(Scottsdale AZ, 735 rooms), the Sheraton Wild Horse Pass Resort & Spa
(Phoenix AZ, 500 rooms), The Westin New York at Times Square (366 rooms),
the W San Diego (261 rooms), the Sheraton Centro Historico (Mexico City,
457 rooms), the Westin Shanghai (China, 301 rooms) and the Bora Bora Nui
Resort & Spa (French Polynesia, 117 rooms). New hotel openings scheduled
for the first quarter of 2003 include: Our Lucaya Westin and Sheraton in
Grand Bahama, the Bahamas (approximately 1,270 rooms); Westin Grande Sukhumvit
in Bangkok, Thailand (approximately 388 rooms); and the Westin Leipzig
in Leipzig, Germany (approximately 447 rooms). Including these properties,
through the end of 2003, the Company expects 31 new full service hotels
and resorts around the world, with approximately 9,000 rooms to commence
operations.
Vacation Ownership Operating Results
The Company's vacation ownership division, Starwood Vacation Ownership,
Inc. (SVO), is currently selling VOI inventory at 11 resorts and engaged
in pre-opening sales at the Westin Ka'anapali Ocean Resort Villas in Maui,
Hawaii currently under construction. For the fourth quarter of 2002, revenues
from the timeshare business increased 28.7% to $93 million when compared
to the same period in 2001 and EBITDA increased to $27 million compared
to $5 million in the same period of 2001. For the full year 2002, revenues
increased 6.7% to $363 million and EBITDA increased 42.4% to $98 million
when compared to the same period in 2001. EBITDA margin in 2002 increased
approximately 700 basis points to 27.0%. Contract sales in the fourth quarter
increased approximately 17.4% when compared to the same period in 2001
as sales were particularly strong at the Maui and Mission Hills resorts.
The Company began construction of its fourth Westin-branded interval ownership
resort this year featuring 158 villas located adjacent to the Westin Kierland
Resort & Spa in Scottsdale, Arizona in the fourth quarter of 2002 and
pre-opening sales are expected to begin in early 2003. As part of the ordinary
course of SVO operations, during the fourth quarter of 2002, the Company
sold, on a non-recourse basis, approximately $21 million of notes receivable
originated by the vacation ownership operations, recognizing a pretax gain
of $2.4 million, which is included in the revenue amount discussed above.
No such gain was recognized in the fourth quarter of 2001.
Dispositions
The Company continues to review its worldwide portfolio for disposition
candidates. The newly formed Real Estate Group is focused on restructuring
and enhancing real estate returns or monetizing investments. During the
fourth quarter, the Company sold the Doubletree Hotel Minneapolis for $47
million. The Company expects to realize net proceeds of at least $500 million
from domestic and/or international asset sales by the end of 2003.
Capital
During the fourth quarter of 2002, the Company invested approximately
$122 million in hotel and VOI capital assets, including VOI construction
at Westin Mission Hills Resort Villas in Rancho Mirage, California and
Westin Ka'anapali Ocean Resort Villas in Maui, Hawaii, as well as the ongoing
development of the St. Regis Museum Tower in San Francisco (269 rooms and
102 condominiums). Progress also continues on the flexible new build Sheraton
and Westin prototypes. Other major projects included the renovation of
approximately 370 rooms at the Sheraton New York, the completion of the
renovation of the Westin Excelsior in Rome, Italy, the completion of the
renovation of the Westin Galleria and Oaks in Houston, Texas and the soon
to be completed roll out of the Sheraton Sweet Sleeper® bed to all
of the owned Sheratons. All managed and franchised Sheraton hotels expect
to have installed the Sheraton Sweet Sleeper by the end of 2003.
Financing
On December 31, 2002, the Company had total debt of $5.319 billion and
cash and cash equivalents of $216 million, or net debt of $5.103 billion,
compared to net debt of $5.402 billion at the end of 2001, a reduction
of approximately $300 million. Further, the year end debt balance was unfavorably
impacted by approximately $135 million due to foreign currency translation
versus year end 2001.
In October 2002, the Company refinanced its senior credit facility,
which consisted of a $1.1 billion revolving credit facility and a $174
million term loan, which was scheduled to mature in February 2003. The
new credit facility is a four-year facility (with a one-year extension
option) comprised of a $1.0 billion revolving credit facility and a $300
million term loan, each bearing an initial interest rate of LIBOR +1.625%.
The Company recorded approximately $1 million in early debt extinguishment
costs in the fourth quarter of 2002 related to this refinancing.
At the end of the fourth quarter of 2002, the Company's debt was approximately
56% fixed rate and 44% floating rate and its weighted average maturity
was 6.2 years. As of December 31, 2002, the Company had cash and availability
under its domestic and international revolving credit facilities of approximately
$883 million and the Company's debt had a weighted average interest rate
of 5.64%.
At December 31, 2002, Starwood had approximately 203 million shares
outstanding (including partnership units and exchangeable preferred shares).
Dividend
The Company declared its annual dividend for 2002 of $0.84 per share,
which was paid on January 21, 2003 to shareholders of record on December
31, 2002.
Special Items
The Company recorded a net benefit of $41 million (after-tax) for special
items in the fourth quarter of 2002 when compared to net charges of $52
million (after-tax) in the same period of 2001.
The net benefits in the fourth quarter of 2002 primarily represent $35
million related to various adjustments to federal and state tax liabilities
primarily due to the successful settlement of tax matters dating back to
1993; $11 million (pre-tax) reversal of accrued interest associated with
the tax liabilities which have now been settled; and $3 million of additional
construction remediation charges at an unconsolidated joint venture.
The following represents a reconciliation of income (loss) from continuing
operations before special items to income (loss) from continuing operations
after special items (in millions, except per share data):
Three
Months Ended
Year Ended
December 31,
December 31,
-------------
-------------
2002 2001
2002 2001
------ ------
------ ------
Income (loss) from continuing
$ 45 $ (2)
operations excluding special items $ 201 $ 205
------ -------
------- ------
$0.22 $(0.01) EPS excluding special
items $ 0.98 $ 1.00
------ -------
------- ------
Special Items:
Restructuring and other
2(a) (47)(b) special credits
(charges), net 7(a)(50)(b)
Gain (loss) on asset
1(c) (57)(d) dispositions
and impairments, net 3(c)(57)(d)
Foreign exchange gain
-- 24
from Argentina(e)
30 24
(1) --
Debt extinguishment costs(f)
(30) (9)
Costs associated with
(3) --
construction remediation (g)
(8) --
Reversal of interest on tax
11 --
deficiencies reserve (h)
11 --
------ -------
------- ------
10 (80)
Total special items - pretax
13 (92)
(4) 28
Income tax benefit (expense) (i)
(7) 32
Favorable settlement of federal
35 --
and state liabilities(j)
39 --
------ -------
------- ------
41 (52)
Total special items - after-tax
45 (60)
------ -------
------- ------
Income (loss) from
$ 86 $ (54) continuing
operations
$ 246 $ 145
------ -------
------- ------
$ 0.42 $(0.28) EPS including special
items $ 1.20 $ 0.70
------ -------
------- ------
(a) During 2002, the Company sold its investments
in certain
e-business ventures previously
deemed impaired and collected
receivables which were previously
deemed uncollectible.
Accordingly, the previously
recorded impairment reserves
associated with these assets
were reversed.
(b) During the first quarter of 2001, the Company
wrote-down its
investments in various e-business
ventures by approximately
$19 million based on the
market conditions for the technology
sector at the time and that
management's assessment of the
impairment of these investments
was other-than-temporary; this
charge was offset by the
reversal of a $20 million bad debt
restructuring charge taken
in 1998 relating to a note
receivable which is now
fully performing. During the third and
fourth quarters of 2001,
the Company recorded $51 million of
charges primarily related
to impairments of investments and
other assets, bad debt expense
and severance and other
retention costs as a result
of the Company's immediate cost
containment and asset impairment
analysis efforts after the
September 11 attacks.
(c) Primarily represents a gain on sale recorded
in the fourth
quarter of 2002 in connection
with Starwood's share of gains
from the sale of two hotels
in which the Company held minority
interests. On a full year
basis, this balance includes a $6
million gain on sale of
the Company's investment in Interval
International, offset, in
part, by an impairment charge
recorded in the first quarter
of 2002 to reduce the carrying
value of a hotel to its
fair market value, which was sold in
the second quarter of 2002.
(d) Balance is primarily comprised of asset impairments
recorded
in the fourth quarter of
2001.
(e) Amount is reflected in selling, general, administrative
and
other expenses and represents
foreign exchange losses and
gains resulting from the
initial devaluation of the Argentine
Peso and subsequent rate
volatility.
(f) Balance is reflected in interest expense due
to the Company's
early adoption of Statement
of Financial Accounting Standards
No. 145 and represents costs
related to the early
extinguishment of debt in
2001 and 2002 and the unwinding of
associated interest-rate
swaps for 2002.
(g) Amount is reflected as a reduction to other
hotel and leisure
revenues and represents
the Company's estimated share of costs
for construction remediation
efforts at a property owned by an
unconsolidated joint venture.
(h) Reversal relates to accrued interest on estimated
tax audit
liabilities dating back
to 1993 that were successfully settled
during 2002 (see (j) below).
(i) All special items are taxed at an incremental
federal and
state tax rate with the
exception of the construction
remediation charge, which
is not tax-effected because the
joint venture is in a tax-exempt
jurisdiction, and state tax
refunds, which are only
taxed at the federal rate of 35%.
(j) Reversals relate to various federal and state
tax audit
liabilities that were successfully
settled during 2002 and
state tax refunds received.
Future Performance
All comments in the following paragraphs and certain comments in this
release above are deemed to be forward-looking statements. These statements
reflect expectations of the Company's performance given its current base
of assets and its current understanding of external economic and political
environments. Actual results may differ materially.
The potential war with Iraq, weakness in North American and European
economies and the current political environment in South America and other
parts of the world and their consequent impact on travel in their respective
regions and on the rest of the world, make it difficult to predict future
results with any degree of precision.
The Company currently expects full year 2003 REVPAR in North America
to be approximately flat with 2002 levels, full year 2003 EBITDA to be
approximately flat to up $25 million due primarily to strong SVO growth
and improving European operations and currency offsetting cost increases
in North America and full year 2003 EPS, excluding special items, to be
approximately flat to up 10% benefiting from reduced depreciation expense
and an effective tax rate of approximately 15%, based on an expected dividend
in 2003 (payable in January 2004) of $0.84 per share.
REVPAR at Same-Store Owned Hotels worldwide for the first quarter of
2003 is now expected to be approximately flat when compared to the first
quarter of 2002. While these expectations do not anticipate an extended
war, planning for group meetings and other business travel are already
being impacted, to some extent, by the threat of war in the first quarter.
EPS in the first quarter of 2003 is currently expected to be below the
first quarter of 2002 at approximately $0.04 as the expected reduction
in depreciation expense does not begin until the end of February 2003 (five
years after the acquisition of ITT). The Company currently expects
total capital expenditures in 2003 to be approximately $400-$450 million.
Other than SVO construction, much of this capital has been scheduled for
the latter half of 2003. This total may increase or decrease depending
upon proceeds from asset sales and operating performance. Free cash
flow for 2003 for dividends and other Corporate uses (after cash interest
expense of approximately $350 million, cash taxes of approximately $100
million, and capital expenditures) is expected to exceed $200 million.
In addition to free cash flow, the Company expects net proceeds from
domestic and/or international asset sales of at least $500 million by the
end of 2003.
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(In millions, except per Share data)
Three Months Ended
December 31,
%
2002 2001 Variance
------- ------- --------
Revenues
Owned, leased and
consolidated joint venture hotels
$ 814 $ 746 9.1
Other hotel and leisure(a)
169 132 28.0
------- ------- --------
983 878 12.0
Other revenues from managed
and franchised properties(b)
191 166 15.1
------- ------- --------
1,174 1,044 12.5
------- ------- --------
Costs and Expenses
Owned, leased and
consolidated joint venture hotels
618 575 (7.5)
Selling, general, administrative and other(c)
108 88 (22.7)
Restructuring and other
special charges (credits), net
(2) 47 n/m
Depreciation
124 112 (10.7)
Amortization
4 23 82.6
------- ------- --------
852 845 (0.8)
Other expenses from
managed and franchised properties(b)
191 166 (15.1)
------- ------- --------
1,043 1,011 (3.2)
------- ------- --------
Operating income
131 33 297.0
Interest expense, net of interest income(d)
(67) (77) 13.0
Gain (loss) on asset
dispositions and impairments, net
1 (57) n/m
------- ------- --------
65 (101) n/m
Income tax benefit (expense)
23 47 (51.1)
Minority equity in net income
(2) -- --
------- ------- --------
Income from continuing operations
86 (54) n/m
Discontinued operations
5 -- --
------- ------- --------
Net income (loss)
$ 91 $ (54) n/m
======= ======= ========
Earnings Per Share -- Basic
Continuing operations
$ 0.42 (0.28) n/m
Discontinued operations
$ 0.03 --
--
------- ------- --------
Net income
$ 0.45 $ (0.28) n/m
======= ======= ========
Earnings Per Share -- Diluted
Continuing operations
$ 0.42 $ (0.28) n/m
Discontinued operations
0.03 -- --
------- ------- --------
Net income
$ 0.45 $ (0.28) n/m
======= ======= ========
Weighted average number of Shares
200 198
======= =======
Weighted average number
203 198
of Shares assuming dilution
======= =======
Reconciliation of
Operating Income to EBITDA(e)
Operating income
$ 131 $ 33 297.0
Depreciation(f)
130 119 9.2
Amortization(f)
4 23 (82.6)
Interest expense of
unconsolidated joint ventures
4 6 (33.3)
Interest income
1 2 (50.0)
Restructuring and other
special charges (credits), net
(2) 47 n/m
Foreign exchange loss (gain) from Argentina
-- (24) --
Construction remediation costs
3 -- --
------- ------- --------
EBITDA
$ 271 $ 206 31.6
======= ======= ========
Year Ended
December 31,
-------------------------
%
2002 2001 Variance
------- ------- --------
Revenues
Owned, leased and
consolidated joint venture hotels
$3,232 $3,343 (3.3)
Other hotel and leisure(a)
647 624 3.7
------- ------- --------
3,879 3,967 (2.2)
Other revenues from managed
and franchised properties(b)
780 740 5.4
------- ------- --------
4,659 4,707 (1.0)
------- ------- --------
Costs and Expenses
Owned, leased and
consolidated joint venture hotels
2,377 2,365 (0.5)
Selling, general, administrative and other(c)
426 411 (3.6)
Restructuring and other
special charges (credits), net
(7) 50 n/m
Depreciation
476 433 (9.9)
Amortization
20 93 78.5
------- ------- --------
3,292 3,352 1.8
Other expenses from managed and franchised properties(b)
780 740 (5.4)
------- ------- --------
4,072 4,092 0.5
------- ------- --------
Operating income
587 615 (4.6)
Interest expense, net of interest income(d)
(338) (367) 7.9
Gain (loss) on asset
dispositions and impairments, net
3 (57) n/m
------- ------- --------
252 191 31.9
Income tax benefit (expense)
(4) (43) 90.7
Minority equity in net income
(2) (3) 33.3
------- ------- --------
Income from continuing operations
246 145 69.7
Discontinued operations
109 -- --
------- ------- --------
Net income (loss)
$ 355 $145 144.8
======= ======= ========
Earnings Per Share -- Basic
Continuing operations
$ 1.22 $ 0.72 69.4
Discontinued operations
0.54 -- --
------- ------- --------
Net income
$ 1.76 $ 0.72 144.4
======= ======= ========
Earnings Per Share -- Diluted
Continuing operations
$ 1.20 $ 0.70 71.4
Discontinued operations
0.53 -- --
------- ------- --------
Net income
$ 1.73 $ 0.70 147.1
======= ======= ========
Weighted average number of Shares
201 201
======= =======
Weighted average number
of Shares assuming dilution
205 206
======= =======
Reconciliation of
Operating Income to EBITDA(e)
Operating income
$ 587 $ 615 (4.6)
Depreciation(f)
499 460 8.5
Amortization(f)
20 93 (78.5)
Interest expense of
unconsolidated joint ventures
16 25 (36.0)
Interest income
2 11 (81.8)
Restructuring and other
special charges (credits), net
(7) 50 n/m
Foreign exchange loss (gain) from Argentina
(30) (24) (25.0)
Construction remediation costs
8 -- --
------- ------- --------
EBITDA
$1,095 $1,230 (11.0)
======= ======= ========
(a) Other hotel and leisure revenues
include management and
franchise
fees earned from third party hotel owners, the
Company's
interest in unconsolidated joint ventures and the
sale and financing
of VOIs.
(b) In response to a Financial Accounting
Standards Board staff
announcement
and in accordance with Emerging Issues Task Force
Abstract 01-14,
the Company has included in revenues the
reimbursement
of costs incurred on behalf of managed hotel
property owners
and franchisees and included in costs and
expenses these
reimbursed costs. These costs relate primarily
to payroll
costs at managed properties where the Company is
the employer.
Since the reimbursements made are based upon
costs incurred
with no added margin, the adoption of this
guidance has
no effect on operating income, total or per Share
net income
(loss), cash flows or the financial position of the
Company.
(c) Selling, general, administrative
and other expenses includes
the cost of
sales of VOIs and other costs of vacation
ownership
operations.
(d) Interest expense includes early
debt extinguishment costs of
$1 million
and $0 million, respectively. in the quarters ended
December 31,
2002 and 2001 and $30 million and $9 million,
respectively,
in the years ended December 31, 2002 and 2001,
as a result
of the Company's early adoption of Statement of
Financial
Accounting Standards No. 145.
(e) EBITDA is defined as income before
interest expense, income
tax expense
and depreciation and amortization. Special items
and gains
and losses from asset dispositions are also excluded
from EBITDA
as these items do not impact operating results on
a recurring
basis. Management considers EBITDA to be one
measure of
the cash flows from operations of the Company
before debt
service that provides a relevant basis for
comparison,
and EBITDA is presented to assist investors in
analyzing
the performance of the Company. This information
should not
be considered as an alternative to any measure of
performance
as promulgated under accounting principles
generally
accepted in the United States, nor should it be
considered
as an indicator of the overall financial
performance
of the Company. The Company's calculation of
EBITDA may
be different from the calculation used by other
companies
and, therefore, comparability may be limited.
(f) Includes Starwood's share of depreciation
and amortization
expense of
unconsolidated joint ventures.
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
UNAUDITED BALANCE SHEET INFORMATION
(In millions)
Dec. 31,
2002
Total assets
$ 12,259
Cash and cash equivalents
(including restricted cash of $108)
$ 216
Total debt(a)
$ 5,319
Shares outstanding(b)
203
(a) Excludes Starwood's share of unconsolidated
joint venture debt
aggregating
approximately $355 million.
(b) Shares outstanding include partnership
units and exchangeable
preferred
shares.
STARWOOD HOTELS & RESORTS WORLDWIDE,
INC.
Hotel Results - Same Store (1)
For the Three Months Ended December 31, 2002
UNAUDITED
WORLDWIDE
2002 2001 Var.
------- ------- -----
160 Hotels
OWNED HOTELS
REVPAR ($)
91.92 84.01 9.4%
ADR ($)
148.83 143.03 4.1%
OCCUPANCY
(%)
61.8% 58.7% 3.1
69
SHERATON
REVPAR ($)
76.19 73.21 4.1%
ADR ($)
127.72 126.70 0.8%
OCCUPANCY
(%)
59.7% 57.8% 1.9
38
WESTIN
REVPAR ($)
99.25 85.78 15.7%
ADR ($)
150.55 141.77 6.2%
OCCUPANCY
(%)
65.9% 60.5% 5.4
16
LUXURY COLLECTION
REVPAR ($)
194.85 174.73 11.5%
ADR ($)
341.49 302.15 13.0%
OCCUPANCY
(%)
57.1% 57.8% -0.7
10
W
REVPAR ($)
139.22 121.86 14.2%
ADR ($)
207.87 189.76 9.5%
OCCUPANCY
(%)
67.0% 64.2% 2.8
27
OTHER
REVPAR ($)
67.91 61.40 10.6%
ADR ($)
111.48 108.64 2.6%
OCCUPANCY
(%)
60.9% 56.5% 4.4
NORTH AMERICA
2002 2001 Var.
------- ----- -----
110 Hotels
OWNED HOTELS
REVPAR ($)
91.68 85.11 7.7%
ADR ($)
146.14 142.29 2.7%
OCCUPANCY
(%)
62.7% 59.8% 2.9
45
SHERATON
REVPAR ($)
80.58 76.19 5.8%
ADR ($)
131.36 128.84 2.0%
OCCUPANCY
(%)
61.3% 59.1% 2.2
24
WESTIN
REVPAR ($)
90.48 82.34 9.9%
ADR ($)
135.36 132.66 2.0%
OCCUPANCY
(%)
66.8% 62.1% 4.7
5
LUXURY COLLECTION
REVPAR ($)
221.37 213.26 3.8%
ADR ($)
385.81 360.97 6.9%
OCCUPANCY
(%)
57.4% 59.1% -1.7
10
W
REVPAR ($)
139.22 121.86 14.2%
ADR ($)
207.87 189.76 9.5%
OCCUPANCY
(%)
67.0% 64.2% 2.8
26
OTHER
REVPAR ($)
68.15 62.83 8.5%
ADR ($)
116.60 113.20 3.0%
OCCUPANCY
(%)
58.5% 55.5% 3.0
INTERNATIONAL(2)
2002 2001 Var.
------ ------ -----
50 Hotels
OWNED HOTELS
REVPAR ($)
92.63 80.63 14.9%
ADR ($)
157.62 145.50 8.3%
OCCUPANCY
(%)
58.8% 55.4% 3.4
24
SHERATON
REVPAR ($)
66.03 66.30 -0.4%
ADR ($)
118.44 121.35 -2.4%
OCCUPANCY
(%)
55.7% 54.6% 1.1
14
WESTIN
REVPAR ($)
131.25 98.60 33.1%
ADR ($)
209.70 180.29 16.3%
OCCUPANCY
(%)
62.6% 54.7% 7.9
11
LUXURY COLLECTION
REVPAR ($)
167.67 133.99 25.1%
ADR ($)
295.55 237.11 24.6%
OCCUPANCY
(%)
56.7% 56.5% 0.2
0
W
REVPAR ($)
0.00 0.00 0.0%
ADR ($)
0.00 0.00 0.0%
OCCUPANCY
(%)
0.0% 0.0% n/a
1
OTHER
REVPAR ($)
65.64 48.11 36.4%
ADR ($)
78.50 72.80 7.8%
OCCUPANCY
(%)
83.6% 66.1% 17.5
(1) Hotel Results exclude 3 hotels
without comparable results and
3 hotels sold
during 2001 and 2002.
(2) See next page for breakdown by
division.
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Hotel Results - Same Store (1)
For the Three Months Ended December 31, 2002
UNAUDITED
EUROPE
2002 2001 Var.
------ ------ -----
34 Hotels
OWNED HOTELS
REVPAR ($)
125.94 103.04 22.2%
ADR ($)
207.90 180.81 15.0%
OCCUPANCY
(%)
60.6% 57.0% 3.6
12
SHERATON
REVPAR ($)
88.90 81.70 8.8%
ADR ($)
145.74 139.07 4.8%
OCCUPANCY
(%)
61.0% 58.7% 2.3
11
WESTIN
REVPAR ($)
149.65 111.69 34.0%
ADR ($)
238.97 203.77 17.3%
OCCUPANCY
(%)
62.6% 54.8% 7.8
11
LUXURY COLLECTION
REVPAR ($)
167.67 133.99 25.1%
ADR ($)
295.55 237.11 24.6%
OCCUPANCY
(%)
56.7% 56.5% 0.2
0
OTHER
REVPAR ($)
0.00 0.00 0.0%
ADR ($)
0.00 0.00 0.0%
OCCUPANCY
(%)
0.0% 0.0% n/a
LATIN AMERICA
2002 2001 Var.
------ ------ -----
13 Hotels
OWNED HOTELS
REVPAR ($)
51.88 56.12 -7.6%
ADR ($)
100.75 110.16 -8.5%
OCCUPANCY
(%)
51.5% 50.9% 0.6
10
SHERATON
REVPAR ($)
45.87 54.72 -16.2%
ADR ($)
93.06 108.86 -14.5%
OCCUPANCY
(%)
49.3% 50.3% -1.0
3
WESTIN
REVPAR ($)
81.77 63.19 29.4%
ADR ($)
130.84 116.25 12.6%
OCCUPANCY
(%)
62.5% 54.4% 8.1
0
LUXURY COLLECTION
REVPAR ($)
0.00 0.00 0.0%
ADR ($)
0.00 0.00 0.0%
OCCUPANCY
(%)
0.0% 0.0% n/a
0
OTHER
REVPAR ($)
0.00 0.00 0.0%
ADR ($)
0.00 0.00 0.0%
OCCUPANCY
(%)
0.0% 0.0% n/a
ASIA PACIFIC
2002 2001 Var.
------ ------ ------
3 Hotels
OWNED HOTELS
REVPAR ($)
73.32 57.87 26.7%
ADR ($)
98.21 91.82 7.0%
OCCUPANCY
(%)
74.7% 63.0% 11.7
2
SHERATON
REVPAR ($)
79.22 65.38 21.2%
ADR ($)
116.87 107.76 8.5%
OCCUPANCY
(%)
67.8% 60.7% 7.1
0
WESTIN
REVPAR ($)
0.00 0.00 0.0%
ADR ($)
0.00 0.00 0.0%
OCCUPANCY
(%)
0.0% 0.0% n/a
0
LUXURY COLLECTION
REVPAR ($)
0.00 0.00 0.0%
ADR ($)
0.00 0.00 0.0%
OCCUPANCY
(%)
0.0% 0.0% n/a
1
OTHER
REVPAR ($)
65.64 48.11 36.4%
ADR ($)
78.50 72.80 7.8%
OCCUPANCY
(%)
83.6% 66.1% 17.5
(1) Hotel Results exclude 3 hotels
without comparable results and
3 hotels sold
during 2001 and 2002.
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Hotel Results - Same Store (1)
For the Three Months Ended December 31, 2002
UNAUDITED ($thousands)
WORLDWIDE
2002 2001 Var.
------ ------ -----
160 Hotels
OWNED HOTELS
Total REVENUE 785,592 732,482
7.3%
Total EBITDA 190,793
176,017 8.4%
MARGIN %
24.3% 24.0% 0.3
69
SHERATON
REVENUE
318,603 307,693 3.5%
EBITDA
78,679 80,486 -2.2%
MARGIN %
24.7% 26.2% -1.5
38
WESTIN
REVENUE
229,516 202,607 13.3%
EBITDA
55,403 46,656 18.7%
MARGIN %
24.1% 23.0% 1.1
16
LUXURY COLLECTION
REVENUE
107,512 101,030 6.4%
EBITDA
28,177 23,404 20.4%
MARGIN %
26.2% 23.2% 3.0
10
W
REVENUE
63,372 57,997 9.3%
EBITDA
13,502 12,720 6.1%
MARGIN %
21.3% 21.9% -0.6
27
OTHER
REVENUE
66,589 63,155 5.4%
EBITDA
15,032 12,751 17.9%
MARGIN %
22.6% 20.2% 2.4
NORTH AMERICA
2002 2001 Var.
------- ------- -----
110 Hotels
OWNED HOTELS
Total REVENUE 587,837 556,475
5.6%
Total EBITDA 144,034
138,184 4.2%
MARGIN %
24.5% 24.8% -0.3
45
SHERATON
REVENUE
230,733 218,170 5.8%
EBITDA
57,450 59,610 -3.6%
MARGIN %
24.9% 27.3% -2.4
24
WESTIN
REVENUE
163,999 152,431 7.6%
EBITDA
40,091 36,196 10.8%
MARGIN %
24.4% 23.7% 0.7
5
LUXURY COLLECTION
REVENUE
68,848 68,879 0.0%
EBITDA
18,191 17,053 6.7%
MARGIN %
26.4% 24.8% 1.6
10
W
REVENUE
63,372 57,997 9.3%
EBITDA
13,502 12,720 6.1%
MARGIN %
21.3% 21.9% -0.6
26
OTHER
REVENUE
60,885 58,998 3.2%
EBITDA
14,800 12,605 17.4%
MARGIN %
24.3% 21.4% 2.9
INTERNATIONAL(2)
2002 2001 Var.
------- ------- -----
50 Hotels
OWNED HOTELS
Total REVENUE 197,755 176,007
12.4%
Total EBITDA
46,759 37,833 23.6%
MARGIN %
23.6% 21.5% 2.1
24
SHERATON
REVENUE
87,870 89,523 -1.8%
EBITDA
21,229 20,876 1.7%
MARGIN %
24.2% 23.3% 0.9
14
WESTIN
REVENUE
65,517 50,176 30.6%
EBITDA
15,312 10,460 46.4%
MARGIN %
23.4% 20.8% 2.6
11
LUXURY COLLECTION
REVENUE
38,664 32,151 20.3%
EBITDA
9,986 6,351 57.2%
MARGIN %
25.8% 19.8% 6.0
0
W
REVENUE
0 0 0.0%
EBITDA
0 0 0.0%
MARGIN %
n/a n/a n/a
1
OTHER
REVENUE
5,704 4,157 37.2%
EBITDA
232 146 58.9%
MARGIN %
4.1% 3.5% 0.6
(1) Hotel Results exclude 3 hotels
without comparable results and
3 hotels sold
during 2001 and 2002. See next page for
(2) breakdown by division.
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Hotel Results - Same Store (1)
For the Three Months Ended December 31, 2002
UNAUDITED ($thousands)
EUROPE
2002 2001 Var.
------- ------- -----
34 Hotels
OWNED
HOTELS
Total REVENUE
137,444 114,469 20.1%
Total EBITDA
33,428 22,322 49.8%
MARGIN
%
24.3% 19.5% 4.8
12
SHERATON
REVENUE
45,433 41,766 8.8%
EBITDA
9,731 8,420 15.6%
MARGIN
%
21.4% 20.2% 1.2
11
WESTIN
REVENUE
53,347 40,552 31.6%
EBITDA
13,711 7,551 81.6%
MARGIN
%
25.7% 18.6% 7.1
11
LUXURY COLLECTION
REVENUE
38,664 32,151 20.3%
EBITDA
9,986 6,351 57.2%
MARGIN
%
25.8% 19.8% 6.0
0
OTHER
REVENUE
0 0 0.0%
EBITDA
0 0 0.0%
MARGIN
%
n/a n/a n/a
LATIN AMERICA
2002 2001 Var.
------- ------- -----
13 Hotels
OWNED
HOTELS
Total REVENUE 42,823
47,732 -10.3%
Total EBITDA
9,957 13,110 -24.1%
MARGIN %
23.3% 27.5% -4.2
10
SHERATON
REVENUE
30,653 38,108 -19.6%
EBITDA
8,356 10,201 -18.1%
MARGIN %
27.3% 26.8% 0.5
3
WESTIN
REVENUE
12,170 9,624 26.5%
EBITDA
1,601 2,909 -45.0%
MARGIN %
13.2% 30.2% -17.0
0
LUXURY COLLECTION
REVENUE
0 0 n/a
EBITDA
0 0 n/a
MARGIN %
n/a n/a n/a
0
OTHER
REVENUE
0 0 0.0%
EBITDA
0 0 0.0%
MARGIN %
n/a n/a n/a
ASIA PACIFIC
2002 2001 Var.
------- ------- -----
3 Hotels
OWNED
HOTELS
Total REVENUE
17,488 13,806 26.7%
Total EBITDA
3,374 2,401 40.5%
MARGIN
%
19.3% 17.4% 1.9
2
SHERATON
REVENUE
11,784 9,649 22.1%
EBITDA
3,142 2,255 39.3%
MARGIN
%
26.7% 23.4% 3.3
0
WESTIN
REVENUE
0 0 0.0%
EBITDA
0 0 0.0%
MARGIN
%
n/a n/a n/a
0
LUXURY COLLECTION
REVENUE
0 0 n/a
EBITDA
0 0 n/a
MARGIN
%
n/a n/a n/a
1
OTHER
REVENUE
5,704 4,157 37.2%
EBITDA
232 146 58.9%
MARGIN
%
4.1% 3.5% 0.6
(1) Hotel Results exclude 3 hotels
without comparable results and
3 hotels sold
during 2001 and 2002.
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Hotel Results - Same Store (1)
For the Year Ended December 31, 2002
UNAUDITED
WORLDWIDE
NORTH AMERICA
---------------- ----------------
2002 2001 Var. 2002
2001 Var.
-------- ------- ------ -------- ------- -----
155 Hotels
109 Hotels
----------------------- ----------------------
OWNED HOTELS
REVPAR ($)
95.46 101.44 -5.9% 94.40 100.42
-6.0%
ADR ($)
150.42 155.77 -3.4% 145.61 152.39 -4.4%
OCCUPANCY (%) 63.5%
65.1% -1.6 64.8% 65.9% -1.1
68
44
----------------------- ----------------------
SHERATON
REVPAR ($)
77.74 86.44 -10.1% 82.00 90.09
-9.0%
ADR ($)
128.12 135.93 -5.7% 130.47 138.35 -5.7%
OCCUPANCY (%) 60.7%
63.6% -2.9 62.8% 65.1% -2.3
36
24
----------------------- ----------------------
WESTIN
REVPAR ($)
105.03 108.47 -3.2% 96.74 100.91
-4.1%
ADR ($)
153.23 156.61 -2.2% 139.37 144.50 -3.6%
OCCUPANCY (%) 68.5%
69.3% -0.8 69.4% 69.8% -0.4
14
5
----------------------- ----------------------
LUXURY COLLECTION
REVPAR ($)
211.70 223.00 -5.1% 211.91 234.00 -9.4%
ADR ($)
358.03 339.89 5.3% 357.78 358.18
-0.1%
OCCUPANCY (%) 59.1%
65.6% -6.5 59.2% 65.3% -6.1
10
10
----------------------- ----------------------
W
REVPAR ($)
132.26 135.34 -2.3% 132.26 135.34 -2.3%
ADR ($)
199.85 204.65 -2.3% 199.85 204.65 -2.3%
OCCUPANCY (%) 66.2%
66.1% 0.1 66.2% 66.1%
0.1
27
26
----------------------- ----------------------
OTHER
REVPAR ($)
71.40 71.34 0.1% 72.95
73.63 -0.9%
ADR ($)
111.36 115.81 -3.8% 116.13 120.95 -4.0%
OCCUPANCY (%) 64.1%
61.6% 2.5 62.8% 60.9%
1.9
INTERNATIONAL(2)
2002 2001 Var.
-------- ------- ------
46 Hotels
OWNED HOTELS
REVPAR ($)
98.65 104.55 -5.6%
ADR ($)
166.35 166.55 -0.1%
OCCUPANCY (%) 59.3%
62.8% -3.5
24
SHERATON
REVPAR ($)
68.65 78.65 -12.7%
ADR ($)
122.47 130.36 -6.1%
OCCUPANCY (%) 56.1%
60.3% -4.2
12
WESTIN
REVPAR ($)
138.17 138.61 -0.3%
ADR ($)
212.34 207.01 2.6%
OCCUPANCY (%) 65.1%
67.0% -1.9
9
LUXURY COLLECTION
REVPAR ($)
211.45 210.34 0.5%
ADR ($)
358.33 319.02 12.3%
OCCUPANCY (%) 59.0%
65.9% -6.9
0
W
REVPAR ($)
0.00 0.00 0.0%
ADR ($)
0.00 0.00 0.0%
OCCUPANCY (%)
0.0% 0.0% n/a
1
OTHER
REVPAR ($)
57.09 49.99 14.2%
ADR ($)
75.10 73.01 2.9%
OCCUPANCY (%) 76.0%
68.5% 7.5
(1) Hotel Results exclude 8 hotels without comparable
results and 5
hotels sold during 2001 and 2002.
(2) See next page for breakdown by division.
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Hotel Results - Same Store (1)
For the Year Ended December 31, 2002
UNAUDITED
EUROPE
LATIN AMERICA
--------
---------------
2002 2001 Var. 2002
2001 Var.
-------- ------- ----- -------- ------- ------
30 Hotels
13 Hotels
---------------------- -----------------------
OWNED HOTELS
REVPAR ($)
138.37 138.72 -0.3% 55.46 71.71
-22.7%
ADR ($)
221.47 210.11 5.4% 106.31 125.28 -15.1%
OCCUPANCY (%) 62.5%
66.0% -3.5 52.2% 57.2% -5.0
12
10
---------------------- -----------------------
SHERATON
REVPAR ($)
92.59 95.95 -3.5% 49.35 66.86
-26.2%
ADR ($)
146.89 144.90 1.4% 100.42 122.13 -17.8%
OCCUPANCY (%) 63.0%
66.2% -3.2 49.1% 54.7% -5.6
9
3
---------------------- -----------------------
WESTIN
REVPAR ($)
159.62 156.16 2.2% 86.30 96.19
-10.3%
ADR ($)
249.09 237.42 4.9% 127.95 137.75
-7.1%
OCCUPANCY (%) 64.1%
65.8% -1.7 67.4% 69.8% -2.4
9
0
LUXURY COLLECTION
REVPAR ($)
211.45 210.34 0.5% 0.00
0.00 0.0%
ADR ($)
358.33 319.02 12.3% 0.00
0.00 0.0%
OCCUPANCY (%) 59.0%
65.9% -6.9 0.0% 0.0%
n/a
0
0
OTHER
REVPAR ($)
0.00 0.00 0.0% 0.00
0.00 0.0%
ADR ($)
0.00 0.00 0.0% 0.00
0.00 0.0%
OCCUPANCY (%)
0.0% 0.0% n/a 0.0%
0.0% n/a
ASIA PACIFIC
2002 2001 Var.
-------- ------- -----
3 Hotels
OWNED HOTELS
REVPAR ($)
65.82 61.65 6.8%
ADR ($)
95.42 92.38 3.3%
OCCUPANCY (%)
69.0% 66.7% 2.3
2
SHERATON
REVPAR ($)
72.53 70.61 2.7%
ADR ($)
114.08 107.96 5.7%
OCCUPANCY (%)
63.6% 65.4% -1.8
0
WESTIN
REVPAR ($)
0.00 0.00 0.0%
ADR ($)
0.00 0.00 0.0%
OCCUPANCY (%)
0.0% 0.0% n/a
0
LUXURY COLLECTION
REVPAR ($)
0.00 0.00 0.0%
ADR ($)
0.00 0.00 0.0%
OCCUPANCY (%)
0.0% 0.0% n/a
1
OTHER
REVPAR ($)
57.09 49.99 14.2%
ADR ($)
75.10 73.01 2.9%
OCCUPANCY (%)
76.0% 68.5% 7.5
(1) Hotel Results exclude 8 hotels without comparable
results and 5
hotels sold during 2001 and 2002.
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Hotel Results - Same Store (1)
For the Year Ended December 31, 2002
UNAUDITED ($thousands)
WORLDWIDE
NORTH AMERICA
-------------------- --------------------
2002 2001 Var.
2002 2001 Var.
-------------------------
--------------------------
155 Hotels
109 Hotels
-------------------------
--------------------------
OWNED HOTELS
Total
REVENUE 3,012,932 3,206,464 -6.0% 2,235,217 2,381,938
-6.2%
Total
EBITDA 818,643 957,489
-14.5% 585,413 696,433 -15.9%
MARGIN % 27.2%
29.9% -2.7 26.2%
29.2% -3.0
68
44
-------------------------
--------------------------
SHERATON
REVENUE 1,178,878 1,295,642 -9.0% 825,732
893,450 -7.6%
EBITDA 318,749 390,464
-18.4% 219,648 270,055 -18.7%
MARGIN % 27.0%
30.1% -3.1 26.6%
30.2% -3.6
36
24
-------------------------
--------------------------
WESTIN
REVENUE 896,456 929,282
-3.5% 658,656 690,624 -4.6%
EBITDA 251,820 279,416
-9.9% 178,271 198,901 -10.4%
MARGIN % 28.1%
30.1% -2.0 27.1%
28.8% -1.7
14
5
-------------------------
--------------------------
LUXURY COLLECTION
REVENUE 431,851 460,914
-6.3% 264,406 294,018 -10.1%
EBITDA 126,758 147,094
-13.8% 65,698 86,715 -24.2%
MARGIN % 29.4%
31.9% -2.5 24.8%
29.5% -4.7
10
10
-------------------------
--------------------------
W
REVENUE 236,448 246,393
-4.0% 236,448 246,393 -4.0%
EBITDA 55,267
68,225 -19.0% 55,267 68,225 -19.0%
MARGIN % 23.4%
27.7% -4.3 23.4%
27.7% -4.3
27
26
-------------------------
--------------------------
OTHER
REVENUE 269,299 274,233
-1.8% 249,975 257,453 -2.9%
EBITDA 66,049
72,290 -8.6% 66,529 72,537 -8.3%
MARGIN % 24.5%
26.4% -1.9 26.6%
28.2% -1.6
INTERNATIONAL (2)
2002 2001 Var.
46 Hotels
OWNED HOTELS
Total
REVENUE 777,715 824,526 -5.7%
Total
EBITDA 233,230 261,056 -10.7%
MARGIN % 30.0% 31.7%
-1.7
24
SHERATON
REVENUE 353,146 402,192 -12.2%
EBITDA 99,101 120,409 -17.7%
MARGIN % 28.1% 29.9%
-1.8
12
WESTIN
REVENUE 237,800 238,658 -0.4%
EBITDA 73,549 80,515
-8.7%
MARGIN % 30.9% 33.7%
-2.8
9
LUXURY COLLECTION
REVENUE 167,445 166,896 0.3%
EBITDA 61,060 60,379
1.1%
MARGIN % 36.5% 36.2%
0.3
0
W
REVENUE 0
0 0.0%
EBITDA
0 0 0.0%
MARGIN % n/a
n/a n/a
1
OTHER
REVENUE 19,324 16,780 15.2%
EBITDA (480)
(247) -94.3%
MARGIN % -2.5% -1.5%
-1.0
(1) Hotel results exclude 8 hotels without comparable
results and 5
hotels sold during 2001 and 2002.
(2) See next page for breakdown by division.
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Hotel Results - Same Store (1)
For the Year Ended December 31, 2002
UNAUDITED ($thousands)
EUROPE
LATIN AMERICA
--------
-----------------
2002 2001 Var. 2002
2001 Var.
-------- -------- ----- -------- -------- ------
30 Hotels
13 Hotels
----------------------- ------------------------
OWNED HOTELS
Total REVENUE 539,997 541,594
-0.3% 176,109 226,528 -22.3%
Total EBITDA 163,706 166,748
-1.8% 58,893 84,508 -30.3%
MARGIN %
30.3% 30.8% -0.5 33.4%
37.3% -3.9
12
10
----------------------- ------------------------
SHERATON
REVENUE
184,998 190,848 -3.1% 125,863 171,720 -26.7%
EBITDA
45,136 48,549 -7.0% 42,854 61,813
-30.7%
MARGIN %
24.4% 25.4% -1.0 34.0%
36.0% -2.0
9
3
----------------------- ------------------------
WESTIN
REVENUE
187,554 183,850 2.0% 50,246 54,808
-8.3%
EBITDA
57,510 57,820 -0.5% 16,039 22,695
-29.3%
MARGIN %
30.7% 31.4% -0.7 31.9%
41.4% -9.5
9
0
LUXURY COLLECTION
REVENUE
167,445 166,896 0.3%
0 0 n/a
EBITDA
61,060 60,379 1.1%
0 0 n/a
MARGIN %
36.5% 36.2% 0.3
n/a n/a n/a
0
0
OTHER
REVENUE
0 0 0.0%
0 0 0.0%
EBITDA
0 0 0.0%
0 0 0.0%
MARGIN %
n/a n/a n/a
n/a n/a n/a
ASIA PACIFIC
----------------
2002 2001 Var.
-------- ------- ------
3 Hotels
OWNED HOTELS
Total REVENUE 61,609 56,404
9.2%
Total EBITDA 10,631
9,800 8.5%
MARGIN %
17.3% 17.4% -0.1
2
SHERATON
REVENUE
42,285 39,624 6.7%
EBITDA
11,111 10,047 10.6%
MARGIN %
26.3% 25.4% 0.9
0
WESTIN
REVENUE
0 0 0.0%
EBITDA
0 0 0.0%
MARGIN %
n/a n/a n/a
0
LUXURY COLLECTION
REVENUE
0 0 n/a
EBITDA
0 0 n/a
MARGIN %
n/a n/a n/a
1
OTHER
REVENUE
19,324 16,780 15.2%
EBITDA
(480) (247) -94.3%
MARGIN %
-2.5% -1.5% -1.0
(1) Hotel results exclude 8 hotels without comparable
results and 5
hotels sold during 2001 and 2002.
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Debt Portfolio Summary
As of December 31, 2002
UNAUDITED (in millions)
Balance
Interest (in
% of Interest Avg Maturity
Debt
Terms millions) Portfolio
Rate (in years)
---------- --------------- --------- ---------
-------- ------------
Floating
Rate
Debt:
Senior
credit
facility
$1 billion
revolving
credit
facility VARIOUS + 162.5
$ 325 6%
4.10% 3.8
Term loan LIBOR + 162.5
300 6% 3.01%
3.0
--------------- --------- --------- -------- ------------
625 12% 3.57%
3.4
450M Euro
facility EURIBOR + 195
473 9% 4.81%
1.0
Mortgages
and other Various
255 4% 5.53%
2.6
Interest
rate swaps Various
1,002 19% 5.29%
--------------- --------- --------- --------
Total
Floating
2,355 44% 4.76%
2.4
Fixed Rate Debt:
Sheraton Holding
public debt
1,324 25% 6.52%
8.2 (1)
Senior notes
1,542 29% 7.13%
7.0 (2)
Convertible debt
316 6% 3.25%
1.4 (3)
Mortgages and other
784 15% 7.37%
9.4
Interest rate swaps
(1,002) -19% 7.19%
--------- --------- --------
Total Fixed
2,964 56% 6.34%
7.4
--------- --------- --------
Total Debt
$ 5,319 100% 5.64%
6.2
========= ========= ========
-----------------------------
Maturities
-----------------------------
(less than)1 year $
870
2-3 years 1,025
4-5 years 1,332
(greater than)5 years
2,092
$ 5,319
=========
(1) Balance consists of outstanding public debt of $1.297
billion and
a $21 million fair value adjustment related to the unamortized
gain on
fixed to floating interest rate swaps terminated in September
2002 and
a $6 million fair value adjustment related to current
fixed to
floating interest rate swaps.
(2) Balance consists of outstanding public debt of $1.494
billion and
a $39 million fair value adjustment related to the unamortized
gain on
fixed to floating interest rate swaps terminated in September
2002 and
a $9 million fair value adjustment related to current
fixed to
floating interest rate swaps.
(3) Maturity date reflects the first put date of the convertible
debt.
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Hotels under Renovation and/or without Comparable
Results & Other Selected Items
For Three Months Ended December 31, 2002
UNAUDITED
Properties without Comparable Results during the 4th
Quarter 2002
Property
Location
--------
--------
W Chicago - Lake Shore
Chicago, IL
W New York - Times Square
New York, NY
Sheraton Royal Denarau Resort
Nadi, Fiji
Selected Balance Sheet and Cash Flow Items:
Cash and cash equivalents
(including restricted cash of $108 million)
$ 216
Capital expenditures
$ 142
Debt level
$ 5,319
2002 Dividend declared per share
$ 0.84
Shares Repurchased
-
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Summary of Portfolio by Properties & Rooms
As of December 31, 2002
UNAUDITED
PROPERTIES
Sheraton Westin Lux. Col./ Four W Other
Total
St. Regis Points
-------- ------ ---------- ------ ----- ----- -------
Owned,
leased &
consolidated
JVs
68 38
18 7 12
20 163
Unconsolidated
joint
ventures
27 10
2 2 -
1 42
-------- ------ ---------- ------ ----- ----- -------
Equity
interest
properties
95 48
20 9 12
21 205
Managed
(third-party
owned)
143 42
18 22 5
5 235
Franchised,
represented &
referral
158 25
12 113 -
- 308
-------- ------ ---------- ------ ----- ----- -------
Total
396 115 50
144 17 26
748
======== ====== ========== ====== ===== ===== =======
ROOMS
Sheraton Westin Lux. Col./ Four W Other
Total
St. Regis Points
-------- ------ ---------- ------ ----- ----- -------
Owned,
leased &
consolidated
JVs
26,991 14,490 3,731 1,782 4,391 4,782
56,167
Unconsolidated
joint
ventures
10,355 4,498 441
328 - 132 15,754
-------- ------ ---------- ------ ----- ----- -------
Equity
interest
properties 37,346
18,988 4,172 2,110 4,391 4,914
71,921
Managed
(third-party
owned)
48,638 20,350 3,053 4,101
856 945 77,943
Franchised,
represented &
referral
47,535 8,138 1,473 19,960
- - 77,106
-------- ------ ---------- ------ ----- ----- -------
Total
133,519 47,476 8,698 26,171 5,247 5,859
226,970
======== ====== ========== ====== ===== ===== =======
All references to EPS, unless otherwise noted, reflect earnings (losses)
per diluted share from continuing operations. All references to Total Revenues
exclude other revenues from managed and franchised properties. All references
to total Company EBITDA and EBITDA margins exclude other revenues and expenses
from managed and franchised properties. All references to Same-Store Owned
Hotels reflect the Company's owned, leased and consolidated joint venture
hotels, excluding hotels under significant renovation or for which comparable
results are not available. REVPAR is defined as revenue per available room.
ADR is defined as average daily rate.
Starwood Hotels & Resorts Worldwide, Inc. is one of the leading
hotel and leisure companies in the world with more than 750 properties
in more than 80 countries and 110,000 employees at its owned and managed
properties.
This press release contains forward-looking statements within the meaning
of federal securities regulations.
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