STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
(In millions, except per Share data)
Three Months Ended
June 30,
%
2002 2001 Variance
Revenues
----- ------- ----------
Owned, leased and consolidated
joint venture hotels
$ 860 $ 930
(7.5)
Other hotel and leisure(a)
172 180
(4.4)
-------- ------- -------
1,032 1,110 (7.0)
Other revenues from managed
and franchised properties(b)
200 197
1.5
-------- ------- -------
1,232 1,307 (5.7)
-------- ------- -------
Costs and Expenses
Owned, leased and consolidated
joint venture hotels
606 618
1.9
Selling, general,
administrative and other(c)
107 108
0.9
Restructuring and other
special credits, net
(1) --
--
Depreciation
116 107
(8.4)
Amortization
5 23
78.3
-------- ------- -------
833 856
2.7
Other expenses from managed
and franchised properties(b)
200 197
(1.5)
-------- ------- -------
1,033 1,053
1.9
-------- ------- -------
Operating income
199 254 (21.7)
Interest expense, net of
interest income(d)
(110) (101) (8.9)
Gain (loss) on asset
dispositions, net
(1) 1 (200.0)
-------- ------- -------
88 154 (42.9)
Income tax expense
(11) (45) 75.6
Minority equity in
net income
(1) (2) 50.0
-------- ------- -------
Income from
continuing operations
76 107 (29.0)
Discontinued operations
104 --
--
-------- ------- -------
Net income
$ 180 $ 107
68.2
========== ======= ========
Earnings Per
Share -- Basic
Continuing operations
$ 0.38 $ 0.53 (28.3)
Discontinued operations
0.51 --
--
-------- ------- -------
Net income
$ 0.89 $ 0.53 67.9
======== ======= =======
Earnings Per
Share -- Diluted
Continuing operations
$ 0.37 $ 0.52 (28.8)
Discontinued operations
0.50 --
--
-------- ------- -------
Net income
$ 0.87 $ 0.52 67.3
======== ======= =======
Weighted average
number of Shares
201 201
======== =======
Weighted average number
of Shares assuming dilution
206 207
======== =======
Reconciliation of Operating
Income to EBITDA(e)
Operating income
$ 199 $ 254 (21.7)
Depreciation(f)
121 113
7.1
Amortization(f)
5 23
(78.3)
Interest expense of
unconsolidated joint ventures
4 7
(42.9)
Interest income
1 4
(75.0)
Restructuring and other
special credits, net
(1) --
--
Foreign exchange
gain from Argentina
(9) --
--
--------- ------- -------
EBITDA
$ 320 $ 401 (20.2)
======== ======= =======
Six Months Ended
June 30,
%
2002 2001 Variance
-------- -------- ---------
Revenues
Owned, leased and consolidated
joint venture hotels
$ 1,612 $ 1,795 (10.2)
Other hotel and leisure(a)
314 329
(4.6)
---------- -------- ---------
1,926 2,124 (9.3)
Other revenues from managed
and franchised properties(b)
402 392
2.6
---------- -------- ---------
2,328 2,516 (7.5)
---------- -------- ---------
Costs and Expenses
Owned, leased and consolidated
joint venture hotels
1,170 1,214
3.6
Selling, general,
administrative and other(c)
195 207
5.8
Restructuring and other
special credits, net
(3) (1) 200.0
Depreciation
228 212
(7.5)
Amortization
10 45
77.8
---------- ---------- ---------
1,600 1,677
4.6
Other expenses from managed
and franchised properties(b)
402 392
(2.6)
---------- ---------- ---------
2,002 2,069
3.2
---------- ---------- ---------
Operating income
326 447 (27.1)
Interest expense, net of
interest income(d)
(190) (201) 5.5
Gain (loss) on asset
dispositions, net
(4) 1 (500.0)
---------- -------- ---------
132 247 (46.6)
Income tax expense
(24) (76) 68.4
Minority equity in
net income
-- (2)
--
---------- -------- ---------
Income from
continuing operations
108 169 (36.1)
Discontinued operations
104 --
--
---------- -------- --------
Net income
$ 212 $ 169
25.4
========== ======== ========
Earnings Per
Share -- Basic
Continuing operations
$ 0.54 $ 0.84 (35.7)
Discontinued operations
0.52 --
--
---------- -------- --------
Net income
$ 1.06 $ 0.84 26.2
========= ======== ========
Earnings Per
Share -- Diluted
Continuing operations
$ 0.52 $ 0.82 (36.6)
Discontinued operations
0.51 --
--
========= ======= ========
Net income
$ 1.03 $ 0.82 25.6
========= ======= ========
Weighted average
number of Shares
201 201
========= =======
Weighted average number
of Shares assuming dilution
206 207
========= =======
Reconciliation of Operating
Income to EBITDA(e)
Operating income
$ 326 $ 447 (27.1)
Depreciation(f)
239 225
6.2
Amortization(f)
10 45
(77.8)
Interest expense of
unconsolidated joint ventures
8 13
(38.5)
Interest income
1 7
(85.7)
Restructuring and other
special credits, net
(3) (1) (200.0)
Foreign exchange
gain from Argentina
(33) --
--
------- ------ ---------
EBITDA
$ 548 $ 736 (25.5)
====== ======= =========
(a) Other hotel and leisure revenues include
management and franchise fees earned from third party hotel owners, the
Company's interest in unconsolidated joint ventures and the sale and financing
of VOIs.
(b) In accordance with a Financial Accounting
Standards Board staff announcement, the Company has included in revenues
the reimbursement of costs incurred on behalf of managed hotel property
owners and franchisees and included in costs and expenses these reimbursed
costs. These costs relate primarily to payroll costs at managed properties
where the Company is the employer. Since the reimbursements made are based
upon costs incurred with no added margin, the adoption of this guidance
has no effect on operating income, total or per Share net income, cash
flows or the financial position of the Company.
(c) Selling, general, administrative and
other expenses includes the cost of sales of VOIs and other costs of vacation
ownership operations.
(d) Interest expense includes early debt
extinguishment costs of $29 million and $9 million, respectively, in 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)
June 30,
2002
Total assets
$ 12,302
Cash and cash equivalents
$ 196
Total debt(a)
$ 5,497
Shares outstanding(b)
203
(a) Excludes Starwood's share of unconsolidated
joint venture debt aggregating approximately $318 million.
(b) Shares outstanding include partnership units
and exchangeable preferred shares.
STARWOOD
HOTELS & RESORTS WORLDWIDE, INC.
Hotel Results - Same Store (1)
For the Quarter Ended June 30, 2002
UNAUDITED
WORLDWIDE
NORTH AMERICA
------------------------- ------------------------
2002 2001 Var.
2002 2001 Var.
---- ---- ----
---- ---- ----
160 Hotels
111 Hotels
-------------------------- -------------------------
OWNED HOTELS
REVPAR ($)
101.02 112.54 -10.2% 98.93
110.10 -10.1%
ADR ($)
151.93 160.73 -5.5% 145.20
155.30 -6.5%
OCCUPANCY (%)
66.5% 70.0% -3.5
68.1% 70.9% -2.8
69
45
SHERATON
-------------------------- -------------------------
REVPAR ($)
82.43 95.38 -13.6%
86.79 100.35 -13.5%
ADR ($)
129.60 139.24 -6.9% 131.36
141.92 -7.4%
OCCUPANCY (%)
63.6% 68.5% -4.9
66.1% 70.7% -4.6
36
23
WESTIN
-------------------------- -------------------------
REVPAR ($)
113.51 123.85 -8.3% 100.97
110.66 -8.8%
ADR ($)
158.22 164.85 -4.0% 140.35
148.56 -5.5%
OCCUPANCY (%)
71.7% 75.1% -3.4
71.9% 74.5% -2.6
16
5
LUXURY
COLLECTION
-------------------------- -------------------------
REVPAR ($)
205.57 236.57 -13.1% 210.13
245.80 -14.5%
ADR ($)
340.94 340.98 0.0%
334.75 352.54 -5.0%
OCCUPANCY (%) 60.3%
69.4% -9.1 62.8%
69.7% -6.9
10
10
W
-------------------------- ------------------------
REVPAR ($)
144.85 147.81 -2.0% 144.85
147.81 -2.0%
ADR ($)
202.09 215.94 -6.4% 202.09
215.94 -6.4%
OCCUPANCY (%)
71.7% 68.5% 3.2
71.7% 68.5% 3.2
29
28
OTHER
-------------------------- -------------------------
REVPAR ($)
76.93 80.65 -4.6%
79.01 84.20 -6.2%
ADR ($)
113.54 120.56 -5.8% 117.47
125.60 -6.5%
OCCUPANCY (%)
67.7% 66.9% 0.8
67.3% 67.0% 0.3
INTERNATIONAL(2)
2002 2001
Var.
---- ----
----
49 Hotels
OWNED HOTELS
------------------------------------------
REVPAR ($)
107.30 119.89
-10.5%
ADR ($)
174.31 177.98
-2.1%
OCCUPANCY (%)
61.6% 67.4%
-5.8
24
SHERATON
------------------------------------------
REVPAR ($)
72.47 84.04
-13.8%
ADR ($)
125.02 132.45
-5.6%
OCCUPANCY (%)
58.0% 63.5%
-5.5
13
WESTIN
------------------------------------------
REVPAR ($)
158.54 171.05
-7.3%
ADR ($)
223.22 220.94
1.0%
OCCUPANCY (%)
71.0% 77.4%
-6.4
11
LUXURY
COLLECTION
------------------------------------------
REVPAR ($)
201.29 227.88
-11.7%
ADR ($)
347.22 329.99
5.2%
OCCUPANCY (%)
58.0% 69.1%
-11.1
W
REVPAR ($)
ADR ($)
OCCUPANCY (%)
1
OTHER
------------------------------------------
REVPAR ($)
55.86 44.10
26.7%
ADR ($)
76.82 67.44
13.9%
OCCUPANCY (%)
72.7% 65.4%
7.3
(1) Hotel Results exclude 1 hotel under significant
renovation or without comparable results, 3 hotels without prior year results
and 2 hotels sold during 2001 and 2002.
(2) See next page for breakdown by division.
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Hotel Results - Same Store (1)
For the Quarter Ended June 30, 2002
UNAUDITED
EUROPE
LATIN AMERICA
----------------------- ------------------------
2002 2001 Var.
2002 2001 Var.
---- ---- ----
---- ---- ----
33 Hotels
13 Hotels
OWNED HOTELS
-------------------------- -------------------------
REVPAR ($)
150.97 163.93 -7.9%
55.76 74.07 -24.7%
ADR ($)
227.35 222.80 2.0%
105.44 125.38 -15.9%
OCCUPANCY (%)
66.4% 73.6% -7.2
52.9% 59.1% -6.2
12
10
SHERATON
-------------------------- -------------------------
REVPAR ($)
100.10 107.99 -7.3%
50.48 68.38 -26.2%
ADR ($)
148.77 146.92 1.3%
101.57 123.53 -17.8%
OCCUPANCY (%)
67.3% 73.5% -6.2
49.7% 55.4% -5.7
10
3
WESTIN
-------------------------- -------------------------
REVPAR ($)
186.49 196.22 -5.0%
82.49 102.78 -19.7%
ADR ($)
259.82 253.97 2.3%
119.56 132.04 -9.5%
OCCUPANCY (%)
71.8% 77.3% -5.5
69.0% 77.8% -8.8
11
LUXURY
COLLECTION
--------------------------
REVPAR ($)
201.29 227.88 -11.7%
ADR ($)
347.22 329.99 5.2%
OCCUPANCY (%)
58.0% 69.1% -11.1
OTHER
REVPAR ($)
ADR ($)
OCCUPANCY (%)
ASIA PACIFIC
------------------------------
2002 2001
Var.
---- ----
----
3 Hotels
OWNED HOTELS
------------------------------
REVPAR ($)
65.28 57.23
14.1%
ADR ($)
97.78 88.63
10.3%
OCCUPANCY (%)
66.8% 64.6%
2.2
2
SHERATON
------------------------------
REVPAR ($)
72.53 67.33
7.7%
ADR ($)
116.64 105.30
10.8%
OCCUPANCY (%)
62.2% 63.9%
-1.7
WESTIN
REVPAR ($)
ADR ($)
OCCUPANCY (%)
LUXURY
COLLECTION
REVPAR ($)
ADR ($)
OCCUPANCY (%)
1
OTHER
REVPAR ($)
55.86 44.10
26.7%
ADR ($)
76.82 67.44
13.9%
OCCUPANCY (%)
72.7% 65.4%
7.3
(1) Hotel Results exclude 1 hotel under significant
renovation or without comparable results, 3 hotels without prior year results
and 2 hotels sold during 2001 and 2002.
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Hotel Results - Comparable (1)
For the Quarter Ended June 30, 2002
UNAUDITED ($thousands)
WORLDWIDE
NORTH AMERICA
-------------------------- -------------------------
2002 2001 Var.
2002 2001 Var.
---- ---- ----
---- ---- ----
161 Hotels
111 Hotels
OWNED HOTELS
-------------------------- -------------------------
Total REVENUE 833,752
923,238 -9.7% 609,955 678,114
-10.1%
Total EBITDA 252,862
312,789 -19.2% 178,080 224,741 -20.8%
MARGIN %
30.3% 33.9% -3.6
29.2% 33.1% -3.9
70
45
SHERATON
-------------------------- -------------------------
REVENUE
331,436 377,022 -12.1% 235,491 267,867
-12.1%
EBITDA
104,209 127,421 -18.2% 72,935
92,162 -20.9%
MARGIN %
31.4% 33.8% -2.4
31.0% 34.4% -3.4
36
23
WESTIN
-------------------------- -------------------------
REVENUE
238,777 259,600 -8.0% 165,339
181,654 -9.0%
EBITDA
73,970 90,669 -18.4% 47,522
58,836 -19.2%
MARGIN %
31.0% 34.9% -3.9
28.7% 32.4% -3.7
16
5
LUXURY COLLECTION
-------------------------- -------------------------
REVENUE
119,062 133,531 -10.8% 69,290
79,229 -12.5%
EBITDA
33,972 46,159 -26.4% 16,726
24,879 -32.8%
MARGIN %
28.5% 34.6% -6.1
24.1% 31.4% -7.3
10
10
W
-------------------------- -------------------------
REVENUE
64,358 67,266 -4.3% 64,358
67,266 -4.3%
EBITDA
18,737 21,976 -14.7% 18,737
21,976 -14.7%
MARGIN %
29.1% 32.7% -3.6
29.1% 32.7% -3.6
29
28
OTHER
-------------------------- -------------------------
REVENUE
80,119 85,819 -6.6% 75,477
82,098 -8.1%
EBITDA
21,974 26,564 -17.3% 22,160
26,888 -17.6%
MARGIN %
27.4% 31.0% -3.6
29.4% 32.8% -3.4
INTERNATIONAL(2)
-------------------------------
2002 2001
Var.
---- ----
----
50 Hotels
OWNED HOTELS
-------------------------------
Total REVENUE
223,797 245,124
-8.7%
Total EBITDA
74,782 88,048
-15.1%
MARGIN %
33.4% 35.9%
-2.5
25
SHERATON
-------------------------------
REVENUE
95,945 109,155 -12.1%
EBITDA
31,274 35,259
-11.3%
MARGIN %
32.6% 32.3%
0.3
13
WESTIN
-------------------------------
REVENUE
73,438 77,946
-5.8%
EBITDA
26,448 31,833
-16.9%
MARGIN %
36.0% 40.8%
-4.8
11
LUXURY COLLECTION
-------------------------------
REVENUE
49,772 54,302
-8.3%
EBITDA
17,246 21,280
-19.0%
MARGIN %
34.7% 39.2%
-4.5
W
REVENUE
EBITDA
MARGIN %
1
OTHER
-------------------------------
REVENUE
4,642 3,721
24.8%
EBITDA
(186) (324)
-42.6%
MARGIN %
-4.0% -8.7%
4.7
(1) 3 hotels without prior year results and 2 hotels
sold during 2001 and 2002.
(2) See next page for breakdown by division.
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Hotel Results - Comparable (1)
For the Quarter Ended June 30, 2002
UNAUDITED ($thousands)
EUROPE
LATIN AMERICA
--------------------------- -------------------------
2002 2001 Var.
2002 2001 Var.
---- ---- ----
---- ---- ----
33 Hotels
13 Hotels
OWNED HOTELS
-------------------------- -------------------------
Total REVENUE 161,340
171,540 -5.9% 45,439 59,843
-24.1%
Total EBITDA 54,398
63,177 -13.9% 17,406 23,055
-24.5%
MARGIN %
33.7% 36.8% -3.1
38.3% 38.5% -0.2
12
10
SHERATON
-------------------------- -------------------------
REVENUE
50,875 54,597 -6.8% 32,694
44,538 -26.6%
EBITDA
14,983 16,434 -8.8% 13,127
16,685 -21.3%
MARGIN %
29.5% 30.1% -0.6
40.2% 37.5% 2.7
10
3
WESTIN
-------------------------- -------------------------
REVENUE
60,693 62,641 -3.1% 12,745
15,305 -16.7%
EBITDA
22,169 25,463 -12.9% 4,279
6,370 -32.8%
MARGIN %
36.5% 40.6% -4.1
33.6% 41.6% -8.0
11
LUXURY COLLECTION
--------------------------
REVENUE
49,772 54,302 -8.3%
EBITDA
17,246 21,280 -19.0%
MARGIN %
34.7% 39.2% -4.5
OTHER
REVENUE
EBITDA
MARGIN %
ASIA PACIFIC
------------------------------
2002 2001
Var.
---- ----
----
4 Hotels
OWNED HOTELS
------------------------------
Total REVENUE
17,018 13,741
23.8%
Total EBITDA
2,978 1,816
64.0%
MARGIN %
17.5% 13.2%
4.3
3
SHERATON
------------------------------
REVENUE
12,376 10,020
23.5%
EBITDA
3,164 2,140
47.9%
MARGIN %
25.6% 21.4%
4.2
WESTIN
REVENUE
EBITDA
MARGIN %
LUXURY COLLECTION
REVENUE
EBITDA
MARGIN %
1
OTHER
------------------------------
REVENUE
4,642 3,721
24.8%
EBITDA
(186) (324)
-42.6%
MARGIN %
-4.0% -8.7%
4.7
(1) 3 hotels without prior year results and 2 hotels
sold during 2001 and 2002.
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Hotel Results - Same Store (1)
For the six months Ended June 30, 2002
UNAUDITED
WORLDWIDE
NORTH AMERICA
------------------------- ------------------------
2002 2001 Var.
2002 2001 Var.
---- ---- ----
---- ---- ----
156 Hotels
110 Hotels
OWNED HOTELS
------------------------- ------------------------
REVPAR ($)
96.40 111.08 -13.2% 96.80
110.94 -12.7%
ADR ($)
151.40 162.71 -7.0% 149.22
160.94 -7.3%
OCCUPANCY (%)
63.7% 68.3% -4.6
64.9% 68.9% -4.0
68
44
SHERATON
------------------------- ------------------------
REVPAR ($)
78.86 94.09 -16.2%
83.15 97.97 -15.1%
ADR ($)
130.02 141.82 -8.3% 133.33
144.97 -8.0%
OCCUPANCY (%)
60.7% 66.3% -5.6
62.4% 67.6% -5.2
35
23
WESTIN
------------------------- ------------------------
REVPAR ($)
108.42 122.72 -11.7% 100.98
114.51 -11.8%
ADR ($)
156.63 165.33 -5.3% 144.35
153.23 -5.8%
OCCUPANCY (%)
69.2% 74.2% -5.0
70.0% 74.7% -4.7
14
5
LUXURY COLLECTION
------------------------- ------------------------
REVPAR ($)
211.06 244.23 -13.6% 239.77
279.86 -14.3%
ADR ($)
338.87 346.55 -2.2% 369.95
385.25 -4.0%
OCCUPANCY (%)
62.3% 70.5% -8.2
64.8% 72.6% -7.8
10
10
W
------------------------- ------------------------
REVPAR ($)
133.14 147.90 -10.0% 133.14
147.90 -10.0%
ADR ($)
202.25 220.68 -8.4% 202.25
220.68 -8.4%
OCCUPANCY (%)
65.8% 67.0% -1.2
65.8% 67.0% -1.2
29
28
OTHER
------------------------- ------------------------
REVPAR ($)
69.99 76.10 -8.0%
71.62 78.64 -8.9%
ADR ($)
110.28 119.93 -8.0% 114.44
124.85 -8.3%
OCCUPANCY (%)
63.5% 63.5% 0.0
62.6% 63.0% -0.4
INTERNATIONAL(2)
-------------------------------
2002 2001
Var.
---- ----
----
46 Hotels
OWNED HOTELS
REVPAR ($)
95.20 111.51
-14.6%
ADR ($)
158.59 168.34
-5.8%
OCCUPANCY (%)
60.0% 66.2%
-6.2
-------------------------------
24
SHERATON
-------------------------------
REVPAR ($)
69.68 85.81
-18.8%
ADR ($)
122.28 134.70
-9.2%
OCCUPANCY (%)
57.0% 63.7%
-6.7
12
WESTIN
REVPAR ($)
137.27 154.32
-11.0%
ADR ($)
206.83 213.51
-3.1%
OCCUPANCY (%)
66.4% 72.3%
-5.9
9
LUXURY COLLECTION
-------------------------------
REVPAR ($)
177.62 202.65
-12.4%
ADR ($)
299.34 298.27
0.4%
OCCUPANCY (%)
59.3% 67.9%
-8.6
W
REVPAR ($)
ADR ($)
OCCUPANCY (%)
1
OTHER
-------------------------------
REVPAR ($)
53.46 49.96
7.0%
ADR ($)
73.90 73.24
0.9%
OCCUPANCY (%)
72.3% 68.2%
4.1
(1) Hotel Results exclude 1 hotel under significant
renovation or without comparable results, 7 hotels without prior year results
and 4 hotels sold during 2001 and 2002.
(2) See next page for breakdown by division.
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Hotel Results - Same Store (1)
For the six months Ended June 30, 2002
UNAUDITED
EUROPE
LATIN AMERICA
2002 2001 Var.
2002 2001 Var.
---- ---- ----
---- ---- ----
30 Hotels
13 Hotels
OWNED HOTELS
REVPAR ($) 127.40
141.81 -10.2% 62.14
85.27 -27.1%
ADR ($) 203.00
206.43 -1.7% 113.95
136.99 -16.8%
OCCUPANCY (%) 62.8%
68.7% -5.9 54.5%
62.2% -7.7
12
10
SHERATON
REVPAR ($) 90.04
100.12 -10.1% 54.14
76.97 -29.7%
ADR ($) 140.94
145.49 -3.1% 106.67
131.16 -18.7%
OCCUPANCY(%) 63.9%
68.8% -4.9 50.8%
58.7% -7.9
9
3
WESTIN
REVPAR ($) 151.41
165.55 -8.5% 102.68
126.99 -19.1%
ADR ($) 238.84
239.82 -0.4% 139.42
158.41 -12.0%
OCCUPANCY (%) 63.4%
69.0% -5.6 73.6%
80.2% -6.6
9
LUXURY COLLECTION
REVPAR ($) 177.62
202.65 -12.4%
ADR ($)
299.34 298.27 0.4%
OCCUPANCY (%) 59.3%
67.9% -8.6
ASIA PACIFIC
2002 2001 Var.
---- ---- ----
3 Hotels
OWNED HOTELS
REVPAR ($)
62.22 63.93 -2.7%
ADR ($)
93.98 93.17 0.9%
OCCUPANCY (%)
66.2% 68.6% -2.4
2
SHERATON
REVPAR ($)
68.96 74.67 -7.6%
ADR ($)
112.16 108.32 3.5%
OCCUPANCY(%)
61.5% 68.9% -7.4
WESTIN
REVPAR ($)
ADR ($)
OCCUPANCY (%)
LUXURY COLLECTION
REVPAR ($)
ADR ($)
OCCUPANCY (%)
1
OTHER
REVPAR ($)
53.46 49.96 7.0%
ADR ($)
73.90 73.24 0.9%
OCCUPANCY (%)
72.3% 68.2% 4.1
(1) Hotel Results exclude 1 hotel under significant
renovation or without comparable results, 7 hotels without prior year results
and 4 hotels sold during 2001 and 2002.
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Hotel Results - Comparable (1)
For the six months Ended June 30, 2002
UNAUDITED ($thousands)
WORLDWIDE
NORTH AMERICA
------------------------- ----------------------------
2002 2001 Var.
2002 2001 Var.
---- ---- ----
---- ---- ----
157 Hotels
110 Hotels
OWNED HOTELS
---------------------------- ----------------------------
Total
REVENUE 1,525,288
1,750,086 -12.8% 1,150,891 1,319,781 -12.8%
Total
EBITDA
435,450 575,301 -24.3% 324,203
432,620 -25.1%
MARGIN %
28.5% 32.9% -4.4
28.2% 32.8% -4.6
69
44
SHERATON
---------------------------- ----------------------------
REVENUE
592,465 694,196 -14.7% 414,002
481,004 -13.9%
EBITDA
169,461 222,282 -23.8% 116,820
154,501 -24.4%
MARGIN %
28.6% 32.0% -3.4
28.2% 32.1% -3.9
35
23
WESTIN
---------------------------- ----------------------------
REVENUE
449,781 510,083 -11.8% 332,330
378,922 -12.3%
EBITDA
135,185 175,842 -23.1% 97,009
126,888 -23.5%
MARGIN %
30.1% 34.5% -4.4
29.2% 33.5% -4.3
14
5
LUXURY COLLECTION
---------------------------- ----------------------------
REVENUE
217,961 252,667 -13.7% 148,316
174,907 -15.2%
EBITDA
64,614 89,563 -27.9% 43,665
63,389 -31.1%
MARGIN %
29.6% 35.4% -5.8
29.4% 36.2% -6.8
10
10
W
---------------------------- ----------------------------
REVENUE
118,543 133,025 -10.9% 118,543
133,025 -10.9%
EBITDA
31,457 43,326 -27.4% 31,457
43,326 -27.4%
MARGIN %
26.5% 32.6% -6.1
26.5% 32.6% -6.1
29
28
OTHER
---------------------------- ----------------------------
REVENUE
146,538 160,115 -8.5% 137,700
151,923 -9.4%
EBITDA
34,733 44,288 -21.6% 35,252
44,516 -20.8%
MARGIN %
23.7% 27.7% -4.0
25.6% 29.3% -3.7
INTERNATIONAL(2)
--------------------------------
2002 2001
Var.
---- ----
----
47 Hotels
OWNED HOTELS
--------------------------------
Total REVENUE
374,397 430,305 -13.0%
Total EBITDA
111,247 142,681 -22.0%
MARGIN %
29.7% 33.2%
-3.5
--------------------------------
25
SHERATON
--------------------------------
REVENUE
178,463 213,192 -16.3%
EBITDA
52,641 67,781
-22.3%
MARGIN %
29.5% 31.8%
-2.3
12
WESTIN
--------------------------------
REVENUE
117,451 131,161 -10.5%
EBITDA
38,176 48,954
-22.0%
MARGIN %
32.5% 37.3%
-4.8
9
LUXURY COLLECTION
--------------------------------
REVENUE
69,645 77,760
-10.4%
EBITDA
20,949 26,174
-20.0%
MARGIN %
30.1% 33.7%
-3.6
W
REVENUE
EBITDA
MARGIN %
1
OTHER
--------------------------------
REVENUE
8,838 8,192
7.9%
EBITDA
(519) (228)
127.6%
MARGIN %
-5.9% -2.8%
-3.1
(1) 7 hotels without prior year results and 4 hotels
sold during 2001 and 2002.
(2) See next page for breakdown by division.
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Hotel Results - Comparable (1)
For the six months Ended June 30, 2002
UNAUDITED ($thousands)
EUROPE
LATIN AMERICA
-------------------------- --------------------------
2002 2001 Var.
2002 2001 Var.
---- ---- ----
---- ---- ----
30 Hotels
13 Hotels
OWNED HOTELS
-------------------------- --------------------------
Total
REVENUE
246,501 272,545 -9.6% 96,519
128,949 -25.1%
Total
EBITDA
68,836 83,895 -17.9% 37,332
54,015 -30.9%
MARGIN %
27.9% 30.8% -2.9
38.7% 41.9% -3.2
-------------------------- --------------------------
12
10
SHERATON
-------------------------- --------------------------
REVENUE
88,649 98,499 -10.0% 67,275
94,074 -28.5%
EBITDA
22,055 25,797 -14.5% 24,988
36,985 -32.4%
MARGIN %
24.9% 26.2% -1.3
37.1% 39.3% -2.2
9
3
WESTIN
-------------------------- --------------------------
REVENUE
88,207 96,286 -8.4%
29,244 34,875 -16.1%
EBITDA
25,832 31,924 -19.1% 12,344
17,030 -27.5%
MARGIN %
29.3% 33.2% -3.9
42.2% 48.8% -6.6
9
LUXURY COLLECTION
--------------------------
REVENUE
69,645 77,760 -10.4%
EBITDA
20,949 26,174 -20.0%
MARGIN %
30.1% 33.7% -3.6
OTHER
REVENUE
EBITDA
MARGIN %
ASIA PACIFIC
2002 2001
Var.
---- ----
----
4 Hotels
OWNED HOTELS
Total
REVENUE
31,377 28,811
8.9%
Total
EBITDA
5,079 4,771
6.5%
MARGIN %
16.2% 16.6%
-0.4
--------------------------------
3
SHERATON
REVENUE
22,539 20,619
9.3%
EBITDA
5,598 4,999
12.0%
MARGIN %
24.8% 24.2%
0.6
WESTIN
REVENUE
EBITDA
MARGIN %
LUXURY COLLECTION
REVENUE
EBITDA
MARGIN %
1
OTHER
REVENUE
8,838 8,192
7.9%
EBITDA
(519) (228)
127.6%
MARGIN %
-5.9% -2.8%
-3.1
(1) 7 hotels without prior year results and 4 hotels
sold during 2001 and 2002.
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Debt Portfolio Summary
As of June 30, 2002
UNAUDITED (in millions)
Interest Balance
Interest Avg Maturity
Debt
Terms (in
% of Rate
(in years)
millions) Portfolio
------------- --------- ----------- ---------
--------- ------------
Floating
Rate Debt:
Senior
credit
facility
Revolving
credit
facility Various
$ 614 11%
3.78% 0.7
Term loan LIBOR + 135
194 4%
3.19% 0.6
------- ------ -------
808 15%
3.64% 0.6
450M Euro
facility EURIBOR + 195
446 8%
5.39% 1.0
Mortgages
and other Various
311 6%
5.67% 2.1
Interest rate swaps
1,000 18% 4.03%
------- ------ -------
Total Floating
2,565 47%
4.34% 1.0
Fixed Rate Debt:
Sheraton Holding
public debt (1)
1,306 24%
7.08% 8.7
Senior notes
1,507 27%
7.64% 7.5
Convertible debt (2)
311 6%
3.25% 1.9
Mortgages and other
808 14%
7.37% 9.7
Interest rate swaps
(1,000) -18% 7.24%
Total Fixed
2,932 53%
6.99% 7.9
------- ------ -------
Total Debt
$ 5,497 100%
5.75% 5.9
======= ======= =======
Maturities
Less than 1 year
$ 1,388
2-3 years
720
4-5 years
1,281
Greater than 5 years
2,108
$ 5,497
(1) Balance consists of outstanding
public debt of $1.297 billion, net of a $9 million fair value adjustment
related to $450 million of fixed to floating interest rate swaps.
(2) Maturity date reflects the
earlier of the first put date or the maturity date of the revolving credit
facility which would be used to refinance the amount put to the Company.
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Hotels under
Renovation and/or without Comparable Results &
Other Selected Items
For the Three Months Ended June 30, 2002
UNAUDITED
Properties under Significant Renovation
or without Comparable Results during
the 2nd Quarter 2002
Property
Location
--------
--------
W Chicago - Lake Shore
Chicago, IL
Sheraton Royal Denarau Resort
Nadi, Fiji
Westin Dublin Hotel
Dublin, Ireland
W New York - Times Square
New York, NY
Selected Balance Sheet and Cash Flow Items:
Cash and cash equivalents
$ 196
Capital expenditures
$ 66
Debt level
$ 5,497
Shares Repurchased
-
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Summary of Portfolio by Properties & Rooms
As of June 30, 2002
UNAUDITED
PROPERTIES
Lux. Col./ Four
Sheraton Westin St. Regis Points
W Other Total
-------- ------ ---------- ------
- ----- -----
Owned,
leased &
consolidated
JVs
68 37
18 7 12
22 164
Unconsolidated
joint
ventures
29 9
2 2 -
1 43
----- ----
---- ---- ---- ---- -----
Equity interest
properties 97
46 20
9 12 23
207
Managed
(third-party
owned)
143 38
18 21 4
4 228
Franchised,
represented &
referral 159
26 12
113 - -
310
----- ----
---- ---- ---- ---- -----
Total
399 110
50 143 16
27 745
==== ====
=== ==== === ===
====
ROOMS
Sheraton Westin Lux. Col./ Four
St. Regis Points W Other
Total
-------- ------ ---------- ------
- ----- -----
Owned,
leased &
consolidated
JVs
26,989 14,104 3,731
1,782 4,391 5,397 56,394
Unconsolidated
joint
ventures 11,510
3,763 441
328 - 132 16,174
-------- ------ ------
------ --- ----- ------
Equity
interest
properties 38,499 17,867
4,172 2,110 4,391 5,529
72,568
Managed
(third-party
owned) 48,000
18,864 3,474 3,834
597 624 75,393
Franchised,
represented &
referral 46,725
8,493 1,473 20,556
- - 77,247
-------- ------ ------
------ --- ----- ------
Total 133,224
45,224 9,119 26,500 4,988
6,153 225,208
======== ====== ====== =======
===== ===== =======
Starwood Vacation Ownership
Resort List 2002
NUMBER NUMBER
OF ROOMS OF ROOMS
BUILT AT COMPLETION
FLORIDA Orlando
Sheraton's Vistana Resort 1682
1682
Orlando Sheraton's Vistana Villages 340
1450
Orlando Oak Plantation
242 242
Port St. Lucie Sheraton's PGA
Vacation Resort 30
306
Hutchison Island Vistana's
Beach Club(b)
76 76
SOUTH CAROLINA Myrtle Beach Sheraton's
Broadway Plantation 228
550
ARIZONA Scottsdale Sheraton's Desert
Oasis 150
150
Scottsdale The Westin Kierland Resort,
Spa & Villas(a)
0 158
COLORADO Avon Sheraton's Mountain Vista(a)
52 87
Lakeside Terrace
24 24
CALIFORNIA Rancho Mirage
The Westin Mission 16(a)
158
Hills Resort & Villas(a)
HAWAII Maui The Westin Ka`anapali
Ocean Resort & Villas(a)
103(a) 280
ST. JOHN, U.S.V.I. St. John The Westin St. John
Resort & Villas
67 96
THE BAHAMAS Paradise Island
Harborside Resort
at Atlantis
90 198
(a) Under Construction
(b) No Inventory Available |
