STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
(In millions, except per Share data)
Three Months Ended
Year Ended
December 31,
December 31,
------------------------
-------------------------
%
%
2005 2004 Variance
2005 2004 Variance
------- ------- --------
------- ------- ---------
Revenues
Owned, leased and
consolidated joint
$894 $878
1.8 venture hotels $3,517 $3,326
5.7
Vacation ownership
and residential
192 197
(2.5) sales and services 889
640 38.9
Management fees,
franchise fees and
152 120
26.7 other income
501 419 19.6
Other revenues from
managed and
franchised
278 247
12.6 properties (a) 1,070
983 8.9
------- ------- --------
------- ------- ---------
1,516 1,442
5.1
5,977 5,368 11.3
Costs and Expenses
Owned, leased and
consolidated joint
672 655
(2.6) venture hotels 2,634
2,519 (4.6)
Vacation ownership
158 154
(2.6) and residential 661
488 (35.5)
Selling, general,
administrative and
96 87
(10.3) other
370 331 (11.8)
Restructuring and
other special
charges (credits),
13 --
n/m net
13 (37) n/m
82 107
23.4 Depreciation
387 413 6.3
7
5 (40.0) Amortization
20 18 (11.1)
Other expenses from
managed and
franchised
278 247
(12.6) properties (a) 1,070
983 (8.9)
------- ------- --------
------- ------- ---------
1,306 1,255
(4.1)
5,155 4,715 (9.3)
210 187
12.3 Operating income 822
653 25.9
Gain on sale of VOI
25
3 n/m notes receivable
25 14 78.6
Equity earnings
from
unconsolidated
24 10
n/m ventures, net
64 32 100.0
Interest expense,
net of interest
income of $8, $1,
(58) (61)
4.9 $19 and $3
(239) (254) 5.9
Gain (loss) on
asset dispositions
and impairments,
2 (25)
n/m net
(30) (33) 9.1
------- ------- --------
------- ------- ---------
Income from
continuing
operations before
taxes and minority
203 114
78.1 equity
642 412 55.8
(44) (2)
n/m Income tax expense (172)
(43) n/m
Tax expense on
repatriation of
--
- -- foreign earnings
(47) -
n/m
Minority equity in
-- (1)
100.0 net (income) loss --
-- --
------- ------- --------
------- ------- ---------
Income from
continuing
159 111
43.2 operations
423 369 14.6
Discontinued
operations:
Loss from
--
- -- operations (b)
(1) -
n/m
Gain (loss) on
-- (11)
100.0 disposition (c)
-- 26 (100.0)
------- ------- --------
------- ------- ---------
$159 $100
59.0 Net income
$422 $395 6.8
======= ======= ========
======= ======= =========
Earnings Per Share
- Basic
Continuing
$0.72 $0.53
35.8 operations
$1.95 $1.78 9.6
Discontinued
-- (0.05)
100.0 operations
-- 0.13 (100.0)
------- ------- --------
------- ------- ---------
$0.72 $0.48
50.0 Net income
$1.95 $1.91 2.1
======= ======= ========
======= ======= =========
Earnings Per Share
- Diluted
Continuing
$0.70 $0.51
37.3 operations
$1.88 $1.72 9.3
Discontinued
-- (0.05)
100.0 operations
-- 0.12 (100.0)
------- ------- --------
------- ------- ---------
$0.70 $0.46
52.2 Net income
$1.88 $1.84 2.2
======= ======= ========
======= ======= =========
Weighted average
219 208
number of Shares 217
207
======= =======
======= =======
Weighted average
number of Shares
228 217
assuming dilution 225 215
======= =======
======= =======
(a) The Company includes in revenues
the reimbursement of costs
incurred on
behalf of managed hotel property owners and
franchisees
with no added margin and includes in costs and
expenses these
reimbursed costs. These costs relate primarily
to payroll
costs at managed properties where the Company is
the employer.
(b) 2005 activity primarily represents
a sales and use tax
assessment
related to the Company's gaming business disposed
of in 1999
for periods prior to its disposition.
(c) 2004 activity represents the reversal
of reserves that are no
longer required
as the related contingencies have been
resolved and
the favorable resolution of certain tax matters
related to
the 1999 divestiture of the Company's gaming
business.
n/m = not meaningful
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
CONSOLIDATED BALANCE SHEETS
(in millions, except share data)
December 31, December 31,
2005 2004
------------ ------------
Assets
Current assets:
Cash and cash equivalents
$897 $326
Restricted cash
295 347
Accounts receivable, net of allowance for
doubtful accounts of $50 and $58
642 482
Inventories
280 371
Prepaid expenses and other
169 157
------------ ------------
Total current assets
2,283 1,683
Investments
403 453
Plant, property and equipment, net
3,956 4,341
Assets held for sale (a)
2,614 2,656
Goodwill and intangible assets, net
2,796 2,544
Other assets (b)
402 621
------------ ------------
$12,454 $12,298
============ ============
Liabilities and Stockholders' Equity
Current liabilities:
Short-term borrowings and current
maturities of long-term debt (c)
$1,219 $617
Accounts payable
156 200
Accrued expenses
1,049 867
Accrued salaries, wages and benefits
297 299
Accrued taxes and other
140 143
------------ ------------
Total current liabilities
2,861 2,126
Long-term debt (c)
2,226 2,661
Long-term debt held for sale (d)
700 1,164
Deferred income taxes
563 880
Other liabilities
851 652
------------ ------------
7,201 7,483
Minority interest
25 27
Commitments and contingencies
Stockholders' equity:
Class A exchangeable preferred shares of
the Trust; $0.01 par value; authorized
30,000,000 shares; outstanding 562,222
and 597,825 shares at December 31,
2005
and December 31, 2004, respectively
--
-
Corporation common stock; $0.01 par
value; authorized 1,050,000,000 shares;
outstanding 217,218,781 and 208,730,800
shares at December 31, 2005 and December
31, 2004, respectively
2
2
Trust Class B shares of beneficial
interest; $0.01 par value; authorized
1,000,000,000 shares; outstanding
217,218,781 and 208,730,800 shares
at
December 31, 2005 and December 31,
2004,
respectively
2
2
Additional paid-in capital
5,429 5,121
Deferred compensation
(53) (14)
Accumulated other comprehensive loss
(322) (255)
Retained earnings (accumulated deficit)
170 (68)
------------ ------------
Total stockholders' equity
5,228 4,788
------------ ------------
$12,454 $12,298
============ ============
(a) Includes 38 hotels expected to
be sold in connection with the
definitive
agreement signed on November 14, 2005 with Host
Marriott Corporation
as well as three additional hotels which
had signed
definitive agreements at December 31, 2005 and
which were
later sold in January 2006.
(b) Includes restricted cash of $12
million and $10 million at
December 31,
2005 and 2004, respectively.
(c) Excludes Starwood's share of unconsolidated
joint venture debt
aggregating
approximately $469 million and $438 million at
December 31,
2005 and 2004, respectively.
(d) Represents the debt that is expected
to be assumed by Host
Marriott Corporation
in connection with the definitive
agreement
signed on November 14, 2005.
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Non-GAAP to GAAP Reconciliations - Historical Data
(in millions)
Three Months Ended
Year Ended
December 31,
December 31,
-------------------------
-------------------------
%
%
2005 2004 Variance
2005 2004 Variance
------- ------- ---------
------- ------- ---------
Reconciliation of
Net Income to
EBITDA and
Adjusted EBITDA
$159 $100
59.0 Net income
$422 $395 6.8
Interest
76 66
15.2 expense(a)
283 275 2.9
Income tax
44 26
69.2 expense(b)
218 34
n/m
93 115
(19.1) Depreciation(c) 423
445 (4.9)
8
8 -- Amortization (d)
26 26
--
------- ------- ---------
------- ------- ---------
380 315
20.6 EBITDA
1,372 1,175 16.8
Adjustment to
costs associated
with construction
--
- -- remediation
-- (4) 100.0
(Gain) loss on
asset
dispositions and
(2) 25
n/m impairments, net 30
33 9.1
Restructuring and
other special
charges
13 --
n/m (credits), net
13 (37) n/m
Discontinued
-- (13)
100.0 operations(e)
2 (17) n/m
------- ------- ---------
------- ------- ---------
$391 $327
19.6 Adjusted EBITDA $1,417 $1,150
23.2
======= ======= =========
======= ======= =========
(a) Includes $10 million and $4 million of interest expense
related to
unconsolidated joint ventures for
the three months ended December
31, 2005 and 2004, respectively, and
$25 million and $18 million
for the year ended December 31, 2005
and 2004, respectively.
(b) Includes $0 million and $24 million of tax expense
(benefit)
recorded in discontinued operations
for the three months ended
December 31, 2005 and 2004, respectively,
and $(1) million and
$(9) million for the year ended December
31, 2005 and 2004,
respectively. Also includes $47 million
of tax expense on the
repatriation of foreign earnings for
the year ended December 31,
2005.
(c) Includes $11 million and $8 million of Starwood's
share of
depreciation expense of unconsolidated
joint ventures for the
three months ended December 31, 2005
and 2004, respectively, and
$36 million and $32 million for the
year ended December 31, 2005
and 2004, respectively.
(d) Includes $1 million and $3 million of Starwood's share
of
amortization expense of unconsolidated
joint ventures for the
three months ended December 31, 2005
and 2004, respectively, and
$6 million and $8 million for the
year ended December 31, 2005 and
2004, respectively.
(e) Excludes the taxes already added back as noted in
(b) above.
Three Months
Ended
Year Ended
December 31,
December 31,
---------------
---------------
2005 2004
2005 2004
------- -------
------- -------
Cash Flow Data
$159 $100 Net income
$422 $395
Discontinued operations:
-- 11
Gain on dispositions
-- (26)
Other adjustments relating to
10 --
discontinued operations
11 1
(47) (60) (Increase) decrease
in restricted cash 50 (257)
Adjustments to income from continuing
operations, changes in working
(176) 150 capital,
and other
281 465
------- -------
------- -------
Cash from (used for) operating
$(54) $201 activities
$764 $578
======= =======
======= =======
Cash from (used for) investing
$339 $(91) activities
$85 $(415)
======= =======
======= =======
$(287) $(22) Cash used for financing
activities $(253) $(273)
======= =======
======= =======
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Non-GAAP
to GAAP Reconciliations - Future Performance
(In millions)
Three Months Ended
Year Ended
March 31, 2006
December 31, 2006
------------------
-----------------
Income from continuing
$64 operations(a)
$455
66 Interest expense
178
14 Income tax expense
224
79 Depreciation and amortization
323
----------------
----------------
223 EBITDA
1,180
15 Le Meridien transition costs
30
----------------
----------------
$238 Adjusted EBITDA
$1,210
================
================
Three Months Ended
Year Ended
March 31, 2006
December 31, 2006
------------------
------------------
Income from continuing
$64 operations(a)
$455
----------------
-----------------
$0.29 EPS
$2.05
----------------
-----------------
Special Items
15 Le Meridien transition costs
30
----------------
-----------------
15 Total special items - pre-tax
30
Income tax (benefit) expense on
(5) special items
(10)
----------------
-----------------
10 Total special items - after-tax
20
----------------
-----------------
Income from continuing operations
$74 excluding special items
$475
----------------
-----------------
$0.33 EPS excluding special items
$2.14
================
=================
(a) The Company expects to realize significant income
tax benefits and
certain one-time financing costs in
connection with the pending
transaction with Host Marriott Corporation
which will be recorded
at the time that the transaction is
approved by Host Marriott
Corporation's shareholders and/or
the transaction is consummated.
At this time, these benefits and costs
cannot be quantified and
are therefore not included in the
above estimates of future
performance.
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Non-GAAP to GAAP Reconciliations - Future
Performance (continued)
(In millions)
Reconciliation from Previous
Guidance to Current Guidance
Previous 2006 EBITDA guidance
$1,250
Plus: Expected first quarter results from hotels being
sold
to Host Marriott
Revenues
292
Expenses
(222)
Fees and other income
(26)
Less: Expected results from additional asset sales
Revenues
(153)
Expenses
106
Fees and other income
3
Less: Stock option expense
(45)
---------
Adjusted previous 2006 EBITDA guidance
$1,205
---------
Current 2006 EBITDA guidance
$1,210
=========
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Non-GAAP to GAAP Reconciliations -
Same Store Owned Hotel Revenue and Expenses
(In millions)
Three Months Ended
Year Ended
December 31,
December 31,
------------------------
------------------------
Same-Store Owned
% Hotels (1)
%
2005 2004 Variance
Worldwide 2005
2004 Variance
------- ------- --------
------- ------- --------
Revenue
Same-Store Owned
$843 $791
6.6 Hotels
$3,183 $2,943 8.2
Hotels Sold or
Closed in 2005
and 2004 (12
18 43
(58.1) hotels)
123 168 (26.8)
Hotels Without
Comparable
Results (11
33 44
(25.0) hotels)
205 209 (1.9)
Other ancillary
-- --
-- hotel operations
6 6
--
------- ------- --------
------- ------- --------
Total Owned, Leased
and Consolidated
Joint Venture
$894 $878
1.8 Hotels Revenue $3,517
$3,326 5.7
======= ======= ========
======= ======= ========
Costs and Expenses
Same-Store Owned
$620 $587
(5.6) Hotels
$2,374 $2,231 (6.4)
Hotels Sold or
Closed in 2005
and 2004 (12
15 33
54.5 hotels)
91 129 29.5
Hotels Without
Comparable
Results
37 35
(5.7) (11 hotels)
165 155 (6.5)
Other ancillary
-- --
-- hotel operations
4 4
--
------- ------- --------
------- ------- --------
Total Owned, Leased
and Consolidated
Joint Venture
Hotels Costs and
$672 $655
(2.6) Expenses
$2,634 $2,519 (4.6)
======= ======= ========
======= ======= ========
Three Months Ended
Year Ended
December 31,
December 31,
------------------------
------------------------
Same-Store Owned
% Hotels
%
2005 2004 Variance
North America 2005 2004
Variance
------- ------- --------
------- ------- --------
Revenue
Same-Store Owned
$626 $573
9.2 Hotels
$2,306 $2,128 8.4
Hotels Sold or
Closed in 2005
and 2004 (10
11 32
(65.6) hotels)
86 118 (27.1)
Hotels Without
Comparable
Results (9
32 37
(13.5) hotels)
178 177 0.6
------- ------- --------
------- ------- --------
Total Owned, Leased
and Consolidated
Joint Venture
$669 $642
4.2 Hotels Revenue $2,570
$2,423 6.1
======= ======= ========
======= ======= ========
Costs and Expenses
Same-Store Owned
$453 $423
(7.1) Hotels
$1,709 $1,612 (6.0)
Hotels Sold or
Closed in 2005
and 2004 (10
10 25
60.0 hotels)
68 95 28.4
Hotels Without
Comparable
Results (9
33 28
(17.9) hotels)
145 130 (11.5)
------- ------- --------
------- ------- --------
Total Owned, Leased
and Consolidated
Joint Venture
Hotels Costs and
$496 $476
(4.2) Expenses
$1,922 $1,837 (4.6)
======= ======= ========
======= ======= ========
Three Months Ended
Year Ended
December 31,
December 31,
------------------------
------------------------
Same-Store Owned
% Hotels
%
2005 2004 Variance
International 2005 2004
Variance
------- ------- --------
------- ------- --------
Revenue
Same-Store Owned
$217 $218
(0.5) Hotels
$877 $815 7.6
Hotels Sold or
Closed in 2005
and 2004 (2
7
11 (36.4) hotels)
37 50 (26.0)
Hotels Without
Comparable
Results (2
1
7 (85.7) hotels)
27 32 (15.6)
Other ancillary
hotel
-- --
-- operations
6 6
--
------- ------- --------
------- ------- --------
Total Owned, Leased
and Consolidated
Joint Venture
$225 $236
(4.7) Hotels Revenue $947
$903 4.9
======= ======= ========
======= ======= ========
Costs and Expenses
Same-Store Owned
$167 $164
(1.8) Hotels
$665 $619 (7.4)
Hotels Sold or
Closed in 2005
and 2004 (2
5
8 37.5 hotels)
23 34 32.4
Hotels Without
Comparable
Results (2
4
7 42.9 hotels)
20 25 20.0
Other ancillary
hotel
-- --
-- operations
4 4
--
------- ------- --------
------- ------- --------
Total Owned, Leased
and Consolidated
Joint Venture
Hotels Costs and
$176 $179
1.7 Expenses
$712 $682 (4.4)
======= ======= ========
======= ======= ========
(1) Same-Store Owned Hotel Results exclude 12 hotels sold
or closed in
2005 and 2004 and 11 hotels without
comparable results.
STARWOOD
HOTELS & RESORTS WORLDWIDE, INC.
Hotel Results - Same Store Owned Hotels (1)
For the Three Months Ended
December 31, 2005
UNAUDITED
WORLDWIDE NORTH
AMERICA
--------------------- ---------------------
2005 2004 Var. 2005
2004 Var.
------- ------- ----- ------- ------- -----
120 Hotels
79 Hotels
--------------------- ---------------------
SAME STORE OWNED HOTELS
REVPAR ($)
125.47 114.71 9.4% 127.76 113.88 12.2%
ADR ($)
182.91 170.96 7.0% 184.65 168.64 9.5%
OCCUPANCY (%)
68.6% 67.1% 1.5 69.2% 67.5%
1.7
53
31
--------------------- ---------------------
SHERATON
REVPAR ($)
104.79 96.84 8.2% 112.40 100.64 11.7%
ADR ($)
156.65 146.25 7.1% 166.57 151.15 10.2%
OCCUPANCY (%)
66.9% 66.2% 0.7 67.5% 66.6%
0.9
32
19
--------------------- ---------------------
WESTIN
REVPAR ($)
127.00 117.15 8.4% 113.60 102.84 10.5%
ADR ($)
178.58 170.22 4.9% 158.09 146.48 7.9%
OCCUPANCY (%)
71.1% 68.8% 2.3 71.9% 70.2%
1.7
8
3
--------------------- ---------------------
ST. REGIS/LUXURY COLLECTION
REVPAR ($)
281.35 267.32 5.2% 302.16 274.02 10.3%
ADR ($)
423.33 407.20 4.0% 431.18 393.67 9.5%
OCCUPANCY (%)
66.5% 65.6% 0.9 70.1% 69.6%
0.5
10
10
--------------------- ---------------------
W
REVPAR ($)
216.92 182.51 18.9% 216.92 182.51 18.9%
ADR ($)
288.09 252.92 13.9% 288.09 252.92 13.9%
OCCUPANCY (%)
75.3% 72.2% 3.1 75.3% 72.2%
3.1
17
16
--------------------- ---------------------
OTHER
REVPAR ($)
85.76 77.22 11.1% 80.45 71.79
12.1%
ADR ($)
131.56 122.95 7.0% 128.47 121.93 5.4%
OCCUPANCY (%)
65.2% 62.8% 2.4 62.6% 58.9%
3.7
INTERNATIONAL(2)
--------------------------
2005 2004 Var.
--------- --------- ------
41 Hotels
--------------------------
SAME STORE OWNED HOTELS
REVPAR ($)
118.84 117.11 1.5%
ADR ($)
177.68 177.82 (0.1%)
OCCUPANCY (%)
66.9% 65.9% 1.0
22
--------------------------
SHERATON
REVPAR ($)
89.50 89.30 0.2%
ADR ($)
136.18 136.33 (0.1%)
OCCUPANCY (%)
65.7% 65.5% 0.2
13
--------------------------
WESTIN
REVPAR ($)
173.21 165.78 4.5%
ADR ($)
252.65 258.61 (2.3%)
OCCUPANCY (%)
68.6% 64.1% 4.5
5
--------------------------
ST. REGIS/LUXURY COLLECTION
REVPAR ($)
239.54 253.10 (5.4%)
ADR ($)
404.66 442.10 (8.5%)
OCCUPANCY (%)
59.2% 57.2% 2.0
W
REVPAR ($)
ADR ($)
OCCUPANCY (%)
1
--------------------------
OTHER
REVPAR ($)
116.50 108.71 7.2%
ADR ($)
145.55 127.01 14.6%
OCCUPANCY (%)
80.0% 85.6% (5.6)
(1) Hotel Results exclude 12 hotels sold or closed and
10 hotels
without comparable results during
2004 & 2005
(2) See next page for breakdown by division
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Hotel Results - Same Store Owned Hotels (1)
For the Three Months Ended
December 31, 2005
UNAUDITED
EUROPE
LATIN AMERICA
---------------------- ---------------------
2005 2004 Var. 2005
2004 Var.
------- ------- ------ ------- ------- -----
27 Hotels
10 Hotels
---------------------- ---------------------
SAME STORE OWNED HOTELS
REVPAR ($)
152.06 149.67 1.6% 75.78 69.40
9.2%
ADR ($)
223.29 235.59 (5.2%) 116.66 108.05 8.0%
OCCUPANCY (%)
68.1% 63.5% 4.6 65.0%
64.2% 0.8
11
8
---------------------- ---------------------
SHERATON
REVPAR ($)
111.81 108.82 2.7% 67.20 62.80
7.0%
ADR ($)
159.23 165.06 (3.5%) 105.40 100.00 5.4%
OCCUPANCY (%)
70.2% 65.9% 4.3 63.8%
62.8% 1.0
11
2
---------------------- ---------------------
WESTIN
REVPAR ($)
182.88 178.02 2.7% 131.89 112.67 17.1%
ADR ($)
270.70 287.51 (5.8%) 181.12 153.09 18.3%
OCCUPANCY (%)
67.6% 61.9% 5.7 72.8%
73.6% (0.8)
5
----------------------
ST. REGIS/LUXURY
COLLECTION
REVPAR ($)
239.54 253.10 (5.4%)
ADR ($)
404.66 442.10 (8.5%)
OCCUPANCY (%)
59.2% 57.2% 2.0
OTHER
REVPAR ($)
ADR ($)
OCCUPANCY (%)
ASIA PACIFIC
------------------------
2005 2004 Var.
-------- ------- -------
4 Hotels
------------------------
SAME STORE OWNED HOTELS
REVPAR ($)
106.13 116.00 (8.5%)
ADR ($)
157.81 148.81 6.0%
OCCUPANCY (%)
67.3% 77.9% (10.6)
3
------------------------
SHERATON
REVPAR ($)
99.78 120.46 (17.2%)
ADR ($)
167.94 164.42 2.1%
OCCUPANCY (%)
59.4% 73.3% (13.9)
WESTIN
REVPAR ($)
ADR ($)
OCCUPANCY (%)
ST. REGIS/LUXURY COLLECTION
REVPAR ($)
ADR ($)
OCCUPANCY (%)
1
------------------------
OTHER
REVPAR ($)
116.50 108.71 7.2%
ADR ($)
145.55 127.01 14.6%
OCCUPANCY (%)
80.0% 85.6% (5.6)
(1) Hotel Results exclude 12 hotels sold or closed and
10 hotels
without comparable results during
2004 & 2005
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Hotel Results - Same Store Owned Hotels (1)
For the Three Months Ended
December 31, 2005
UNAUDITED ($ thousands except variances)
WORLDWIDE(3)
NORTH AMERICA(3)
------------------------ ------------------------
2005 2004 Var.
2005 2004 Var.
-------- -------- ------ -------- -------- ------
120 Hotels
79 Hotels
------------------------ ------------------------
SAME STORE OWNED
HOTELS
Total REVENUE 843,362
790,804 6.6% 626,213 573,282
9.2%
Total EXPENSE 619,892
586,557 (5.7%) 453,094 422,443 (7.3%)
53
31
------------------------ ------------------------
SHERATON
REVENUE
343,286 325,359 5.5% 235,059 216,099
8.8%
EXPENSE
245,877 234,829 (4.7%) 166,790 157,006 (6.2%)
32
19
------------------------ ------------------------
WESTIN
REVENUE
250,486 233,374 7.3% 171,737 156,058
10.0%
EXPENSE
188,406 176,458 (6.8%) 126,031 115,699 (8.9%)
8
3
------------------------ ------------------------
ST. REGIS/LUXURY
COLLECTION
REVENUE
90,317 89,507 0.9% 69,561
67,464 3.1%
EXPENSE
67,009 65,729 (1.9%) 50,088 48,575
(3.1%)
10
10
------------------------ ------------------------
W(3)
REVENUE
106,427 94,149 13.0% 106,427 94,149
13.0%
EXPENSE
75,083 68,847 (9.1%) 75,083 68,847
(9.1%)
17
16
------------------------ ------------------------
OTHER
REVENUE
52,846 48,415 9.2% 43,429
39,512 9.9%
EXPENSE
43,517 40,694 (6.9%) 35,102 32,315
(8.6%)
INTERNATIONAL(2)
------------------------
2005 2004 Var.
-------- -------- ------
41 Hotels
------------------------
SAME STORE OWNED HOTELS
Total REVENUE
217,149 217,522 (0.2%)
Total EXPENSE
166,798 164,115 (1.6%)
22
------------------------
SHERATON
REVENUE
108,227 109,260 (0.9%)
EXPENSE
79,087 77,823 (1.6%)
13
------------------------
WESTIN
REVENUE
78,749 77,316 1.9%
EXPENSE
62,375 60,759 (2.7%)
5
------------------------
ST. REGIS/LUXURY COLLECTION
REVENUE
20,756 22,043 (5.8%)
EXPENSE
16,921 17,154 1.4%
W(3)
REVENUE
EXPENSE
1
------------------------
OTHER
REVENUE
9,417 8,903 5.8%
EXPENSE
8,415 8,379 (0.4%)
(1) Hotel Results exclude 12 hotels sold or closed and
10 hotels
without comparable results during
2004 & 2005
(2) See next page for breakdown by division
(3)Includes lease expense of $4,288 in 2005 and 2004 related
to the
lease of the W Times Square in New
York
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Hotel Results - Same Store Owned Hotels (1)
For the Three Months Ended
December 31, 2005
UNAUDITED ($ thousands except variances)
EUROPE
LATIN AMERICA
------------------------ ------------------------
2005 2004 Var.
2005 2004 Var.
-------- -------- ------ -------- ------- -------
27 Hotels
10 Hotels
------------------------ ------------------------
SAME STORE OWNED
HOTELS
Total REVENUE 139,185
142,980 (2.7%) 50,249 44,982 11.7%
Total EXPENSE 112,340
113,978 1.4% 33,143 28,105 (17.9%)
11
8
------------------------ ------------------------
SHERATON
REVENUE
52,783 54,465 (3.1%) 37,146 34,138
8.8%
EXPENSE
42,124 43,569 3.3% 24,063 20,601
(16.8%)
11
2
------------------------ ------------------------
WESTIN
REVENUE
65,646 66,472 (1.2%) 13,103 10,844
20.8%
EXPENSE
53,295 53,255 (0.1%) 9,080 7,504
(21.0%)
5
------------------------
ST. REGIS/LUXURY
COLLECTION
REVENUE
20,756 22,043 (5.8%)
EXPENSE
16,921 17,154 1.4%
OTHER
REVENUE
EXPENSE
ASIA PACIFIC
------------------------
2005 2004 Var.
-------- ------- -------
4 Hotels
------------------------
SAME STORE OWNED
HOTELS
Total REVENUE
27,715 29,560 (6.2%)
Total EXPENSE
21,315 22,032 3.3%
3
------------------------
SHERATON
REVENUE
18,298 20,657 (11.4%)
EXPENSE
12,900 13,653 5.5%
WESTIN
REVENUE
EXPENSE
ST. REGIS/LUXURY
COLLECTION
REVENUE
EXPENSE
1
------------------------
OTHER
REVENUE
9,417 8,903 5.8%
EXPENSE
8,415 8,379 (0.4%)
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Hotel Results - Same Store Owned Hotels (1)
For the Twelve Months Ended December 31, 2005
UNAUDITED
WORLDWIDE NORTH
AMERICA
--------------------- ---------------------
2005 2004 Var. 2005
2004 Var.
------- ------- ----- ------- ------- -----
119 Hotels
78 Hotels
--------------------- ---------------------
SAME STORE OWNED HOTELS
REVPAR ($)
123.14 111.01 10.9% 123.02 110.13 11.7%
ADR ($)
174.70 162.50 7.5% 170.93 156.62 9.1%
OCCUPANCY (%)
70.5% 68.3% 2.2 72.0% 70.3%
1.7
52
30
--------------------- ---------------------
SHERATON
REVPAR ($)
99.98 91.51 9.3% 105.28 96.10
9.6%
ADR ($)
146.63 136.87 7.1% 150.58 137.48 9.5%
OCCUPANCY (%)
68.2% 66.9% 1.3 69.9% 69.9%
0.0
32
19
--------------------- ---------------------
WESTIN
REVPAR ($)
134.54 121.61 10.6% 118.64 107.21 10.7%
ADR ($)
182.34 170.88 6.7% 157.55 146.14 7.8%
OCCUPANCY (%)
73.8% 71.2% 2.6 75.3% 73.4%
1.9
8
3
--------------------- ---------------------
ST. REGIS/LUXURY
COLLECTION
REVPAR ($)
263.37 238.86 10.3% 265.64 232.63 14.2%
ADR ($)
397.36 386.67 2.8% 379.41 357.38 6.2%
OCCUPANCY (%)
66.3% 61.8% 4.5 70.0% 65.1%
4.9
10
10
--------------------- ---------------------
W
REVPAR ($)
195.65 164.23 19.1% 195.65 164.23 19.1%
ADR ($)
255.01 225.57 13.1% 255.01 225.57 13.1%
OCCUPANCY (%)
76.7% 72.8% 3.9 76.7% 72.8%
3.9
17
16
--------------------- ---------------------
OTHER
REVPAR ($)
88.71 79.80 11.2% 84.76 76.09
11.4%
ADR ($)
128.71 120.54 6.8% 126.27 120.42 4.9%
OCCUPANCY (%)
68.9% 66.2% 2.7 67.1% 63.2%
3.9
INTERNATIONAL(2)
-----------------------
2005 2004 Var.
-------- ------- ------
41 Hotels
-----------------------
SAME STORE OWNED HOTELS
REVPAR ($)
123.48 113.48 8.8%
ADR ($)
186.30 181.21 2.8%
OCCUPANCY (%)
66.3% 62.6% 3.7
22
-----------------------
SHERATON
REVPAR ($)
89.72 82.65 8.6%
ADR ($)
138.36 135.52 2.1%
OCCUPANCY (%)
64.8% 61.0% 3.8
13
-----------------------
WESTIN
REVPAR ($)
188.20 169.67 10.9%
ADR ($)
274.08 265.81 3.1%
OCCUPANCY (%)
68.7% 63.8% 4.9
5
-----------------------
ST. REGIS/LUXURY COLLECTION
REVPAR ($)
258.80 252.06 2.7%
ADR ($)
440.48 460.58 (4.4%)
OCCUPANCY (%)
58.8% 54.7% 4.1
W
REVPAR ($)
ADR ($)
OCCUPANCY (%)
1
-----------------------
OTHER
REVPAR ($)
111.55 101.36 10.1%
ADR ($)
140.63 121.06 16.2%
OCCUPANCY (%)
79.3% 83.7% (4.4)
(1) Hotel Results exclude 12 hotels sold or closed and
11 hotels
without comparable results during
2004 & 2005
(2) See next page for breakdown by division
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Hotel Results - Same Store Owned Hotels (1)
For the Twelve Months Ended December 31, 2005
UNAUDITED
EUROPE
LATIN AMERICA
---------------------- ---------------------
2005 2004 Var. 2005
2004 Var.
------- ------- ------ ------- ------- -----
27 Hotels
10 Hotels
---------------------- ---------------------
SAME STORE OWNED HOTELS
REVPAR ($)
162.98 151.12 7.8% 68.90 59.54
15.7%
ADR ($)
242.29 240.26 0.8% 110.65 105.00
5.4%
OCCUPANCY (%)
67.3% 62.9% 4.4 62.3%
56.7% 5.6
11
8
---------------------- ---------------------
SHERATON
REVPAR ($)
115.27 107.09 7.6% 59.64 52.30
14.0%
ADR ($)
166.56 164.48 1.3% 99.27 96.17
3.2%
OCCUPANCY (%)
69.2% 65.1% 4.1 60.1%
54.4% 5.7
11
2
---------------------- ---------------------
WESTIN
REVPAR ($)
201.58 183.80 9.7% 129.57 107.00 21.1%
ADR ($)
301.54 296.40 1.7% 169.09 148.80 13.6%
OCCUPANCY (%)
66.8% 62.0% 4.8 76.6%
71.9% 4.7
5
----------------------
ST. REGIS/LUXURY
COLLECTION
REVPAR ($)
258.80 252.06 2.7%
ADR ($)
440.48 460.58 (4.4%)
OCCUPANCY (%)
58.8% 54.7% 4.1
OTHER
REVPAR ($)
ADR ($)
OCCUPANCY (%)
ASIA PACIFIC
----------------------
2005 2004 Var.
-------- ------- -----
4 Hotels
----------------------
SAME STORE OWNED HOTELS
REVPAR ($)
113.99 107.92 5.6%
ADR ($)
157.64 142.48 10.6%
OCCUPANCY (%)
72.3% 75.7% (3.4)
3
----------------------
SHERATON
REVPAR ($)
115.49 111.95 3.2%
ADR ($)
169.79 158.00 7.5%
OCCUPANCY (%)
68.0% 70.9% (2.9)
WESTIN
REVPAR ($)
ADR ($)
OCCUPANCY (%)
ST. REGIS/LUXURY COLLECTION
REVPAR ($)
ADR ($)
OCCUPANCY (%)
1
----------------------
OTHER
REVPAR ($)
111.55 101.36 10.1%
ADR ($)
140.63 121.06 16.2%
OCCUPANCY (%)
79.3% 83.7% (4.4)
(1) Hotel Results exclude 12 hotels sold or closed and
11 hotels
without comparable results during
2004 & 2005
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Hotel Results - Same Store Owned Hotels (1)
For the Twelve Months Ended December 31, 2005
UNAUDITED ($ thousands except variances)
WORLDWIDE(3)
NORTH AMERICA(3)
---------------------------- ----------------------------
2005 2004
Var. 2005 2004
Var.
---------- ---------- ------ ---------- ---------- ------
119 Hotels
78 Hotels
---------------------------- ----------------------------
SAME STORE
OWNED HOTELS
Total
REVENUE 3,183,144 2,942,769
8.2% 2,306,326 2,128,197 8.4%
Total
EXPENSE 2,374,355 2,231,127
(6.4%) 1,709,386 1,611,571 (6.1%)
52
30
---------------------------- ----------------------------
SHERATON
REVENUE 1,244,041 1,172,115
6.1% 822,021 780,581 5.3%
EXPENSE 924,576
874,609 (5.7%) 608,518 584,921
(4.0%)
32
19
---------------------------- ----------------------------
WESTIN
REVENUE 1,015,265
926,911 9.5% 682,069 620,840
9.9%
EXPENSE 739,932
689,214 (7.4%) 490,782 456,523
(7.5%)
8
3
---------------------------- ----------------------------
ST. REGIS/
LUXURY
COLLECTION
REVENUE 326,581
311,603 4.8% 240,588 227,472
5.8%
EXPENSE 250,166
240,950 (3.8%) 182,914 174,349
(4.9%)
10
10
---------------------------- ----------------------------
W(3)
REVENUE 384,758
336,232 14.4% 384,758 336,232
14.4%
EXPENSE 286,329
264,972 (8.1%) 286,329 264,972
(8.1%)
17
16
---------------------------- ----------------------------
OTHER
REVENUE 212,499
195,908 8.5% 176,890 163,072
8.5%
EXPENSE 173,352
161,382 (7.4%) 140,844 130,806
(7.7%)
INTERNATIONAL(2)
------------------------
2005 2004 Var.
-------- -------- ------
41 Hotels
------------------------
SAME STORE OWNED HOTELS
Total REVENUE
876,818 814,572 7.6%
Total EXPENSE
664,968 619,556 (7.3%)
22
------------------------
SHERATON
REVENUE
422,020 391,534 7.8%
EXPENSE
316,058 289,688 (9.1%)
13
------------------------
WESTIN
REVENUE
333,196 306,071 8.9%
EXPENSE
249,150 232,691 (7.1%)
5
------------------------
ST. REGIS/LUXURY COLLECTION
REVENUE
85,993 84,131 2.2%
EXPENSE
67,252 66,601 (1.0%)
W(3)
REVENUE
EXPENSE
1
------------------------
OTHER
REVENUE
35,609 32,836 8.4%
EXPENSE
32,508 30,576 (6.3%)
(1) Hotel Results exclude 12 hotels sold or closed and
11 hotels
without comparable results during
2004 & 2005
(2) See next page for breakdown by division
(3) Includes lease expense of $17,150 in 2005 and 2004
related to the
lease of the W Times Square in New
York
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Hotel Results - Same Store Owned Hotels (1)
For the Twelve Months Ended December 31, 2005
UNAUDITED ($ thousands except variances)
EUROPE
LATIN AMERICA
------------------------ -------------------------
2005 2004 Var.
2005 2004 Var.
-------- -------- ------ -------- -------- -------
27 Hotels
10 Hotels
------------------------ -------------------------
SAME STORE OWNED
HOTELS
Total REVENUE 584,233
553,812 5.5% 178,015 152,504
16.7%
Total EXPENSE 460,449
437,671 (5.2%) 117,359 100,222 (17.1%)
11
8
------------------------ -------------------------
SHERATON
REVENUE
215,429 204,032 5.6% 127,630 112,082
13.9%
EXPENSE
174,660 164,877 (5.9%) 86,746 73,724
(17.7%)
11
2
------------------------ -------------------------
WESTIN
REVENUE
282,811 265,649 6.5% 50,385 40,422
24.6%
EXPENSE
218,537 206,193 (6.0%) 30,613 26,498
(15.5%)
5
------------------------
ST. REGIS/LUXURY
COLLECTION
REVENUE
85,993 84,131 2.2%
EXPENSE
67,252 66,601 (1.0%)
OTHER
REVENUE
EXPENSE
ASIA PACIFIC
------------------------
2005 2004 Var.
-------- -------- ------
4 Hotels
------------------------
SAME STORE OWNED HOTELS
Total REVENUE
114,570 108,256 5.8%
Total EXPENSE
87,160 81,663 (6.7%)
3
------------------------
SHERATON
REVENUE
78,961 75,420 4.7%
EXPENSE
54,652 51,087 (7.0%)
WESTIN
REVENUE
EXPENSE
ST. REGIS/LUXURY COLLECTION
REVENUE
EXPENSE
1
------------------------
OTHER
REVENUE
35,609 32,836 8.4%
EXPENSE
32,508 30,576 (6.3%)
(1) Hotel Results exclude 12 hotels sold or closed and
11 hotels
without comparable results during
2004 & 2005
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Debt Portfolio Summary
As of December 31, 2005
UNAUDITED
Avg
Interest Balance % of
Interest Maturity
Debt
Terms (in millions) Portfolio Rate
(in years)
----------------- -------- ------------- --------- --------
----------
Floating Rate
Debt:
Senior credit
facility
Revolving
credit
Various
facility
+ 125
$11 0%
4.57% 0.8
Term loan
LIBOR
+ 125
450 11% 5.64%
0.7
------------- --------- -------- ----------
461 11% 5.61%
0.7
Mortgages and
other
Various 481
12% 4.05% 1.4
Interest rate LIBOR
swaps
+ 423
300 7%
8.77%
------------- --------- --------
Total Floating
1,242 30% 5.77%
1.0
Fixed Rate Debt:
Senior notes (1)
1,494 36% 6.70%
3.9
Convertible debt
360 9%
3.50% 4.0
Mortgages and
other
649 15% 7.07%
4.6
Interest rate
swaps
(300) (7%) 7.88%
------------- --------- --------
Total Fixed
2,203 53% 6.14%
3.6
------------- --------- --------
Total
$3,445 83%
6.01% 2.9
============= ========= ========
Floating rate
debt classified
as held for sale
25 1%
4.30% 4.0
Fixed rate debt
classified as
held for sale
675 16% 7.63%
12.3
------------- --------- --------
Total debt
classified as
held for sale
$700 17% 7.50%
12.0
============= ========= ========
Total Debt
$4,145 100% 6.27%
4.4
============= ========= ========
Maturities
------------------------------
less than 1 year $1,219
1-3 years 851
4-5 years 481
greater than 5 years 1,594
-------
$4,145
=======
------------------------------
(1) Balance consists of outstanding public debt of $1.497
billion and
a $19 million fair value adjustment
related to the unamortized
gain on fixed to floating interest
rate swaps terminated in
September 2002 and March 2004 and
a ($22) million fair value
adjustment related to current fixed
to floating interest rate
swaps.
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Hotels without Comparable
Results & Other Selected Items
As of December 31, 2005
UNAUDITED ($ millions)
Properties without comparable results in 2005:
Property
Location
--------
--------
St. Regis Aspen
Aspen, CO
Sheraton Kauai
Koloa, HI
Sheraton Cancun
Cancun, Mexico
W New Orleans - French Quarter
New Orleans, LA
Westin Regina Resort - Cancun
Cancun, Mexico
W New Orleans
New Orleans, LA
Westin Fort Lauderdale
Fort Lauderdale, FL
Sheraton Bal Harbour Beach Resort
Bal Harbour, FL
Sheraton Suites Key West
Key West, FL
Paradise Streams Caesars
Mt. Pocono, PA
St. Regis Hotel, San Francisco
San Francisco, CA
Properties sold or closed in 2005 and 2004:
Property
Location
--------
--------
Rancho Bernardo - Four Points
Rancho Bernardo, CA
Sheraton Denver Tech Center
Englewood, CO
Sheraton Lisboa Hotel & Towers
Lisbon, Portugal
Deerfield Beach Hilton
Ft. Lauderdale, FL
Raphael Hotel
Chicago, IL
Sheraton Chapel Hill Hotel
Chapel Hill, NC
St. Regis Washington, DC
Washington, DC
Sheraton Russell Hotel
New York, NY
Westin Philadelphia
Philadelphia, PA
Westin Princeton at Forrestal Village
Princeton, NJ
Hotel Danieli
Venice, Italy
Sheraton Ft. Lauderdale Airport Hotel
Dania, FL
Selected Balance Sheet and Cash Flow Items:
Cash and cash equivalents
(including restricted cash of $307 million)
$1,204
Debt
(including debt classified as held for sale)
$4,145
Revenues and Expenses Associated with Assets Sold in 2005
or Expected
to be Sold in the First Quarter of 2006 (1):
Q1 Q2 Q3
Q4 Full Year
--------------------------------------
Hotels Sold in 2005:
2005
Revenues
$33 $39 $25
$15 $112
Expenses
$27 $25 $17
$12 $81
2004
Revenues
$34 $42 $38
$39 $153
Expenses
$28 $30 $28
$30 $116
Hotels Classified as Held for Sale at December 31, 2005:
2005
Revenues
$282 $358 $329 $351
$1,320
Expenses
$225 $243 $232 $247
$947
2004
Revenues
$279 $333 $299 $331
$1,242
Expenses
$218 $231 $218 $236
$903
(1) Results consist of 10 hotels sold in 2005 and 41 hotels
which are
classified as held for sale at December
31, 2005. These amounts
are included in the revenues and expenses
from owned, leased and
consolidated joint venture hotels
in 2005 and 2004.
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Capital Expenditures
For the Three
and Twelve Months Ended December 31, 2005
UNAUDITED ($ millions)
Q4 YTD
------ -------
Capital Expenditures:
Owned, Leased and Consolidated Joint Venture
Hotels 99 282
Corporate/IT
22 51
------ -------
Subtotal
121 333
Vacation Ownership Capital Expenditures:
Capital expenditures (includes land acquisitions)
7 95
Net capital expenditures for inventory (1)
1 (35)
------ -------
Subtotal
8 60
Development Capital
241 424
------ -------
Total Capital Expenditures
370 817
====== =======
(1) Represents gross inventory capital expenditures of
$36 and $136 in
the three and twelve months ended
December 31, 2005, respectively,
less cost of sales of $35 and $171
in the three and twelve months
ended December 31, 2005, respectively.
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Summary of Portfolio by Properties & Rooms
As of December 31, 2005
UNAUDITED
NAD
EAME
LAD
---------------- --------------- ---------------
Owned
Hotels Rooms Hotels Rooms Hotels
Rooms
------- -------- ------- ------- ------- -------
Sheraton
33 15,653 11 3,074
7 3,235
Westin
20 9,784 11
2,372 3 901
Four Points
6 1,153 -
- -
-
W
12 4,294 -
- -
-
Luxury Collection
1 654
4 405 2
320
St. Regis
4 919
1 161 -
-
Other
11 2,611 -
- -
-
------- -------- ------- ------- ------- -------
Total Owned
87 35,068 27 6,012
12 4,456
Managed & UJV
Sheraton
41 20,565 72 21,254
12 2,230
Westin
36 19,950 8
2,302 -
-
Four Points
1 475
7 1,019 2
263
W
5 904
- -
1 237
Luxury Collection
6 1,422 8
1,405 8 188
St. Regis
3 596
1 95
- -
Le Meridien
6 1,188 71 16,910
3 839
Other
2 2,705 -
- -
-
------- -------- ------- ------- ------- -------
Total Managed & UJV
100 47,805 167 42,985
26 3,757
Franchised
Sheraton
114 35,924 28 6,943
4 1,294
Westin
21 7,994 3
1,142 3 598
Four Points
87 15,247 11 1,482
9 1,350
Luxury Collection
1 249 12
1,354 -
-
Le Meridien
3 982 11
3,820 -
-
------- -------- ------- ------- ------- -------
Total Franchised
226 60,396 65 14,741
16 3,242
----------------------------------------------------------------------
Systemwide
Sheraton
188 72,142 111 31,271
23 6,759
Westin
77 37,728 22 5,816
6 1,499
Four Points
94 16,875 18 2,501
11 1,613
W
17 5,198 -
- 1 237
Luxury Collection
8 2,325 24
3,164 10 508
St. Regis
7 1,515 2
256 -
-
Le Meridien
9 2,170 82 20,730
3 839
Other
13 5,316 -
- -
-
------- -------- ------- ------- ------- -------
Total Systemwide
413 143,269 259 63,738
54 11,455
======= ======== ======= ======= ======= =======
----------------------------------------------------------------------
ASIA
Total
--------------- ----------------
Owned
Hotels Rooms Hotels Rooms
------- ------- ------- --------
Sheraton
3 1,028 54 22,990
Westin
- - 34
13,057
Four Points
1 630 7
1,783
W
- - 12
4,294
Luxury Collection
- -
7 1,379
St. Regis
- -
5 1,080
Other
- - 11
2,611
------- ------- ------- --------
Total Owned
4 1,658 130 47,194
Managed & UJV
Sheraton
45 15,721 170 59,770
Westin
11 4,290 55 26,542
Four Points
2 387 12
2,144
W
2 353 8
1,494
Luxury Collection
- - 22
3,015
St. Regis
2 591 6
1,282
Le Meridien
23 5,215 103 24,152
Other
- -
2 2,705
------- ------- ------- --------
Total Managed & UJV
85 26,557 378 121,104
Franchised
Sheraton
19 7,086 165 51,247
Westin
5 1,226 32 10,960
Four Points
1 126 108 18,205
Luxury Collection
- - 13
1,603
Le Meridien
5 2,774 19
7,576
------- ------- ------- --------
Total Franchised
30 11,212 337 89,591
----------------------------------------------------------------------
Systemwide
Sheraton
67 23,835 389 134,007
Westin
16 5,516 121 50,559
Four Points
4 1,143 127 22,132
W
2 353 20
5,788
Luxury Collection
- - 42
5,997
St. Regis
2 591 11
2,362
Le Meridien
28 7,989 122 31,728
Other
- - 13
5,316
------- ------- ------- --------
Total Systemwide
119 39,427 845 257,889
======= ======= ======= ========
----------------------------------------------------------------------
|