STAMFORD, Conn.--July 26, 2012--Starwood Hotels & Resorts
Worldwide, Inc. (NYSE: HOT) today reported second quarter 2012
financial results.
Second Quarter 2012 Highlights
- Excluding special items, EPS from
continuing operations was $0.70, including income from the St. Regis
Bal Harbour residential project. Including special items, EPS from
continuing operations was $0.66.
- Adjusted EBITDA was $323 million,
which included $35 million of EBITDA from the St. Regis Bal Harbour
residential project, up 23.3% compared to 2011.
- Excluding special items, income
from continuing operations was $138 million, including income from the
St. Regis Bal Harbour residential project. Including special items,
income from continuing operations was $129 million.
- Worldwide Systemwide REVPAR for
Same-Store Hotels increased 6.9% in constant dollars (4.2% in actual
dollars) compared to 2011. Systemwide REVPAR for Same-Store Hotels in
North America increased 7.3% in constant dollars (6.8% in actual
dollars).
- Management fees, franchise fees and
other income increased 10.4% compared to 2011.
- Worldwide Same-Store
Company-Operated gross operating profit margins increased approximately
150 basis points compared to 2011.
- Worldwide REVPAR for Starwood
branded Same-Store Owned Hotels increased 3.1% in constant dollars
(decreased 0.4% in actual dollars) compared to 2011.
- Margins at Starwood branded
Same-Store Owned Hotels Worldwide increased approximately 140 basis
points compared to 2011.
- Earnings from Starwood’s vacation
ownership and residential business increased approximately $41
million compared to 2011, including $35 million of earnings from the
St. Regis Bal Harbour residential project.
- During the quarter, the Company
signed 34 hotel management and franchise contracts, representing
approximately 8,300 rooms, and opened 14 hotels and resorts with
approximately 2,700 rooms.
Second Quarter 2012 Earnings Summary
Starwood Hotels & Resorts Worldwide, Inc. (“Starwood” or
the “Company”) today reported EPS from continuing operations for the
second quarter of 2012 of $0.66 compared to $0.77 in the second quarter
of 2011. Excluding special items, EPS from continuing operations was
$0.70 for the second quarter of 2012, including income from The St.
Regis Bal Harbour Resort residential project (“Bal Harbour”), compared
to $0.50 in the second quarter of 2011. Special items in the second
quarter of 2012, which totaled a charge of $9 million (after-tax),
primarily related to costs associated with the early extinguishment of
debt. Special items in the second quarter of 2011, which totaled a
benefit of $53 million (after-tax), primarily related to a tax benefit
associated with the sale of two wholly-owned hotels. Excluding special
items, the effective income tax rate in the second quarter of 2012 was
31.5%, including the tax effects associated with income from Bal
Harbour, compared to 25.4% in the second quarter of 2011.
Income from continuing operations was $129 million in the
second quarter of 2012, compared to $150 million in the second quarter
of 2011. Excluding special items, income from continuing operations was
$138 million in the second quarter of 2012, including income from Bal
Harbour, compared to $97 million in the second quarter of 2011.
Net income was $122 million and $0.62 per share in the second
quarter of 2012, compared to $131 million and $0.68 per share in the
second quarter of 2011.
Frits van Paasschen, CEO, said, “We kept up our momentum in
the second quarter, despite a choppy global economy. Our REVPAR grew
6.9%, with occupancy over a healthy 71%. Despite the uncertain global
environment, we expect the trends we saw in our business for the past
quarter to continue through the second half of the year.”
“Our approach to an uncertain global marketplace is to be both
smart and bold. What we mean by ‘smart’ is having a business model,
balance sheet, and cost structure that can weather economic turbulence.
At the same time, we are being bold in our efforts to grow our
footprint in the right way, and to invest in building guest loyalty to
gain more than our fair share of business.”
Six Months Ended June 30, 2012
Earnings Summary
Income from continuing operations was $258 million in the six
months ended June 30, 2012 compared to $179 million in the same period
in 2011. Excluding special items, income from continuing operations was
$262 million in the six months ended June 30, 2012, including income
from Bal Harbour, compared to $155 million in the same period in 2011.
Net income was $250 million and $1.27 per share in the six
months ended June 30, 2012 compared to $159 million and $0.82 per share
in the same period in 2011.
Adjusted EBITDA was $620 million in the six months ended June
30, 2012 compared to $470 million in the same period in 2011.
Second Quarter 2012 Operating Results
Management and Franchise Revenues
Worldwide Systemwide REVPAR for Same-Store Hotels increased
6.9% in constant dollars (4.2% in actual dollars) compared to the
second quarter of 2011. International Systemwide REVPAR for Same-Store
Hotels increased 6.3% in constant dollars (0.9% in actual dollars).
Changes in REVPAR for Worldwide Systemwide Same-Store Hotels
by region:
|
|
REVPAR |
Region
|
|
Constant
Dollars
|
|
|
|
Actual
Dollars
|
North America |
|
7.3
|
%
|
|
|
|
6.8
|
%
|
Europe |
|
2.3
|
%
|
|
|
|
(8.0
|
)%
|
Asia Pacific |
|
9.3
|
%
|
|
|
|
7.2
|
%
|
Africa and the
Middle East |
|
11.2
|
%
|
|
|
|
8.5
|
%
|
Latin America |
|
6.1
|
%
|
|
|
|
6.1
|
%
|
|
|
|
|
|
|
|
|
|
Increases in REVPAR for Worldwide Systemwide Same-Store Hotels
by brand:
|
|
REVPAR |
Brand
|
|
Constant
Dollars
|
|
|
|
Actual
Dollars
|
St. Regis/Luxury
Collection |
|
4.5
|
%
|
|
|
|
(0.5
|
)%
|
W Hotels |
|
8.8
|
%
|
|
|
|
7.3
|
%
|
Westin |
|
7.5
|
%
|
|
|
|
5.2
|
%
|
Sheraton |
|
6.3
|
%
|
|
|
|
4.4
|
%
|
Le
Méridien |
|
6.9
|
%
|
|
|
|
0.8
|
%
|
Four Points by
Sheraton |
|
7.0
|
%
|
|
|
|
5.3
|
%
|
Aloft |
|
9.7
|
%
|
|
|
|
8.7
|
%
|
|
|
|
|
|
|
|
|
|
Worldwide Same-Store Company-Operated gross operating profit
margins increased approximately 150 basis points compared to 2011.
International gross operating profit margins for Same-Store
Company-Operated properties increased 160 basis points. North American
Same-Store Company-Operated gross operating profit margins increased
approximately 150 basis points, driven by REVPAR increases and cost
controls.
Management fees, franchise fees and other income were $222
million, up $21 million, or 10.4% compared to the second quarter of
2011. Management fees increased 13.5% to $126 million and franchise
fees increased 6.1% to $52 million. Year-over-year base management fee
and franchise fee comparisons were impacted by the conversion of some
franchise agreements to management contracts in Germany.
Development
During the second quarter of 2012, the Company signed 34 hotel
management and franchise contracts, representing approximately 8,300
rooms, of which 30 are new builds and four are conversions from other
brands. At June 30, 2012, the Company had approximately 365 hotels in
the active pipeline representing approximately 95,000 rooms.
During the second quarter of 2012, 14 new hotels and resorts
(representing approximately 2,700 rooms) entered the system, including
The St. Regis Doha (Qatar, 336 rooms), The Westin Xiamen (China, 304
rooms), The Sheraton Madrid Mirasierra Hotel & Spa (Spain, 182
rooms), Four Points by Sheraton Perth (Australia, 277 rooms), and
Aloft, Ontario (Canada, 131 rooms). Five properties (representing
approximately 1,000 rooms) were removed from the system during the
quarter.
Owned, Leased and Consolidated Joint
Venture Hotels
Worldwide REVPAR at Starwood branded Same-Store Owned Hotels
increased 3.1% in constant dollars (decreased 0.4% in actual dollars)
when compared to 2011. REVPAR at Starwood branded Same-Store Owned
Hotels in North America increased 1.1% in constant dollars (decreased
0.1% actual dollars). Excluding Canada, REVPAR at Starwood branded
Same-Store Owned Hotels in North America increased approximately 4%.
REVPAR at Canadian owned hotels decreased 6.5% in constant dollars as
group business continues to be negatively impacted by the strong
Canadian dollar. Internationally, Starwood branded Same-Store Owned
Hotel REVPAR increased 5.3% in constant dollars (decreased 0.8% in
actual dollars).
Revenues at Starwood branded Same-Store Owned Hotels Worldwide
increased 2.0% in constant dollars (decreased 1.4% in actual dollars)
while costs and expenses decreased 0.1% in constant dollars (3.3% in
actual dollars) when compared to 2011. Margins at these hotels
increased approximately 140 basis points.
Revenues at Starwood branded Same-Store Owned Hotels in North
America decreased 0.7% while costs and expenses decreased 1.7% when
compared to 2011. Margins at these hotels increased approximately 70
basis points.
Internationally, revenues at Starwood branded Same-Store Owned
Hotels increased 3.6% in constant dollars (decreased 2.2% in actual
dollars) while costs and expenses increased 0.5% in constant dollars
(decreased 5.1% in actual dollars) when compared to 2011. Margins at
these hotels increased approximately 220 basis points.
Revenues at owned, leased and consolidated joint venture
hotels were $453 million, compared to $478 million in 2011. Expenses at
owned, leased and consolidated joint venture hotels were $360 million
compared to $381 million in 2011. Second quarter results were
negatively impacted by five asset sales that took place since the
second quarter of 2011.
Vacation Ownership
Total vacation ownership revenues increased 2.8% to $148
million in the second quarter of 2012 when compared to 2011, primarily
due to the timing and recognition of deferred revenues and favorable
trends with respect to default rates on notes receivable. Originated
contract sales of vacation ownership intervals and numbers of contracts
decreased 5.0% and 1.8%, respectively, primarily due to lower closing
efficiency partially offset by increased tour flow. The average price
per vacation ownership unit sold decreased 2.6% to approximately
$14,400, driven by inventory mix.
Residential
The Company’s residential revenues were $168 million compared
to $2 million in 2011. The Company realized residential revenues from
Bal Harbour during the second quarter of 2012 of $167 million and
generated EBITDA of $35 million. During the second quarter of 2012, the
Company closed sales of 45 units and realized incremental cash proceeds
of $148 million associated with these units. From project inception
through June 30, 2012, the Company has closed contracts on
approximately 60% of the total residential units.
Selling, General, Administrative and
Other
Selling, general, administrative and other expenses decreased
2.3% to $86 million compared to $88 million in 2011, primarily due to
changes in foreign exchange rates. The Company continues to target a 4%
to 5% increase for the full year.
Capital
Gross capital spending during the quarter included
approximately $22 million of maintenance capital and $70 million of
development capital.
Share Repurchase
In the second quarter of 2012 and through July 25, the Company
repurchased 2.84 million shares at a total cost of approximately $140.0
million. As of July 25, 2012, approximately $110.0 million remained
available under the Company’s share repurchase authorization.
Balance Sheet
At June 30, 2012, the Company had gross debt of $1.652
billion, excluding $449 million of debt associated with securitized
vacation ownership notes receivable. Additionally, the Company had cash
and cash equivalents of $410 million (including $140 million of
restricted cash), and net debt of $1.242 billion, compared to net debt
of $1.383 billion as of March 31, 2012. Net debt at June 30, 2012,
including debt and restricted cash ($18 million) associated with
securitized vacation ownership notes receivables, was $1.673 billion.
At June 30, 2012, debt was approximately 88% fixed rate and
12% floating rate and its weighted average maturity was 4.4 years with
a weighted average interest rate of 7.05%, excluding the securitized
debt. The Company had cash (including current restricted cash) and
availability under the domestic and international revolving credit
facility of approximately $1.912 billion.
During the second quarter of 2012, the Company redeemed all
$495 million of its 6.25% Senior Notes due February 2013. Redemption
premiums and other costs associated with the redemption were
approximately $15 million. Additionally, the Company prepaid a loan
secured by one owned hotel of approximately $52 million.
Outlook
For the Full Year 2012:
- Including Bal Harbour, which is
expected to contribute at least $120 million of EBITDA, adjusted EBITDA
is expected to be approximately $1.190 billion to $1.210 billion.
- Excluding Bal Harbour, adjusted
EBITDA is expected to be approximately $1.070 billion to $1.090 billion,
assuming:
- REVPAR increases at Same-Store
Company-Operated Hotels Worldwide of 6% to 8% in constant dollars
(approximately 300 basis points lower in dollars at current exchange
rates).
- REVPAR increases at
branded Same-Store Owned Hotels Worldwide of 4% to 5% in constant
dollars (approximately 300 basis points lower in dollars at current
exchange rates).
- Margins at branded Same-Store
Owned Hotels Worldwide increase 100 to 150 basis points.
- Management fees, franchise fees
and other income increase approximately 9% to 11%.
- Earnings from the Company’s
vacation ownership and residential business of approximately $150
million to $155 million.
- Selling, general and
administrative expenses increase 4% to 5%.
- Full year outlook is negatively
impacted by exchange rate shifts and weaker Owned hotel trends in
Canada and Argentina
- Depreciation and amortization is
expected to be approximately $285 million.
- Interest expense is expected to be
approximately $192 million, excluding the $15 million of redemption
premiums and other costs associated with the Senior Notes redemption in
the second quarter of 2012.
- Including Bal Harbour, full year
effective tax rate is expected to be approximately 31%, and cash taxes
are expected to be approximately $100 million.
- Including Bal Harbour, EPS before
special items is expected to be approximately $2.49 to $2.56.
- Full year capital expenditures
(excluding vacation ownership and residential inventory) is expected to
be approximately $200 million for maintenance, renovation and
technology. In addition, in-flight investment projects and prior
commitments for joint ventures and other investments are expected to
total approximately $375 million.
- Vacation ownership (excluding Bal
Harbour) is expected to generate approximately $150 million in positive
cash flow. Bal Harbour is expected to generate at least $350 million in
net cash flow.
For the three months ended September 30, 2012:
- Including Bal Harbour, which is
expected to contribute at least $5 million of EBITDA, adjusted EBITDA
is expected to be approximately $260 million to $270 million.
- Excluding Bal Harbour, adjusted
EBITDA is expected to be approximately $255 million to $265 million,
assuming:
- REVPAR increases at
Same-Store Company-Operated Hotels Worldwide of 6% to 8% in constant
dollars (approximately 500 basis points lower in dollars at current
exchange rates).
- REVPAR increases at
branded Same-Store Company Owned Hotels Worldwide of 4% to 5% in
constant dollars (approximately 500 basis points lower in dollars at
current exchange rates).
- Management fees, franchise fees
and other income increase approximately 9% to 11%.
- Earnings from the Company’s
vacation ownership and residential business are flat to up $5 million
year over year.
- Third quarter outlook is negatively
impacted by approximately $5 million due to exchange rate shifts and
weaker Owned hotel trends in Canada and Argentina.
- Depreciation and amortization is
expected to be approximately $71 million.
- Interest expense is expected to be
approximately $45 million.
- Including Bal Harbour, income from
continuing operations is expected to be approximately $99 million to
$106 million, reflecting an effective tax rate of approximately 31%.
- Including Bal Harbour, EPS is
expected to be approximately $0.50 to $0.54.
Special Items
The Company’s special items netted to a charge of $16
million ($9 million after-tax) in the second quarter of 2012 compared
to a benefit of $2 million ($53 million after-tax) in the same period
of 2011.
The following represents a reconciliation of income from
continuing operations before special items to income from continuing
operations including special items (in millions, except per share
data):
Three Months Ended
June 30,
|
|
|
|
Six Months Ended
June 30,
|
2012
|
|
2011
|
|
|
|
|
2012
|
|
2011
|
|
|
|
|
|
|
|
|
|
$
|
138
|
|
|
$
|
97
|
|
|
Income
from continuing operations before special items |
|
$
|
262
|
|
|
$
|
155
|
|
$
|
0.70
|
|
|
$
|
0.50
|
|
|
EPS
before special items |
|
$
|
1.33
|
|
|
$
|
0.80
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Special Items
|
|
|
|
|
|
—
|
|
|
|
—
|
|
|
Restructuring,
goodwill impairment, and other special (charges) credits, net (a)
|
|
|
11
|
|
|
|
—
|
|
|
(1
|
)
|
|
|
2
|
|
|
Gain
(loss) on asset dispositions and impairments, net (b) |
|
|
(8
|
)
|
|
|
(31
|
)
|
|
(15
|
)
|
|
|
—
|
|
|
Debt
extinguishment (c) |
|
|
(15
|
)
|
|
|
—
|
|
|
(16
|
)
|
|
|
2
|
|
|
Total special
items – pre-tax |
|
|
(12
|
)
|
|
|
(31
|
)
|
|
7
|
|
|
|
—
|
|
|
Income tax
benefit (expense) for special items (d) |
|
|
8
|
|
|
|
—
|
|
|
—
|
|
|
|
51
|
|
|
Income
tax benefit (expense) associated with dispositions (e) |
|
|
—
|
|
|
|
55
|
|
|
(9
|
)
|
|
|
53
|
|
|
Total
special items – after-tax |
|
|
(4
|
)
|
|
|
24
|
|
|
|
|
|
|
|
|
|
|
$
|
129
|
|
|
$
|
150
|
|
|
Income
from continuing operations |
|
$
|
258
|
|
|
$
|
179
|
|
$
|
0.66
|
|
|
$
|
0.77
|
|
|
EPS
including special items |
|
$
|
1.31
|
|
|
$
|
0.92
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
|
During the six months ended June
30, 2012, the Company recorded a favorable adjustment of $11 million to
reverse a portion of a litigation
reserve.
|
|
|
|
|
|
(b)
|
|
During the three months ended June
30, 2012, the net loss primarily relates to asset disposals. The six
months ended June 30, 2012 includes
the net loss primarily related to the sale of one wholly-owned hotel.
|
|
|
|
|
|
|
|
During the three months ended June
30, 2011, the net gain primarily relates to the sale of non-core
assets. During the six months ended June
30, 2011, the net loss primarily related to an impairment of a minority
investment in a joint venture hotel located in Japan.
|
|
|
|
|
|
(c)
|
|
During the three and six months
ended June 30, 2012, the net charges are associated with the redemption
of approximately $495 million of
senior notes.
|
|
|
|
|
|
(d)
|
|
During the three and six months
ended June 30, 2012, the benefit primarily represents income tax
benefits on special items at the statutory rate.
|
|
|
|
|
|
(e)
|
|
During the three and six months
ended June 30, 2011, the benefit relates primarily to the sale of two
wholly-owned hotels with high tax bases as
a result of a previous transaction.
|
|
|
|
|
The Company has included the above supplemental information
concerning special items to assist investors in analyzing Starwood’s
financial position and results of operations. The Company has chosen to
provide this information to investors to enable them to perform
meaningful comparisons of past, present and future operating results
and as a means to emphasize the results of core on-going operations.
Starwood will be conducting a conference call to discuss the
second quarter financial results at 10:30 a.m. EDT today at (866)
921-0636 with conference ID 86194681. The conference call will be
available through a simultaneous webcast in the News & Events
section of the Company’s website at http://www.starwoodhotels.com/corporate/investor_relations.html.
A replay of the conference call will also be available from 1:30 p.m.
EDT today through Thursday, August 2, 2012 at 12:00 midnight EDT by
telephone at (855) 859-2056 with conference ID 86194681. A webcast
replay will be active beginning at 1:30 p.m. EDT today and will run for
one year.
Definitions
All references to EPS, unless otherwise noted, reflect
earnings per diluted share from continuing operations attributable to
Starwood’s common stockholders. All references to continuing
operations, discontinued operations and net income reflect amounts
attributable to Starwood’s common stockholders (i.e. excluding amounts
attributable to noncontrolling interests). All references to “net
capital expenditures” mean gross capital expenditures for timeshare and
fractional inventory net of cost of sales. EBITDA represents net income
before interest expense, taxes, depreciation and amortization. The
Company believes that EBITDA is a useful measure of the Company’s
operating performance due to the significance of the Company’s
long-lived assets and level of indebtedness. EBITDA is a commonly used
measure of performance in its industry which, when considered with GAAP
measures, the Company believes gives a more complete understanding of
the Company’s operating performance. It also facilitates comparisons
between the Company and its competitors. The Company’s management has
historically adjusted EBITDA (i.e., “Adjusted EBITDA”) when evaluating
operating performance for the Company, as well as for individual
properties or groups of properties, because the Company believes that
the inclusion or exclusion of certain recurring and non-recurring
items, such as restructuring, goodwill impairment and other special
charges and gains and losses on asset dispositions and impairments, is
necessary to provide the most accurate measure of core operating
results and as a means to evaluate comparative results. The Company’s
management also uses Adjusted EBITDA as a measure in determining the
value of acquisitions and dispositions and it is used in the annual
budget process. The Company has historically reported this measure to
its investors and believes that the continued inclusion of Adjusted
EBITDA provides consistency in its financial reporting and enables
investors to perform more meaningful comparisons of past, present and
future operating results and provides a means to evaluate the results
of its core on-going operations. EBITDA and Adjusted EBITDA are not
intended to represent cash flow from operations as defined by GAAP and
such metrics should not be considered as an alternative to net income,
cash flow from operations or any other performance measure prescribed
by GAAP. The Company’s calculation of EBITDA and Adjusted EBITDA may be
different from the calculations used by other companies and, therefore,
comparability may be limited.
All references to Same-Store Owned Hotels reflect the
Company’s owned, leased and consolidated joint venture hotels,
excluding condo hotels, hotels sold to date and hotels undergoing
significant repositionings or for which comparable results are not
available (i.e., hotels not owned during the entire periods presented
or closed due to seasonality or natural disasters). References to
Company-Operated Hotel metrics (e.g. REVPAR) reflect metrics for the
Company’s owned, leased and managed hotels. References to Systemwide
metrics (e.g. REVPAR) reflect metrics for the Company’s owned, managed
and franchised hotels. REVPAR is defined as revenue per available room.
ADR is defined as average daily rate.
All references to revenues in constant dollars represent
revenues, excluding the impact of the movement of foreign exchange
rates. The Company calculates revenues in constant dollars by
calculating revenues for the current year using the prior year’s
exchange rates. The Company uses this revenue measure to better
understand the underlying results and trends of the business, excluding
the impact of movements in foreign exchange rates.
All references to contract sales or originated sales reflect
vacation ownership sales before revenue adjustments for percentage of
completion accounting methodology. All references to earnings from
vacation ownership and residential represents operating income before
depreciation expense.
All references to management and franchise revenues represent
base and incentive fees, franchise fees, amortization of deferred gains
resulting from the sales of hotels subject to long-term management
contracts and termination fees.
Starwood Hotels & Resorts Worldwide, Inc. is one of the
leading hotel and leisure companies in the world with 1,112 properties
in nearly 100 countries and 154,000 employees at its owned and managed
properties. Starwood is a fully integrated owner, operator and
franchisor of hotels, resorts and residences with the following
internationally renowned brands: St. Regis®, The Luxury
Collection®, W®, Westin®,
Le Méridien®, Sheraton®, Four
Points® by Sheraton, Aloft®, and ElementSM.
The Company boasts one of the industry’s leading loyalty programs,
Starwood Preferred Guest (SPG), allowing members to earn and redeem
points for room stays, room upgrades and flights, with no blackout
dates. Starwood also owns Starwood Vacation Ownership, Inc., a premier
provider of world-class vacation experiences through villa-style
resorts and privileged access to Starwood brands. For more information,
including reconciliations of non-GAAP financial measures to GAAP
financial measures, please visit www.starwoodhotels.com or contact Investor
Relations at (203) 351-3500.
Note: This press release contains forward-looking statements
within the meaning of federal securities regulations. Forward-looking
statements are not guarantees of future performance and involve risks
and uncertainties and other factors that may cause actual results to
differ materially from those anticipated at the time the
forward-looking statements are made. Further results, performance and
achievements may be affected by general economic conditions including
the impact of war and terrorist activity, natural disasters, business
and financing conditions (including the condition of credit markets in
the U.S. and internationally), foreign exchange fluctuations,
cyclicality of the real estate (including residential) and the hotel
and vacation ownership businesses, operating risks associated with the
hotel, vacation ownership and residential businesses, relationships
with associates and labor unions, customers and property owners, the
impact of the internet reservation channels, our reliance on
technology, domestic and international political and geopolitical
conditions, competition, governmental and regulatory actions (including
the impact of changes in U.S. and foreign tax laws and their
interpretation), travelers’ fears of exposure to contagious diseases,
risk associated with the level of our indebtedness, risk associated
with potential acquisitions and dispositions and the introduction of
new brand concepts and other risks and uncertainties. These risks and
uncertainties are presented in detail in our filings with the
Securities and Exchange Commission. Future vacation ownership units
indicated in this press release include planned units on land owned by
the Company or by joint ventures in which the Company has an interest
that have received all major governmental land use approvals for the
development of vacation ownership resorts. There can also be no
assurance that such units will in fact be developed and, if developed,
the time period of such development (which may be more than several
years in the future). Some of the projects may require additional
third-party approvals or permits for development and build out and may
also be subject to legal challenges as well as a commitment of capital
by the Company. The actual number of units to be constructed may be
significantly lower than the number of future units indicated. There
can also be no assurance that agreements will be entered into for the
hotels in the Company’s pipeline and, if entered into, the timing of
any agreement and the opening of the related hotel. Although we believe
the expectations reflected in forward-looking statements are based upon
reasonable assumptions, we can give no assurance that our expectations
will be attained or that results will not materially differ. We
undertake no obligation to publicly update or revise any
forward-looking statement, whether as a result of new information,
future events or otherwise.
|
|
|
|
|
|
|
STARWOOD HOTELS & RESORTS
WORLDWIDE, INC.
Unaudited Consolidated
Statements of Income
(In millions, except per share
data)
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
|
|
|
|
Six Months Ended
June 30,
|
2012
|
|
|
2011
|
|
|
%
Variance
|
|
|
|
|
|
2012
|
|
|
2011
|
|
|
%
Variance
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
|
|
|
|
|
|
|
$
|
453
|
|
|
|
$
|
478
|
|
|
|
(5.2
|
)
|
|
|
|
Owned, leased and
consolidated joint venture hotels |
|
$
|
855
|
|
|
|
$
|
888
|
|
|
|
(3.7
|
)
|
|
316
|
|
|
|
|
146
|
|
|
|
n/m
|
|
|
|
|
Vacation
ownership and residential sales and services |
|
|
830
|
|
|
|
|
299
|
|
|
|
n/m
|
|
|
222
|
|
|
|
|
201
|
|
|
|
10.4
|
|
|
|
|
Management fees,
franchise fees and other income |
|
|
423
|
|
|
|
|
378
|
|
|
|
11.9
|
|
|
627
|
|
|
|
|
601
|
|
|
|
4.3
|
|
|
|
|
Other revenues from managed and
franchised
properties (a)
|
|
|
1,225
|
|
|
|
|
1,156
|
|
|
|
6.0
|
|
|
1,618
|
|
|
|
|
1,426
|
|
|
|
13.5
|
|
|
|
|
|
|
|
3,333
|
|
|
|
|
2,721
|
|
|
|
22.5
|
|
|
|
|
|
|
|
|
|
|
|
Costs and
Expenses |
|
|
|
|
|
|
|
|
|
360
|
|
|
|
|
381
|
|
|
|
5.5
|
|
|
|
|
Owned, leased and
consolidated joint venture hotels |
|
|
709
|
|
|
|
|
742
|
|
|
|
4.4
|
|
|
241
|
|
|
|
|
112
|
|
|
|
n/m
|
|
|
|
|
Vacation
ownership and residential |
|
|
634
|
|
|
|
|
223
|
|
|
|
n/m
|
|
|
86
|
|
|
|
|
88
|
|
|
|
2.3
|
|
|
|
|
Selling, general,
administrative and other |
|
|
182
|
|
|
|
|
168
|
|
|
|
(8.3
|
)
|
|
—
|
|
|
|
|
—
|
|
|
|
— |
|
|
|
|
Restructuring, goodwill impairment
and other special
charges (credits), net
|
|
|
(11
|
)
|
|
|
|
—
|
|
|
|
n/m
|
|
|
56
|
|
|
|
|
60
|
|
|
|
6.7
|
|
|
|
|
Depreciation |
|
|
113
|
|
|
|
|
120
|
|
|
|
5.8
|
|
|
6
|
|
|
|
|
7
|
|
|
|
14.3
|
|
|
|
|
Amortization |
|
|
12
|
|
|
|
|
15
|
|
|
|
20.0
|
|
|
627
|
|
|
|
|
601
|
|
|
|
(4.3
|
)
|
|
|
|
Other expenses from managed and
franchised
properties (a)
|
|
|
1,225
|
|
|
|
|
1,156
|
|
|
|
(6.0
|
)
|
|
1,376
|
|
|
|
|
1,249
|
|
|
|
(10.2
|
)
|
|
|
|
|
|
|
2,864
|
|
|
|
|
2,424
|
|
|
|
(18.2
|
)
|
|
242
|
|
|
|
|
177
|
|
|
|
36.7
|
|
|
|
|
Operating income |
|
|
469
|
|
|
|
|
297
|
|
|
|
57.9
|
|
|
5
|
|
|
|
|
7
|
|
|
|
(28.6
|
)
|
|
|
|
Equity (losses) earnings and gains
and (losses) from
unconsolidated ventures, net
|
|
|
15
|
|
|
|
|
11
|
|
|
|
36.4
|
|
|
(61
|
)
|
|
|
|
(52
|
)
|
|
|
(17.3
|
)
|
|
|
|
Interest expense, net of interest
income of $1, $0, $1
and $1
|
|
|
(110
|
)
|
|
|
|
(106
|
)
|
|
|
(3.8
|
)
|
|
(1
|
)
|
|
|
|
2
|
|
|
|
n/m
|
|
|
|
|
Gain
(loss) on asset dispositions and impairments, net |
|
|
(8
|
)
|
|
|
|
(31
|
)
|
|
|
(74.2
|
)
|
|
185
|
|
|
|
|
134
|
|
|
|
38.1
|
|
|
|
|
Income from continuing operations
before taxes and
noncontrolling interests
|
|
|
366
|
|
|
|
|
171
|
|
|
|
n/m
|
|
|
(56
|
)
|
|
|
|
16
|
|
|
|
n/m
|
|
|
|
|
Income
tax benefit (expense) |
|
|
(108
|
)
|
|
|
|
6
|
|
|
|
n/m
|
|
|
129
|
|
|
|
|
150
|
|
|
|
(14.0
|
)
|
|
|
|
Income (loss)
from continuing operations |
|
|
258
|
|
|
|
|
177
|
|
|
|
45.8
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued
Operations: |
|
|
|
|
|
|
|
|
|
|
|
(7
|
)
|
|
|
|
(19
|
)
|
|
|
63.2
|
|
|
|
|
Gain
(loss) on dispositions, net of tax |
|
|
(8
|
)
|
|
|
|
(20
|
)
|
|
|
(60.0
|
)
|
|
122
|
|
|
|
|
131
|
|
|
|
(6.9
|
)
|
|
|
|
Net income (loss)
|
|
|
250
|
|
|
|
|
157
|
|
|
|
59.2
|
|
|
—
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
Net loss
(income) attributable to noncontrolling interests |
|
|
—
|
|
|
|
|
2
|
|
|
|
(100.0
|
)
|
$
|
122
|
|
|
|
$
|
131
|
|
|
|
(6.9
|
)
|
|
|
|
Net
income (loss) attributable to Starwood |
|
$
|
250
|
|
|
|
$
|
159
|
|
|
|
57.2
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
(Losses) Per Share – Basic |
|
|
|
|
|
|
|
|
$
|
0.67
|
|
|
|
$
|
0.79
|
|
|
|
(15.2
|
)
|
|
|
|
Continuing
operations |
|
$
|
1.34
|
|
|
|
$
|
0.95
|
|
|
|
41.1
|
|
|
(0.04
|
)
|
|
|
|
(0.10
|
)
|
|
|
(60.0
|
)
|
|
|
|
Discontinued
operations |
|
|
(0.04
|
)
|
|
|
|
(0.11
|
)
|
|
|
(63.6
|
)
|
$
|
0.63
|
|
|
|
$
|
0.69
|
|
|
|
(8.7
|
)
|
|
|
|
Net
income (loss) |
|
$
|
1.30
|
|
|
|
$
|
0.84
|
|
|
|
54.8
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
(Losses) Per Share – Diluted |
|
|
|
|
|
|
|
|
$
|
0.66
|
|
|
|
$
|
0.77
|
|
|
|
(14.3
|
)
|
|
|
|
Continuing
operations |
|
$
|
1.31
|
|
|
|
$
|
0.92
|
|
|
|
42.4
|
|
|
(0.04
|
)
|
|
|
|
(0.09
|
)
|
|
|
(55.6
|
)
|
|
|
|
Discontinued
operations |
|
|
(0.04
|
)
|
|
|
|
(0.10
|
)
|
|
|
(60.0
|
)
|
$
|
0.62
|
|
|
|
$
|
0.68
|
|
|
|
(8.8
|
)
|
|
|
|
Net
income (loss) |
|
$
|
1.27
|
|
|
|
$
|
0.82
|
|
|
|
54.9
|
|
|
|
|
|
|
|
|
|
|
|
Amounts attributable to
Starwood’s Common
Stockholders
|
|
|
|
|
|
|
|
|
$
|
129
|
|
|
|
$
|
150
|
|
|
|
(14.0
|
)
|
|
|
|
Continuing
operations |
|
$
|
258
|
|
|
|
$
|
179
|
|
|
|
44.1
|
|
|
(7
|
)
|
|
|
|
(19
|
)
|
|
|
(63.2
|
)
|
|
|
|
Discontinued
operations |
|
|
(8
|
)
|
|
|
|
(20
|
)
|
|
|
(60.0
|
)
|
$
|
122
|
|
|
|
$
|
131
|
|
|
|
(6.9
|
)
|
|
|
|
Net
income (loss) |
|
$
|
250
|
|
|
|
$
|
159
|
|
|
|
(57.2
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
195
|
|
|
|
|
189
|
|
|
|
|
|
|
|
Weighted
average number of shares |
|
|
193
|
|
|
|
|
188
|
|
|
|
|
|
198
|
|
|
|
|
195
|
|
|
|
|
|
|
|
Weighted
average number of shares assuming dilution |
|
|
197
|
|
|
|
|
195
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
|
The Company includes in revenues
the reimbursement of costs incurred on behalf of managed hotel property
owners and
franchisees with no added margin and includes in costs and expenses
these reimbursed costs. These costs relate primarily to
payroll costs at managed properties where the Company is the employer.
|
|
|
|
|
n/m = not meaningful
|
|
|
|
|
|
|
STARWOOD
HOTELS & RESORTS WORLDWIDE, INC. |
Consolidated
Balance Sheets |
(In
millions, except share data) |
|
|
|
|
|
|
|
|
|
|
June 30,
2012
|
|
|
December 31,
2011
|
|
|
|
(unaudited)
|
|
|
|
Assets |
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
Cash and cash
equivalents |
|
|
$
|
270
|
|
|
|
$
|
454
|
|
Restricted cash |
|
|
|
155
|
|
|
|
|
232
|
|
Accounts
receivable, net of allowance for doubtful accounts of $48 and $46 |
|
|
|
597
|
|
|
|
|
569
|
|
Inventories |
|
|
|
461
|
|
|
|
|
812
|
|
Securitized vacation ownership
notes receivable, net of allowance for doubtful
accounts of $9 and $10
|
|
|
|
60
|
|
|
|
|
64
|
|
Current deferred
tax asset |
|
|
|
279
|
|
|
|
|
278
|
|
Prepaid
expenses and other |
|
|
|
158
|
|
|
|
|
125
|
|
Total current
assets |
|
|
|
1,980
|
|
|
|
|
2,534
|
|
Investments |
|
|
|
267
|
|
|
|
|
259
|
|
Plant, property
and equipment, net |
|
|
|
3,187
|
|
|
|
|
3,175
|
|
Assets held for
sale, net |
|
|
|
117
|
|
|
|
|
127
|
|
Goodwill and
intangible assets, net |
|
|
|
2,027
|
|
|
|
|
2,025
|
|
Deferred tax
assets |
|
|
|
613
|
|
|
|
|
639
|
|
Other assets (a)
|
|
|
|
417
|
|
|
|
|
355
|
|
Securitized
vacation ownership notes receivable |
|
|
|
381
|
|
|
|
|
446
|
|
Total
assets |
|
|
$
|
8,989
|
|
|
|
$
|
9,560
|
|
Liabilities
and Stockholders’ Equity |
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
|
Short-term
borrowings and current maturities of long-term debt (b) |
|
|
$
|
—
|
|
|
|
$
|
3
|
|
Accounts payable |
|
|
|
104
|
|
|
|
|
144
|
|
Current
maturities of long-term securitized vacation ownership debt |
|
|
|
117
|
|
|
|
|
130
|
|
Accrued expenses |
|
|
|
1,117
|
|
|
|
|
1,177
|
|
Accrued salaries,
wages and benefits |
|
|
|
336
|
|
|
|
|
375
|
|
Accrued
taxes and other |
|
|
|
149
|
|
|
|
|
163
|
|
Total current
liabilities |
|
|
|
1,823
|
|
|
|
|
1,992
|
|
Long-term debt (b)
|
|
|
|
1,652
|
|
|
|
|
2,194
|
|
Long-term
securitized vacation ownership debt |
|
|
|
332
|
|
|
|
|
402
|
|
Deferred income
taxes |
|
|
|
45
|
|
|
|
|
46
|
|
Other
liabilities |
|
|
|
1,902
|
|
|
|
|
1,971
|
|
Total liabilities
|
|
|
|
5,754
|
|
|
|
|
6,605
|
|
Commitments and
contingencies |
|
|
|
|
|
|
Stockholders’
equity: |
|
|
|
|
|
|
Common stock; $0.01 par value;
authorized 1,000,000,000 shares;
outstanding 197,267,943 and 195,913,400 shares at June 30, 2012 and
December 31, 2011, respectively
|
|
|
|
2
|
|
|
|
|
2
|
|
Additional
paid-in capital |
|
|
|
999
|
|
|
|
|
963
|
|
Accumulated other
comprehensive loss |
|
|
|
(358
|
)
|
|
|
|
(348
|
)
|
Retained
earnings |
|
|
|
2,587
|
|
|
|
|
2,337
|
|
Total Starwood
stockholders’ equity |
|
|
|
3,230
|
|
|
|
|
2,954
|
|
Noncontrolling
interest |
|
|
|
5
|
|
|
|
|
1
|
|
Total
stockholders’ equity |
|
|
|
3,235
|
|
|
|
|
2,955
|
|
Total
liabilities and stockholders’ equity |
|
|
$
|
8,989
|
|
|
|
$
|
9,560
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
|
Includes restricted cash of $3
million and $2 million at June 30, 2012 and December 31, 2011,
respectively.
|
|
|
|
|
|
(b)
|
|
Excludes Starwood’s share of
unconsolidated joint venture debt aggregating approximately $418
million and $432 million at
June 30, 2012 and December 31, 2011, respectively.
|
|
|
|
|
|
|
|
|
STARWOOD HOTELS & RESORTS
WORLDWIDE, INC.
Non-GAAP to GAAP
Reconciliations – Historical Data
(In millions)
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
|
|
|
Six Months Ended
June 30,
|
2012
|
|
|
2011
|
|
|
%
Variance
|
|
|
|
|
2012
|
|
|
2011
|
|
|
%
Variance
|
|
|
|
|
|
|
|
|
|
Reconciliation of Net Income
(Loss) to EBITDA and
Adjusted EBITDA
|
|
|
|
|
|
|
|
|
$
|
122
|
|
|
$
|
131
|
|
|
|
(6.9
|
)
|
|
|
Net income (loss)
|
|
$
|
250
|
|
|
|
$
|
159
|
|
|
|
57.2
|
|
|
67
|
|
|
|
54
|
|
|
|
24.1
|
|
|
|
Interest expense (a)
|
|
|
116
|
|
|
|
|
113
|
|
|
|
2.7
|
|
|
54
|
|
|
|
(15
|
)
|
|
|
n/m
|
|
|
|
Income tax
(benefit) expense (b) |
|
|
107
|
|
|
|
|
(4
|
)
|
|
|
n/m
|
|
|
63
|
|
|
|
67
|
|
|
|
(6.0
|
)
|
|
|
Depreciation (c)
|
|
|
127
|
|
|
|
|
135
|
|
|
|
(5.9
|
)
|
|
7
|
|
|
|
9
|
|
|
|
(22.2
|
)
|
|
|
Amortization
(d) |
|
|
14
|
|
|
|
|
18
|
|
|
|
(22.2
|
)
|
|
313
|
|
|
|
246
|
|
|
|
27.2
|
|
|
|
EBITDA |
|
|
614
|
|
|
|
|
421
|
|
|
|
45.8
|
|
|
1
|
|
|
|
(2
|
)
|
|
|
n/m
|
|
|
|
(Gain)
loss on asset dispositions and impairments, net |
|
|
8
|
|
|
|
|
31
|
|
|
|
(74.2
|
)
|
|
9
|
|
|
|
18
|
|
|
|
(50.0
|
)
|
|
|
Discontinued
operations (gain) loss on dispositions |
|
|
9
|
|
|
|
|
18
|
|
|
|
(50.0
|
)
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
Restructuring, goodwill impairment
and other special
charges (credits), net
|
|
|
(11
|
)
|
|
|
|
—
|
|
|
|
n/m
|
|
$
|
323
|
|
|
$
|
262
|
|
|
|
23.3
|
|
|
|
Adjusted
EBITDA |
|
$
|
620
|
|
|
|
$
|
470
|
|
|
|
31.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
|
Includes $5 million and $2 million
of Starwood’s share of interest expense of unconsolidated joint
ventures for the three months ended June 30,
2012 and 2011, respectively, and $5 million and $6 million for the six
months ended June 30, 2012 and 2011, respectively.
|
|
|
|
(b)
|
|
Includes $(2) million and $1
million of tax expense (benefit) recorded in discontinued operations
for the three months ended June 30, 2012 and
2011, respectively, and $(1) million and $2 million for the six months
ended June 30, 2012 and 2011, respectively.
|
|
|
|
(c)
|
|
Includes $7 million of Starwood’s
share of depreciation expense of unconsolidated joint ventures for each
of the three months ended June 30,
2012 and 2011, respectively, and $14 million and $15 million for the
six months ended June 30, 2012 and 2011, respectively.
|
|
|
|
(d)
|
|
Includes $1 million and $2 million
of Starwood’s share of amortization expense of unconsolidated joint
ventures for the three months ended June
30, 2012 and 2011, respectively, and $2 million and $3 million for the
six months ended June 30, 2012 and 2011, respectively.
|
|
|
|
|
|
|
Non-GAAP to GAAP
Reconciliations – Branded Same-Store Owned Hotels Worldwide
(In millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
$ Change
|
|
% Variance
|
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
increase/(decrease) (GAAP) |
|
|
|
|
|
|
|
|
|
|
|
$
|
(5
|
)
|
|
(1.4
|
)%
|
Impact of
changes in foreign exchange rates |
|
|
|
|
|
|
|
|
|
|
|
|
13
|
|
|
3.4
|
%
|
Revenue
increase/(decrease) in constant dollars |
|
|
|
|
|
|
|
|
|
|
|
$
|
8
|
|
|
2.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expense
increase/(decrease) (GAAP) |
|
|
|
|
|
|
|
|
|
|
|
$
|
(10
|
)
|
|
(3.3
|
)%
|
Impact of
changes in foreign exchange rates |
|
|
|
|
|
|
|
|
|
|
|
|
10
|
|
|
3.2
|
%
|
Expense
increase/(decrease) in constant dollars |
|
|
|
|
|
|
|
|
|
|
|
$
|
—
|
|
|
(0.1
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP to GAAP Reconciliation
–
Earnings from Vacation
Ownership and Residential Business
(In millions)
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
|
2012
|
|
2011
|
|
$
Variance
|
|
2012
|
|
2011
|
|
$
Variance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings from
vacation ownership and residential |
|
$
|
75
|
|
|
$
|
34
|
|
|
$
|
41
|
|
|
$
|
196
|
|
|
$
|
76
|
|
|
$
|
120
|
|
Depreciation
expense |
|
|
(4
|
)
|
|
|
(5
|
)
|
|
|
1
|
|
|
|
(9
|
)
|
|
|
(12
|
)
|
|
|
3
|
|
Operating
income from vacation ownership and residential |
|
$
|
71
|
|
|
$
|
29
|
|
|
$
|
42
|
|
|
$
|
187
|
|
|
$
|
64
|
|
|
$
|
123
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP to GAAP Reconciliation
–
Earnings from Bal Harbour
(In millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2012
|
|
2011
|
|
$
Variance
|
|
2012
|
|
|
2011
|
|
$
Variance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings from Bal
Harbour |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
35
|
|
|
|
$
|
(3
|
)
|
|
$
|
38
|
|
|
$
|
113
|
|
|
$
|
(5
|
)
|
|
$
|
118
|
|
Depreciation
expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Operating
income from Bal Harbour |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
35
|
|
|
|
$
|
(3
|
)
|
|
$
|
38
|
|
|
$
|
113
|
|
|
$
|
(5
|
)
|
|
$
|
118
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
STARWOOD
HOTELS & RESORTS WORLDWIDE, INC. |
|
Non-GAAP
to GAAP Reconciliations – Future Performance |
|
(In
millions, except per share data) |
|
|
|
Low
Case |
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30, 2012
|
|
|
|
|
|
Year Ended
December 31, 2012
|
|
|
|
|
|
|
|
|
|
$
|
99
|
|
|
|
|
Net income |
|
$
|
479
|
|
|
|
45
|
|
|
|
|
Interest expense |
|
|
192
|
|
|
|
45
|
|
|
|
|
Income tax expense(a)
|
|
|
213
|
|
|
|
71
|
|
|
|
|
Depreciation
and amortization |
|
|
285
|
|
|
|
260
|
|
|
|
|
EBITDA |
|
|
1,169
|
|
|
|
—
|
|
|
|
|
Restructuring, goodwill impairment
and other special charges
(credits), net
|
|
|
(11
|
)
|
|
|
—
|
|
|
|
|
(Gain) loss on
asset dispositions and impairments, net |
|
|
8
|
|
|
|
—
|
|
|
|
|
Debt
extinguishment |
|
|
15
|
|
|
|
—
|
|
|
|
|
Discontinued
operations (gain) loss on dispositions |
|
|
9
|
|
|
$
|
260
|
|
|
|
|
Adjusted
EBITDA |
|
$
|
1,190
|
|
|
Three Months Ended
September 30, 2012
|
|
|
|
|
|
|
|
|
|
|
Year Ended
December 31, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
99
|
|
|
|
|
Income
from continuing operations before special items |
|
|
|
|
|
|
$
|
491
|
|
|
$
|
0.50
|
|
|
|
|
EPS before special items
|
|
|
|
|
|
|
$
|
2.49
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Special Items
|
|
|
|
|
|
|
|
|
|
—
|
|
|
|
|
Restructuring and
other special credits |
|
|
|
|
|
|
|
11
|
|
|
|
—
|
|
|
|
|
Gain
(loss) on asset dispositions and impairments, net |
|
|
|
|
|
|
|
(8
|
)
|
|
|
—
|
|
|
|
|
Debt
extinguishment |
|
|
|
|
|
|
|
(15
|
)
|
|
|
—
|
|
|
|
|
Total special
items – pre-tax |
|
|
|
|
|
|
|
(12
|
)
|
|
|
—
|
|
|
|
|
Income tax benefit associated with
special items
|
|
|
|
|
|
|
|
8
|
|
|
|
—
|
|
|
|
|
Total
special items – after-tax |
|
|
|
|
|
|
|
(4
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
99
|
|
|
|
|
Income
from continuing operations |
|
|
|
|
|
|
$
|
487
|
|
|
$
|
0.50
|
|
|
|
|
EPS
including special items |
|
|
|
|
|
|
$
|
2.47
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
High Case
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30, 2012
|
|
|
|
|
|
Year Ended
December 31, 2012
|
|
|
|
|
|
|
|
|
|
$
|
106
|
|
|
|
|
Net income |
|
$
|
493
|
|
|
|
45
|
|
|
|
|
Interest expense |
|
|
192
|
|
|
|
48
|
|
|
|
|
Income tax expense(a)
|
|
|
219
|
|
|
|
71
|
|
|
|
|
Depreciation
and amortization |
|
|
285
|
|
|
|
270
|
|
|
|
|
EBITDA |
|
|
1,189
|
|
|
|
—
|
|
|
|
|
Restructuring, goodwill impairment
and other special charges
(credits), net
|
|
|
(11
|
)
|
|
|
—
|
|
|
|
|
(Gain) loss on asset dispositions
and impairments, net
|
|
|
8
|
|
|
|
—
|
|
|
|
|
Debt extinguishment
|
|
|
15
|
|
|
|
—
|
|
|
|
|
Discontinued
operations (gain) loss on dispositions |
|
|
9
|
|
|
$
|
270
|
|
|
|
|
Adjusted
EBITDA |
|
$
|
1,210
|
|
|
Three Months Ended
September 30, 2012
|
|
|
|
|
|
|
|
|
|
|
Year Ended
December 31, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
106
|
|
|
|
|
Income
from continuing operations before special items |
|
|
|
|
|
|
$
|
505
|
|
|
$
|
0.54
|
|
|
|
|
EPS before special items
|
|
|
|
|
|
|
$
|
2.56
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Special Items
|
|
|
|
|
|
|
|
|
|
—
|
|
|
|
|
Restructuring and
other special credits |
|
|
|
|
|
|
|
11
|
|
|
|
—
|
|
|
|
|
Gain
(loss) on asset dispositions and impairments, net |
|
|
|
|
|
|
|
(8
|
)
|
|
|
—
|
|
|
|
|
Debt
extinguishment |
|
|
|
|
|
|
|
(15
|
)
|
|
|
—
|
|
|
|
|
Total special
items – pre-tax |
|
|
|
|
|
|
|
(12
|
)
|
|
|
—
|
|
|
|
|
Income
tax benefit associated with special items |
|
|
|
|
|
|
|
8
|
|
|
|
—
|
|
|
|
|
Total
special items – after-tax |
|
|
|
|
|
|
|
(4
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
106
|
|
|
|
|
Income
from continuing operations |
|
|
|
|
|
|
$
|
501
|
|
|
$
|
0.54
|
|
|
|
|
EPS
including special items |
|
|
|
|
|
|
$
|
2.54
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
|
The full year amounts include a $1
million tax benefit recorded in discontinued operations.
|
|
|
|
|
|
|
STARWOOD
HOTELS & RESORTS WORLDWIDE, INC. |
Non-GAAP
to GAAP Reconciliations – |
Future
Earnings from Vacation Ownership and Residential Business |
Excluding
Bal Harbour |
(In
millions) |
|
Low
Case |
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
|
|
2012
|
|
2011
|
|
$
Variance
|
|
|
|
|
|
|
|
|
Earnings from
vacation ownership and residential |
|
|
$
|
33
|
|
|
$
|
33
|
|
|
$
|
—
|
|
Depreciation
expense |
|
|
|
(5
|
)
|
|
|
(5
|
)
|
|
|
—
|
|
Operating income from vacation
ownership and residential
|
|
|
$
|
28
|
|
|
$
|
28
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
September 30,
2012
|
|
|
|
|
|
|
|
Year Ended
December 31,
2012
|
|
|
|
|
|
|
|
|
|
$
|
33
|
|
|
|
|
Earnings from
vacation ownership and residential |
|
|
|
$
|
150
|
|
|
(5
|
)
|
|
|
|
Depreciation
expense |
|
|
|
|
(20
|
)
|
$
|
28
|
|
|
|
|
Operating
income from vacation ownership and residential |
|
|
|
$
|
130
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
High Case
|
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
|
|
2012
|
|
2011
|
|
$
Variance
|
|
|
|
|
|
|
|
|
Earnings from
vacation ownership and residential |
|
|
$
|
38
|
|
|
$
|
33
|
|
|
$
|
5
|
|
Depreciation
expense |
|
|
|
(5
|
)
|
|
|
(5
|
)
|
|
|
—
|
|
Operating
income from vacation ownership and residential |
|
|
$
|
33
|
|
|
$
|
28
|
|
|
$
|
5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
September 30,
2012
|
|
|
|
|
|
|
|
Year Ended
December 31,
2012
|
|
|
|
|
|
|
|
|
|
$
|
38
|
|
|
|
|
Earnings from
vacation ownership and residential |
|
|
|
$
|
155
|
|
|
(5
|
)
|
|
|
|
Depreciation
expense |
|
|
|
|
(20
|
)
|
$
|
33
|
|
|
|
|
Operating
income from vacation ownership and residential |
|
|
|
$
|
135
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
STARWOOD HOTELS & RESORTS
WORLDWIDE, INC.
Non-GAAP to GAAP
Reconciliations –
Future Earnings from Bal Harbour
(In millions)
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
|
2012
|
|
|
2011
|
|
$
Variance
|
|
|
|
|
|
|
|
Earnings from Bal
Harbour |
|
$
|
5
|
|
|
$
|
(2
|
)
|
|
$
|
7
|
|
Depreciation
expense |
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Operating income from Bal Harbour
|
|
$
|
5
|
|
|
$
|
(2
|
)
|
|
$
|
7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
December 31, 2012
|
|
|
|
|
|
|
|
|
|
|
Earnings from Bal
Harbour |
|
|
|
|
|
|
|
|
$
|
120
|
|
Depreciation
expense |
|
|
|
|
|
|
|
|
|
—
|
|
Operating
income from Bal Harbour |
|
|
|
|
|
|
|
|
$
|
120
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
STARWOOD HOTELS & RESORTS
WORLDWIDE, INC.
Non-GAAP to GAAP
Reconciliations – Same Store Owned Hotel Revenue and Expenses
(In millions)
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
|
|
|
Six Months Ended
June 30,
|
2012
|
|
|
2011
|
|
|
%
Variance
|
|
|
Same-Store
Owned Hotels
Worldwide
|
|
2012
|
|
|
2011
|
|
|
%
Variance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
|
|
|
|
|
$
|
399
|
|
|
$
|
402
|
|
|
(0.7
|
)
|
|
|
Same-Store Owned
Hotels (a) |
|
$
|
739
|
|
|
$
|
728
|
|
|
1.5
|
|
|
—
|
|
|
|
26
|
|
|
(100.0
|
)
|
|
|
Hotels Sold or
Closed in 2012 and 2011 |
|
|
2
|
|
|
|
57
|
|
|
(96.5
|
)
|
|
47
|
|
|
|
42
|
|
|
11.9
|
|
|
|
Hotels Without
Comparable Results |
|
|
100
|
|
|
|
89
|
|
|
12.4
|
|
|
7
|
|
|
|
8
|
|
|
(12.5
|
)
|
|
|
Other
ancillary hotel operations |
|
|
14
|
|
|
|
14
|
|
|
—
|
|
$
|
453
|
|
|
$
|
478
|
|
|
(5.2
|
)
|
|
|
Total Owned, Leased and
Consolidated Joint Venture Hotels
Revenue
|
|
$
|
855
|
|
|
$
|
888
|
|
|
(3.7
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and
Expenses |
|
|
|
|
|
|
$
|
306
|
|
|
$
|
315
|
|
|
2.9
|
|
|
|
Same-Store Owned
Hotels (a) |
|
$
|
590
|
|
|
$
|
592
|
|
|
0.3
|
|
|
—
|
|
|
|
22
|
|
|
100.0
|
|
|
|
Hotels Sold or
Closed in 2012 and 2011 |
|
|
2
|
|
|
|
52
|
|
|
96.2
|
|
|
47
|
|
|
|
37
|
|
|
(27.0
|
)
|
|
|
Hotels Without
Comparable Results |
|
|
104
|
|
|
|
84
|
|
|
(23.8
|
)
|
|
7
|
|
|
|
7
|
|
|
—
|
|
|
|
Other
ancillary hotel operations |
|
|
13
|
|
|
|
14
|
|
|
7.1
|
|
$
|
360
|
|
|
$
|
381
|
|
|
5.5
|
|
|
|
Total Owned, Leased and
Consolidated Joint Venture Hotels Costs
and Expenses
|
|
$
|
709
|
|
|
$
|
742
|
|
|
4.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
|
|
Six Months Ended
June 30,
|
2012 |
|
|
2011 |
|
|
%
Variance
|
|
|
Same-Store
Owned Hotels
North America
|
|
2012 |
|
|
2011 |
|
|
%
Variance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
|
|
|
|
$
|
222
|
|
|
$
|
221
|
|
|
0.5
|
|
|
|
Same-Store Owned
Hotels (a) |
|
$
|
429
|
|
|
$
|
421
|
|
|
1.9
|
|
|
—
|
|
|
|
21
|
|
|
(100.0
|
)
|
|
|
Hotels Sold or
Closed in 2012 and 2011 |
|
|
2
|
|
|
|
48
|
|
|
(95.8
|
)
|
|
35
|
|
|
|
24
|
|
|
45.8
|
|
|
|
Hotels Without
Comparable Results |
|
|
69
|
|
|
|
51
|
|
|
35.3
|
|
|
—
|
|
|
|
—
|
|
|
—
|
|
|
|
Other
ancillary hotel operations |
|
|
—
|
|
|
|
—
|
|
|
—
|
|
$
|
257
|
|
|
$
|
266
|
|
|
(3.4
|
)
|
|
|
Total Owned, Leased and
Consolidated Joint Venture Hotels
Revenue
|
|
$
|
500
|
|
|
$
|
520
|
|
|
(3.8
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and
Expenses |
|
|
|
|
|
|
$
|
176
|
|
|
$
|
178
|
|
|
1.1
|
|
|
|
Same-Store Owned
Hotels (a) |
|
$
|
351
|
|
|
$
|
349
|
|
|
(0.6
|
)
|
|
—
|
|
|
|
17
|
|
|
100.0
|
|
|
|
Hotels Sold or
Closed in 2012 and 2011 |
|
|
2
|
|
|
|
43
|
|
|
95.3
|
|
|
34
|
|
|
|
24
|
|
|
(41.7
|
)
|
|
|
Hotels Without
Comparable Results |
|
|
70
|
|
|
|
48
|
|
|
(45.8
|
)
|
|
1
|
|
|
|
—
|
|
|
n/m
|
|
|
|
Other
ancillary hotel operations |
|
|
1
|
|
|
|
—
|
|
|
n/m
|
|
$
|
211
|
|
|
$
|
219
|
|
|
3.7
|
|
|
|
Total Owned, Leased and
Consolidated Joint Venture Hotels Costs
and Expenses
|
|
$
|
424
|
|
|
$
|
440
|
|
|
3.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
|
|
Six Months Ended
June 30,
|
2012
|
|
2011
|
|
%
Variance
|
|
|
Same-Store
Owned Hotels
International
|
|
2012
|
|
|
2011
|
|
|
%
Variance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
|
|
|
|
|
$
|
177
|
|
|
$
|
181
|
|
|
(2.2
|
)
|
|
|
Same-Store Owned
Hotels (a) |
|
$
|
310
|
|
|
$
|
307
|
|
|
1.0
|
|
|
—
|
|
|
|
5
|
|
|
(100.0
|
)
|
|
|
Hotels Sold or Closed in 2012 and
2011
|
|
|
—
|
|
|
|
9
|
|
|
(100.0
|
)
|
|
12
|
|
|
|
18
|
|
|
(33.3
|
)
|
|
|
Hotels Without
Comparable Results |
|
|
31
|
|
|
|
38
|
|
|
(18.4
|
)
|
|
7
|
|
|
|
8
|
|
|
(12.5
|
)
|
|
|
Other
ancillary hotel operations |
|
|
14
|
|
|
|
14
|
|
|
—
|
|
$
|
196
|
|
|
$
|
212
|
|
|
(7.5
|
)
|
|
|
Total Owned, Leased and
Consolidated Joint Venture Hotels
Revenue
|
|
$
|
355
|
|
|
$
|
368
|
|
|
(3.5
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and
Expenses |
|
|
|
|
|
|
$
|
130
|
|
|
$
|
137
|
|
|
5.1
|
|
|
|
Same-Store Owned
Hotels (a) |
|
$
|
239
|
|
|
$
|
243
|
|
|
1.6
|
|
|
—
|
|
|
|
5
|
|
|
100.0
|
|
|
|
Hotels Sold or
Closed in 2012 and 2011 |
|
|
—
|
|
|
|
9
|
|
|
100.0
|
|
|
13
|
|
|
|
13
|
|
|
—
|
|
|
|
Hotels Without
Comparable Results |
|
|
34
|
|
|
|
36
|
|
|
5.6
|
|
|
6
|
|
|
|
7
|
|
|
14.3
|
|
|
|
Other
ancillary hotel operations |
|
|
12
|
|
|
|
14
|
|
|
14.3
|
|
$
|
149
|
|
|
$
|
162
|
|
|
8.0
|
|
|
|
Total Owned, Leased and
Consolidated Joint Venture Hotels Costs
and Expenses
|
|
$
|
285
|
|
|
$
|
302
|
|
|
5.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
|
Same-Store Owned Hotel results
exclude five hotels sold and 11 hotels without comparable results for
the three months
|
|
|
ended June 30, 2012 and five
hotels sold and 12 hotels without comparable results for the six months
ended June 30, 2012.
|
n/m = not meaningful
|
|
STARWOOD
HOTELS & RESORTS WORLDWIDE, INC. |
Systemwide(1)
Statistics - Same Store |
For
the Three Months Ended June 30, |
UNAUDITED
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Systemwide - Worldwide |
|
|
Systemwide - North America |
|
|
Systemwide - International |
|
|
|
|
|
2012
|
|
|
2011
|
|
|
Variance
|
|
|
2012
|
|
|
2011
|
|
|
Variance
|
|
|
2012
|
|
|
2011
|
|
|
Variance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL
HOTELS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REVPAR
($) |
|
|
|
121.82
|
|
|
|
116.86
|
|
|
|
4.2
|
%
|
|
|
123.66
|
|
|
|
115.80
|
|
|
|
6.8
|
%
|
|
|
119.37
|
|
|
|
118.28
|
|
|
|
0.9
|
%
|
ADR
($) |
|
|
|
170.41
|
|
|
|
169.47
|
|
|
|
0.6
|
%
|
|
|
163.32
|
|
|
|
157.28
|
|
|
|
3.8
|
%
|
|
|
181.27
|
|
|
|
188.52
|
|
|
|
(3.8
|
%)
|
Occupancy
(%) |
|
|
|
71.5% |
|
|
69.0% |
|
|
2.5
|
|
|
|
75.7% |
|
|
73.6% |
|
|
2.1
|
|
|
|
65.8% |
|
|
62.7% |
|
|
3.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SHERATON
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REVPAR
($) |
|
|
|
101.37
|
|
|
|
97.11
|
|
|
|
4.4
|
%
|
|
|
103.58
|
|
|
|
97.53
|
|
|
|
6.2
|
%
|
|
|
98.61
|
|
|
|
96.57
|
|
|
|
2.1
|
%
|
ADR
($) |
|
|
|
145.48
|
|
|
|
144.13
|
|
|
|
0.9
|
%
|
|
|
138.79
|
|
|
|
134.97
|
|
|
|
2.8
|
%
|
|
|
155.29
|
|
|
|
157.60
|
|
|
|
(1.5
|
%)
|
Occupancy
(%) |
|
|
|
69.7% |
|
|
67.4% |
|
|
2.3
|
|
|
|
74.6% |
|
|
72.3% |
|
|
2.3
|
|
|
|
63.5% |
|
|
61.3% |
|
|
2.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WESTIN
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REVPAR
($) |
|
|
|
138.06
|
|
|
|
131.22
|
|
|
|
5.2
|
%
|
|
|
135.42
|
|
|
|
127.70
|
|
|
|
6.0
|
%
|
|
|
144.81
|
|
|
|
140.18
|
|
|
|
3.3
|
%
|
ADR
($) |
|
|
|
184.38
|
|
|
|
180.64
|
|
|
|
2.1
|
%
|
|
|
176.62
|
|
|
|
169.28
|
|
|
|
4.3
|
%
|
|
|
205.98
|
|
|
|
213.86
|
|
|
|
(3.7
|
%)
|
Occupancy
(%) |
|
|
|
74.9% |
|
|
72.6% |
|
|
2.3
|
|
|
|
76.7% |
|
|
75.4% |
|
|
1.3
|
|
|
|
70.3% |
|
|
65.5% |
|
|
4.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ST. REGIS/LUXURY COLLECTION |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REVPAR ($)
|
|
|
|
196.01
|
|
|
|
197.04
|
|
|
|
(0.5
|
%)
|
|
|
233.40
|
|
|
|
207.93
|
|
|
|
12.2
|
%
|
|
|
175.92
|
|
|
|
191.15
|
|
|
|
(8.0
|
%)
|
ADR
($) |
|
|
|
301.86
|
|
|
|
307.52
|
|
|
|
(1.8
|
%)
|
|
|
314.11
|
|
|
|
292.84
|
|
|
|
7.3
|
%
|
|
|
293.69
|
|
|
|
316.87
|
|
|
|
(7.3
|
%)
|
Occupancy
(%) |
|
|
|
64.9% |
|
|
64.1% |
|
|
0.8
|
|
|
|
74.3% |
|
|
71.0% |
|
|
3.3
|
|
|
|
59.9% |
|
|
60.3% |
|
|
(0.4
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LE
MERIDIEN |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REVPAR
($) |
|
|
|
135.66
|
|
|
|
134.55
|
|
|
|
0.8
|
%
|
|
|
226.93
|
|
|
|
216.22
|
|
|
|
5.0
|
%
|
|
|
125.63
|
|
|
|
125.55
|
|
|
|
0.1
|
%
|
ADR
($) |
|
|
|
188.11
|
|
|
|
199.45
|
|
|
|
(5.7
|
%)
|
|
|
259.99
|
|
|
|
246.23
|
|
|
|
5.6
|
%
|
|
|
178.32
|
|
|
|
192.52
|
|
|
|
(7.4
|
%)
|
Occupancy
(%) |
|
|
|
72.1% |
|
|
67.5% |
|
|
4.6
|
|
|
|
87.3% |
|
|
87.8% |
|
|
(0.5
|
)
|
|
|
70.5% |
|
|
65.2% |
|
|
5.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REVPAR
($) |
|
|
|
225.40
|
|
|
|
210.02
|
|
|
|
7.3
|
%
|
|
|
214.87
|
|
|
|
203.07
|
|
|
|
5.8
|
%
|
|
|
254.47
|
|
|
|
229.22
|
|
|
|
11.0
|
%
|
ADR
($) |
|
|
|
282.33
|
|
|
|
273.36
|
|
|
|
3.3
|
%
|
|
|
264.98
|
|
|
|
255.69
|
|
|
|
3.6
|
%
|
|
|
333.15
|
|
|
|
329.06
|
|
|
|
1.2
|
%
|
Occupancy
(%) |
|
|
|
79.8% |
|
|
76.8% |
|
|
3.0
|
|
|
|
81.1% |
|
|
79.4% |
|
|
1.7
|
|
|
|
76.4% |
|
|
69.7% |
|
|
6.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FOUR
POINTS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REVPAR
($) |
|
|
|
81.38
|
|
|
|
77.30
|
|
|
|
5.3
|
%
|
|
|
83.30
|
|
|
|
77.44
|
|
|
|
7.6
|
%
|
|
|
78.45
|
|
|
|
77.08
|
|
|
|
1.8
|
%
|
ADR
($) |
|
|
|
115.68
|
|
|
|
114.14
|
|
|
|
1.3
|
%
|
|
|
113.24
|
|
|
|
109.16
|
|
|
|
3.7
|
%
|
|
|
119.88
|
|
|
|
122.88
|
|
|
|
(2.4
|
%)
|
Occupancy
(%) |
|
|
|
70.4% |
|
|
67.7% |
|
|
2.7
|
|
|
|
73.6% |
|
|
70.9% |
|
|
2.7
|
|
|
|
65.4% |
|
|
62.7% |
|
|
2.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ALOFT |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REVPAR
($) |
|
|
|
77.24
|
|
|
|
71.03
|
|
|
|
8.7
|
%
|
|
|
81.71
|
|
|
|
74.75
|
|
|
|
9.3
|
%
|
|
|
|
|
|
|
|
|
|
ADR
($) |
|
|
|
105.15
|
|
|
|
103.89
|
|
|
|
1.2
|
%
|
|
|
108.71
|
|
|
|
104.54
|
|
|
|
4.0
|
%
|
|
|
|
|
|
|
|
|
|
Occupancy
(%) |
|
|
|
73.5% |
|
|
68.4% |
|
|
5.1
|
|
|
|
75.2% |
|
|
71.5% |
|
|
3.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes same store owned,
leased, managed, and franchised hotels
|
|
|
|
|
STARWOOD
HOTELS & RESORTS WORLDWIDE, INC. |
Worldwide
Hotel Results - Same Store |
For
the Three Months Ended June 30, |
UNAUDITED
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Systemwide (1)
|
|
|
Company-Operated (2)
|
|
|
|
|
|
2012
|
|
|
2011
|
|
|
Variance
|
|
|
2012
|
|
|
2011
|
|
|
Variance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL
WORLDWIDE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REVPAR ($) |
|
|
|
121.82
|
|
|
|
116.86
|
|
|
|
4.2
|
%
|
|
|
136.21
|
|
|
|
131.11
|
|
|
|
3.9
|
%
|
|
ADR ($) |
|
|
|
170.41
|
|
|
|
169.47
|
|
|
|
0.6
|
%
|
|
|
192.00
|
|
|
|
191.60
|
|
|
|
0.2
|
%
|
|
Occupancy (%) |
|
|
|
71.5%
|
|
|
69.0%
|
|
|
2.5
|
|
|
|
70.9%
|
|
|
68.4%
|
|
|
2.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NORTH
AMERICA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REVPAR ($) |
|
|
|
123.66
|
|
|
|
115.80
|
|
|
|
6.8
|
%
|
|
|
152.50
|
|
|
|
143.57
|
|
|
|
6.2
|
%
|
|
ADR ($) |
|
|
|
163.32
|
|
|
|
157.28
|
|
|
|
3.8
|
%
|
|
|
197.39
|
|
|
|
189.90
|
|
|
|
3.9
|
%
|
|
Occupancy (%) |
|
|
|
75.7%
|
|
|
73.6%
|
|
|
2.1
|
|
|
|
77.3%
|
|
|
75.6%
|
|
|
1.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EUROPE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REVPAR ($) |
|
|
|
157.54
|
|
|
|
171.20
|
|
|
|
(8.0
|
%)
|
|
|
170.56
|
|
|
|
183.76
|
|
|
|
(7.2
|
%)
|
|
ADR ($) |
|
|
|
225.89
|
|
|
|
243.00
|
|
|
|
(7.0
|
%)
|
|
|
240.02
|
|
|
|
256.27
|
|
|
|
(6.3
|
%)
|
|
Occupancy (%) |
|
|
|
69.7%
|
|
|
70.5%
|
|
|
(0.8
|
)
|
|
|
71.1%
|
|
|
71.7%
|
|
|
(0.6
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AFRICA
& MIDDLE EAST |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REVPAR ($) |
|
|
|
110.30
|
|
|
|
101.63
|
|
|
|
8.5
|
%
|
|
|
110.12
|
|
|
|
102.01
|
|
|
|
8.0
|
%
|
|
ADR ($) |
|
|
|
168.65
|
|
|
|
176.54
|
|
|
|
(4.5
|
%)
|
|
|
169.32
|
|
|
|
178.29
|
|
|
|
(5.0
|
%)
|
|
Occupancy (%) |
|
|
|
65.4%
|
|
|
57.6%
|
|
|
7.8
|
|
|
|
65.0%
|
|
|
57.2%
|
|
|
7.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASIA
PACIFIC |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REVPAR ($) |
|
|
|
103.59
|
|
|
|
96.60
|
|
|
|
7.2
|
%
|
|
|
105.33
|
|
|
|
97.08
|
|
|
|
8.5
|
%
|
|
ADR ($) |
|
|
|
160.78
|
|
|
|
160.03
|
|
|
|
0.5
|
%
|
|
|
161.86
|
|
|
|
159.10
|
|
|
|
1.7
|
%
|
|
Occupancy (%) |
|
|
|
64.4%
|
|
|
60.4%
|
|
|
4.0
|
|
|
|
65.1%
|
|
|
61.0%
|
|
|
4.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LATIN
AMERICA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REVPAR ($) |
|
|
|
96.36
|
|
|
|
90.79
|
|
|
|
6.1
|
%
|
|
|
103.09
|
|
|
|
93.80
|
|
|
|
9.9
|
%
|
|
ADR ($) |
|
|
|
155.51
|
|
|
|
153.82
|
|
|
|
1.1
|
%
|
|
|
171.49
|
|
|
|
159.45
|
|
|
|
7.6
|
%
|
|
Occupancy (%) |
|
|
|
62.0%
|
|
|
59.0%
|
|
|
3.0
|
|
|
|
60.1%
|
|
|
58.8%
|
|
|
1.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes same store owned,
leased, managed, and franchised hotels
|
(2) Includes same store owned,
leased, and managed hotels
|
|
|
|
|
STARWOOD
HOTELS & RESORTS WORLDWIDE, INC. |
Owned
Hotel Results - Same Store (1) |
For
the Three Months Ended June 30, |
UNAUDITED
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WORLDWIDE |
|
NORTH AMERICA |
|
INTERNATIONAL |
|
|
|
|
|
|
2012
|
|
2011
|
|
Variance
|
|
2012
|
|
2011
|
|
Variance
|
|
2012
|
|
2011
|
|
Variance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL HOTELS |
|
|
|
|
|
|
48 Hotels
|
|
|
|
|
|
23 Hotels
|
|
|
|
|
|
25 Hotels
|
|
|
|
REVPAR ($) |
|
|
|
|
172.34
|
|
|
171.91
|
|
|
0.3
|
%
|
|
176.01
|
|
|
174.06
|
|
|
1.1
|
%
|
|
167.94
|
|
|
169.33
|
|
|
(0.8
|
%)
|
|
ADR ($) |
|
|
|
|
230.75
|
|
|
231.02
|
|
|
(0.1
|
%)
|
|
224.71
|
|
|
222.05
|
|
|
1.2
|
%
|
|
238.82
|
|
|
243.12
|
|
|
(1.8
|
%)
|
|
Occupancy (%) |
|
|
|
|
74.7%
|
|
74.4%
|
|
0.3
|
|
|
78.3%
|
|
78.4%
|
|
(0.1
|
)
|
|
70.3%
|
|
69.6%
|
|
0.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Revenue |
|
|
|
|
398,663
|
|
|
402,189
|
|
|
(0.9
|
%)
|
|
221,573
|
|
|
221,043
|
|
|
0.2
|
%
|
|
177,089
|
|
|
181,146
|
|
|
(2.2
|
%)
|
|
Total
Expenses |
|
|
|
|
305,765
|
|
|
315,015
|
|
|
2.9
|
%
|
|
176,071
|
|
|
178,350
|
|
|
1.3
|
%
|
|
129,694
|
|
|
136,665
|
|
|
5.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BRANDED HOTELS |
|
|
|
|
|
|
43 Hotels
|
|
|
|
|
|
18 Hotels
|
|
|
|
|
|
25 Hotels
|
|
|
|
REVPAR ($) |
|
|
|
|
174.84
|
|
|
175.61
|
|
|
(0.4
|
%)
|
|
181.65
|
|
|
181.82
|
|
|
(0.1
|
%)
|
|
167.94
|
|
|
169.33
|
|
|
(0.8
|
%)
|
|
ADR ($) |
|
|
|
|
232.17
|
|
|
233.37
|
|
|
(0.5
|
%)
|
|
226.40
|
|
|
225.07
|
|
|
0.6
|
%
|
|
238.82
|
|
|
243.12
|
|
|
(1.8
|
%)
|
|
Occupancy (%) |
|
|
|
|
75.3%
|
|
75.2%
|
|
0.1
|
|
|
80.2%
|
|
80.8%
|
|
(0.6
|
)
|
|
70.3%
|
|
69.6%
|
|
0.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Revenue |
|
|
|
|
374,329
|
|
|
379,819
|
|
|
(1.4
|
%)
|
|
197,240
|
|
|
198,673
|
|
|
(0.7
|
%)
|
|
177,089
|
|
|
181,146
|
|
|
(2.2
|
%)
|
|
Total
Expenses |
|
|
|
|
286,403
|
|
|
296,064
|
|
|
3.3
|
%
|
|
156,709
|
|
|
159,399
|
|
|
1.7
|
%
|
|
129,694
|
|
|
136,665
|
|
|
5.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Hotel Results exclude five hotels
sold and 11 hotels without comparable results during 2011 & 2012
|
* |
Revenues & Expenses above are
represented in '000's
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
STARWOOD
HOTELS & RESORTS WORLDWIDE, INC. |
Management
Fees, Franchise Fees and Other Income |
For
the Three Months Ended June 30, |
UNAUDITED
($ millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Worldwide |
|
|
|
|
2012
|
|
|
2011
|
|
|
$ Variance
|
|
|
% Variance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Management
Fees: |
|
|
|
|
|
|
|
|
|
|
|
|
Base
Fees |
|
|
85
|
|
|
79
|
|
|
6
|
|
|
7.6% |
Incentive Fees |
|
|
41
|
|
|
32
|
|
|
9
|
|
|
28.1% |
Total
Management Fees |
|
|
126
|
|
|
111
|
|
|
15
|
|
|
13.5% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Franchise Fees |
|
|
52
|
|
|
49
|
|
|
3
|
|
|
6.1% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Management & Franchise Fees |
|
|
178
|
|
|
160
|
|
|
18
|
|
|
11.3% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Management & Franchise Revenues (1) |
|
|
37
|
|
|
31
|
|
|
6
|
|
|
19.4% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Management & Franchise Revenues |
|
|
215
|
|
|
191
|
|
|
24
|
|
|
12.6% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other |
|
|
7
|
|
|
10
|
|
|
(3) |
|
|
(30.0%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Management Fees, Franchise Fees & Other Income |
|
|
222
|
|
|
201
|
|
|
21
|
|
|
10.4% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Other Management &
Franchise Revenues includes the amortization of deferred gains of
approximately $22 in
2012 and $21 in 2011, resulting from the sales of hotels subject to
long-term management contracts and
termination fees.
|
|
|
Vacation Ownership &
Residential Revenues and Expenses
|
For
the Three Months Ended June 30, |
UNAUDITED
($ millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2012
|
|
|
2011
|
|
|
|
$ Variance
|
|
|
% Variance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Originated Sales
Revenues (1) -- Vacation Ownership Sales |
|
|
|
|
|
76
|
|
|
80
|
|
|
|
(4) |
|
|
(5.0%) |
Other Sales and
Services Revenues (2) |
|
|
|
|
|
72
|
|
|
70
|
|
|
|
2
|
|
|
2.9% |
Deferred Revenues
-- Percentage of Completion |
|
|
|
|
|
2
|
|
|
- |
|
|
|
2
|
|
|
n/m |
Deferred
Revenues -- Other (3) |
|
|
|
|
|
(2) |
|
|
(6) |
|
|
|
4
|
|
|
66.7% |
Vacation
Ownership Sales and Services Revenues |
|
|
|
|
|
148
|
|
|
144
|
|
|
|
4
|
|
|
2.8% |
Residential
Sales and Services Revenues (4) |
|
|
|
|
|
168
|
|
|
2
|
|
|
|
166
|
|
|
n/m |
Total
Vacation Ownership & Residential Sales and Services Revenues |
|
|
|
|
|
316
|
|
|
146
|
|
|
|
170
|
|
|
n/m |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Originated Sales
Expenses (5) -- Vacation Ownership Sales |
|
|
|
|
|
52
|
|
|
54
|
|
|
|
2
|
|
|
3.7% |
Other Expenses (6)
|
|
|
|
|
|
52
|
|
|
53
|
|
|
|
1
|
|
|
1.9% |
Deferred Expenses
-- Percentage of Completion |
|
|
|
|
|
2
|
|
|
- |
|
|
|
(2) |
|
|
n/m |
Deferred
Expenses -- Other |
|
|
|
|
|
3
|
|
|
3
|
|
|
|
0
|
|
|
- |
Vacation
Ownership Expenses |
|
|
|
|
|
109
|
|
|
110
|
|
|
|
1
|
|
|
0.9% |
Residential
Expenses (4) |
|
|
|
|
|
132
|
|
|
2
|
|
|
|
(130) |
|
|
n/m |
Total
Vacation Ownership & Residential Expenses |
|
|
|
|
|
241
|
|
|
112
|
|
|
|
(129) |
|
|
n/m |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Timeshare sales revenue
originated at each sales location before deferrals of revenue for U.S.
GAAP reporting purposes
|
(2) Includes resort income,
interest income, gain on sale of notes receivable, and miscellaneous
other revenues
|
(3) Includes deferral of revenue
for contracts still in rescission period, contracts that do not yet
meet the requirements of ASC 978-605-25
|
and provision for loan loss
|
(4) For 2012, includes $167
million of revenues and $132 million expenses associated with the St.
Regis Bal Harbour residential project
|
(5) Timeshare cost of sales and
sales & marketing expenses before deferrals of sales expenses for
U.S. GAAP reporting purposes
|
(6) Includes resort, general and
administrative, and other miscellaneous expenses
|
|
|
|
|
Note: Deferred revenue is
calculated based on the Percentage of Completion ("POC") of the
project. Deferred expenses, also based on POC, include
|
product costs and direct sales and
marketing costs only. Indirect sales and marketing costs are not
deferred per ASC 978-720-25 and ASC 978-340-25.
|
|
|
|
|
n/m =
not meaningful |
|
|
|
|
STARWOOD
HOTELS & RESORTS WORLDWIDE, INC. |
Systemwide(1)
Statistics - Same Store |
For
the Six Months Ended June 30, |
UNAUDITED
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Systemwide - Worldwide |
|
|
Systemwide - North America |
|
|
Systemwide - International |
|
|
|
|
2012
|
|
2011
|
|
Variance
|
|
|
2012
|
|
2011
|
|
Variance
|
|
|
2012
|
|
2011
|
|
Variance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL
HOTELS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REVPAR
($) |
|
|
116.25
|
|
|
110.79
|
|
|
4.9
|
%
|
|
|
116.58
|
|
|
108.94
|
|
|
7.0
|
%
|
|
|
115.81
|
|
|
113.30
|
|
|
2.2
|
%
|
ADR
($) |
|
|
169.77
|
|
|
167.80
|
|
|
1.2
|
%
|
|
|
162.36
|
|
|
157.06
|
|
|
3.4
|
%
|
|
|
180.99
|
|
|
184.17
|
|
|
(1.7
|
%)
|
Occupancy (%) |
|
|
68.5%
|
|
66.0%
|
|
2.5
|
|
|
|
71.8%
|
|
69.4%
|
|
2.4
|
|
|
|
64.0%
|
|
61.5%
|
|
2.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SHERATON
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REVPAR
($) |
|
|
97.44
|
|
|
92.90
|
|
|
4.9
|
%
|
|
|
97.20
|
|
|
91.11
|
|
|
6.7
|
%
|
|
|
97.74
|
|
|
95.13
|
|
|
2.7
|
%
|
ADR
($) |
|
|
146.86
|
|
|
144.61
|
|
|
1.6
|
%
|
|
|
138.29
|
|
|
134.38
|
|
|
2.9
|
%
|
|
|
159.04
|
|
|
159.06
|
|
|
(0.0
|
%)
|
Occupancy (%) |
|
|
66.3%
|
|
64.2%
|
|
2.1
|
|
|
|
70.3%
|
|
67.8%
|
|
2.5
|
|
|
|
61.5%
|
|
59.8%
|
|
1.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WESTIN
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REVPAR
($) |
|
|
133.02
|
|
|
125.37
|
|
|
6.1
|
%
|
|
|
130.63
|
|
|
122.77
|
|
|
6.4
|
%
|
|
|
139.20
|
|
|
132.10
|
|
|
5.4
|
%
|
ADR
($) |
|
|
183.99
|
|
|
180.27
|
|
|
2.1
|
%
|
|
|
177.31
|
|
|
171.12
|
|
|
3.6
|
%
|
|
|
202.58
|
|
|
206.89
|
|
|
(2.1
|
%)
|
Occupancy (%) |
|
|
72.3%
|
|
69.5%
|
|
2.8
|
|
|
|
73.7%
|
|
71.7%
|
|
2.0
|
|
|
|
68.7%
|
|
63.9%
|
|
4.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ST.
REGIS/LUXURY COLLECTION |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REVPAR
($) |
|
|
187.05
|
|
|
185.48
|
|
|
0.8
|
%
|
|
|
227.33
|
|
|
208.38
|
|
|
9.1
|
%
|
|
|
165.31
|
|
|
173.06
|
|
|
(4.5
|
%)
|
ADR
($) |
|
|
295.90
|
|
|
299.99
|
|
|
(1.4
|
%)
|
|
|
320.19
|
|
|
304.24
|
|
|
5.2
|
%
|
|
|
280.13
|
|
|
297.28
|
|
|
(5.8
|
%)
|
Occupancy (%) |
|
|
63.2%
|
|
61.8%
|
|
1.4
|
|
|
|
71.0%
|
|
68.5%
|
|
2.5
|
|
|
|
59.0%
|
|
58.2%
|
|
0.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LE
MERIDIEN |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REVPAR
($) |
|
|
128.21
|
|
|
125.47
|
|
|
2.2
|
%
|
|
|
198.49
|
|
|
188.85
|
|
|
5.1
|
%
|
|
|
120.46
|
|
|
118.45
|
|
|
1.7
|
%
|
ADR
($) |
|
|
185.51
|
|
|
190.74
|
|
|
(2.7
|
%)
|
|
|
240.37
|
|
|
229.98
|
|
|
4.5
|
%
|
|
|
178.12
|
|
|
185.16
|
|
|
(3.8
|
%)
|
Occupancy (%) |
|
|
69.1%
|
|
65.8%
|
|
3.3
|
|
|
|
82.6%
|
|
82.1%
|
|
0.5
|
|
|
|
67.6%
|
|
64.0%
|
|
3.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REVPAR
($) |
|
|
207.36
|
|
|
193.98
|
|
|
6.9
|
%
|
|
|
197.81
|
|
|
184.13
|
|
|
7.4
|
%
|
|
|
242.22
|
|
|
229.90
|
|
|
5.4
|
%
|
ADR
($) |
|
|
270.42
|
|
|
261.11
|
|
|
3.6
|
%
|
|
|
254.92
|
|
|
245.83
|
|
|
3.7
|
%
|
|
|
330.24
|
|
|
319.11
|
|
|
3.5
|
%
|
Occupancy (%) |
|
|
76.7%
|
|
74.3%
|
|
2.4
|
|
|
|
77.6%
|
|
74.9%
|
|
2.7
|
|
|
|
73.3%
|
|
72.0%
|
|
1.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FOUR
POINTS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REVPAR
($) |
|
|
79.42
|
|
|
75.18
|
|
|
5.6
|
%
|
|
|
76.10
|
|
|
71.17
|
|
|
6.9
|
%
|
|
|
84.84
|
|
|
81.71
|
|
|
3.8
|
%
|
ADR
($) |
|
|
117.25
|
|
|
114.61
|
|
|
2.3
|
%
|
|
|
110.19
|
|
|
106.87
|
|
|
3.1
|
%
|
|
|
129.41
|
|
|
127.74
|
|
|
1.3
|
%
|
Occupancy (%) |
|
|
67.7%
|
|
65.6%
|
|
2.1
|
|
|
|
69.1%
|
|
66.6%
|
|
2.5
|
|
|
|
65.6%
|
|
64.0%
|
1.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ALOFT |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REVPAR
($) |
|
|
74.39
|
|
|
68.64
|
|
|
8.4
|
%
|
|
|
75.60
|
|
|
69.07
|
|
|
9.5
|
%
|
|
|
|
|
|
|
|
ADR
($) |
|
|
106.47
|
|
|
106.63
|
|
|
(0.2
|
%)
|
|
|
107.47
|
|
|
105.22
|
|
|
2.1
|
%
|
|
|
|
|
|
|
|
Occupancy (%) |
|
|
69.9%
|
|
64.4%
|
|
5.5
|
|
|
|
70.3%
|
|
65.6%
|
|
4.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes same store owned,
leased, managed, and franchised hotels
|
|
|
|
|
STARWOOD
HOTELS & RESORTS WORLDWIDE, INC. |
Worldwide
Hotel Results - Same Store |
For
the Six Months Ended June 30, |
UNAUDITED
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Systemwide (1)
|
|
|
Company-Operated (2)
|
|
|
|
|
2012
|
|
2011
|
|
Variance
|
|
|
2012
|
|
2011
|
|
Variance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL
WORLDWIDE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REVPAR ($) |
|
|
116.25
|
|
|
110.79
|
|
|
4.9
|
%
|
|
|
131.08
|
|
|
125.02
|
|
|
4.8
|
%
|
|
ADR ($) |
|
|
169.77
|
|
|
167.80
|
|
|
1.2
|
%
|
|
|
191.22
|
|
|
188.75
|
|
|
1.3
|
%
|
|
Occupancy (%) |
|
|
68.5%
|
|
66.0%
|
|
2.5
|
|
|
|
68.5%
|
|
66.2%
|
|
2.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NORTH
AMERICA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REVPAR ($) |
|
|
116.58
|
|
|
108.94
|
|
|
7.0
|
%
|
|
|
145.54
|
|
|
136.08
|
|
|
7.0
|
%
|
|
ADR ($) |
|
|
162.36
|
|
|
157.06
|
|
|
3.4
|
%
|
|
|
196.98
|
|
|
188.99
|
|
|
4.2
|
%
|
|
Occupancy (%) |
|
|
71.8%
|
|
69.4%
|
|
2.4
|
|
|
|
73.9%
|
|
72.0%
|
|
1.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EUROPE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REVPAR ($) |
|
|
134.81
|
|
|
142.93
|
|
|
(5.7
|
%)
|
|
|
145.48
|
|
|
153.42
|
|
|
(5.2
|
%)
|
|
ADR ($) |
|
|
210.73
|
|
|
223.75
|
|
|
(5.8
|
%)
|
|
|
222.27
|
|
|
235.29
|
|
|
(5.5
|
%)
|
|
Occupancy (%) |
|
|
64.0%
|
|
63.9%
|
|
0.1
|
|
|
|
65.4%
|
|
65.2%
|
|
0.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AFRICA
& MIDDLE EAST |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REVPAR ($) |
|
|
117.39
|
|
|
111.15
|
|
|
5.6
|
%
|
|
|
117.61
|
|
|
111.83
|
|
|
5.2
|
%
|
|
ADR ($) |
|
|
180.49
|
|
|
186.36
|
|
|
(3.1
|
%)
|
|
|
181.64
|
|
|
188.27
|
|
|
(3.5
|
%)
|
|
Occupancy (%) |
|
|
65.0%
|
|
59.6%
|
|
5.4
|
|
|
|
64.7%
|
|
59.4%
|
|
5.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASIA
PACIFIC |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REVPAR ($) |
|
|
106.67
|
|
|
100.29
|
|
|
6.4
|
%
|
|
|
107.80
|
|
|
100.06
|
|
|
7.7
|
%
|
|
ADR ($) |
|
|
166.60
|
|
|
164.41
|
|
|
1.3
|
%
|
|
|
167.75
|
|
|
163.40
|
|
|
2.7
|
%
|
|
Occupancy (%) |
|
|
64.0%
|
|
61.0%
|
|
3.0
|
|
|
|
64.3%
|
|
61.2%
|
|
3.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LATIN
AMERICA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REVPAR ($) |
|
|
101.71
|
|
|
92.15
|
|
|
10.4
|
%
|
|
|
110.23
|
|
|
96.71
|
|
|
14.0
|
%
|
|
ADR ($) |
|
|
163.11
|
|
|
153.78
|
|
|
6.1
|
%
|
|
|
175.05
|
|
|
160.60
|
|
|
9.0
|
%
|
|
Occupancy (%) |
|
|
62.4%
|
|
59.9%
|
|
2.5
|
|
|
|
63.0%
|
|
60.2%
|
|
2.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes same store owned,
leased, managed, and franchised hotels
|
(2) Includes same store owned,
leased, and managed hotels
|
|
|
|
|
STARWOOD
HOTELS & RESORTS WORLDWIDE, INC. |
Owned
Hotel Results - Same Store (1) |
For
the Six Months Ended June 30, |
UNAUDITED
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WORLDWIDE |
|
NORTH AMERICA |
|
INTERNATIONAL |
|
|
|
2012
|
|
2011
|
|
Variance
|
|
2012
|
|
2011
|
|
Variance
|
|
2012
|
|
2011
|
|
Variance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL HOTELS |
|
|
|
47 Hotels
|
|
|
|
|
|
23 Hotels
|
|
|
|
|
|
24 Hotels
|
|
|
REVPAR ($) |
|
159.67
|
|
|
156.06
|
|
|
2.3
|
%
|
|
167.58
|
|
|
163.45
|
|
|
2.5
|
%
|
|
149.83
|
|
|
146.89
|
|
|
2.0
|
%
|
ADR ($) |
|
222.01
|
|
|
218.97
|
|
|
1.4
|
%
|
|
223.37
|
|
|
218.26
|
|
|
2.3
|
%
|
|
220.15
|
|
|
219.97
|
|
|
0.1
|
%
|
Occupancy (%) |
|
71.9%
|
|
71.3%
|
|
0.6
|
|
|
75.0%
|
|
74.9%
|
|
0.1
|
|
|
68.1%
|
|
66.8%
|
|
1.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Revenue |
|
739,495
|
|
|
728,289
|
|
|
1.5
|
%
|
|
429,370
|
|
|
420,960
|
|
|
2.0
|
%
|
|
310,124
|
|
|
307,329
|
|
|
0.9
|
%
|
Total Expenses |
|
589,773
|
|
|
592,267
|
|
|
0.4
|
%
|
|
351,072
|
|
|
349,381
|
|
|
(0.5
|
%)
|
|
238,701
|
|
|
242,886
|
|
|
1.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BRANDED HOTELS |
|
|
|
42 Hotels
|
|
|
|
|
|
18 Hotels
|
|
|
|
|
|
24 Hotels
|
|
|
REVPAR ($) |
|
162.82
|
|
|
159.87
|
|
|
1.8
|
%
|
|
175.20
|
|
|
172.27
|
|
|
1.7
|
%
|
|
149.83
|
|
|
146.89
|
|
|
2.0
|
%
|
ADR ($) |
|
224.00
|
|
|
220.95
|
|
|
1.4
|
%
|
|
227.24
|
|
|
221.76
|
|
|
2.5
|
%
|
|
220.15
|
|
|
219.97
|
|
|
0.1
|
%
|
Occupancy (%) |
|
72.7%
|
|
72.4%
|
|
0.3
|
|
|
77.1%
|
|
77.7%
|
|
(0.6
|
)
|
|
68.1%
|
|
66.8%
|
|
1.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Revenue |
|
695,598
|
|
|
687,716
|
|
|
1.1
|
%
|
|
385,473
|
|
|
380,387
|
|
|
1.3
|
%
|
|
310,124
|
|
|
307,329
|
|
|
0.9
|
%
|
Total Expenses |
|
551,333
|
|
|
554,543
|
|
|
0.6
|
%
|
|
312,632
|
|
|
311,657
|
|
|
(0.3
|
%)
|
|
238,701
|
|
|
242,886
|
|
|
1.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Hotel Results exclude five
hotels sold and 12 hotels without comparable results during 2011 &
2012
|
* Revenues & Expenses above
are represented in '000's
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
STARWOOD
HOTELS & RESORTS WORLDWIDE, INC. |
Management
Fees, Franchise Fees and Other Income |
For
the Six Months Ended June 30, |
UNAUDITED
($ millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Worldwide |
|
|
|
|
|
2012
|
|
2011
|
|
$ Variance
|
|
% Variance
|
|
|
|
|
|
|
|
|
|
|
|
|
Management
Fees: |
|
|
|
|
|
|
|
|
|
|
Base
Fees |
|
|
|
161
|
|
146
|
|
15 |
|
10.3% |
Incentive Fees |
|
|
|
80
|
|
62
|
|
18 |
|
29.0% |
Total
Management Fees |
|
|
|
241
|
|
208
|
|
33 |
|
15.9% |
|
|
|
|
|
|
|
|
|
|
|
|
Franchise Fees |
|
|
|
97
|
|
92
|
|
5 |
|
5.4% |
|
|
|
|
|
|
|
|
|
|
|
|
Total
Management & Franchise Fees |
|
|
|
338
|
|
300
|
|
38 |
|
12.7% |
|
|
|
|
|
|
|
|
|
|
|
|
Other Management & Franchise Revenues (1) |
|
|
|
73
|
|
63
|
|
10 |
|
15.9% |
|
|
|
|
|
|
|
|
|
|
|
|
Total
Management & Franchise Revenues |
|
|
|
411
|
|
363
|
|
48 |
|
13.2% |
|
|
|
|
|
|
|
|
|
|
|
|
Other |
|
|
|
12
|
|
15
|
|
(3) |
|
(20.0%) |
|
|
|
|
|
|
|
|
|
|
|
|
Management Fees, Franchise Fees & Other Income |
|
|
|
423
|
|
378
|
|
45 |
|
11.9% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Other Management &
Franchise Revenues includes the amortization of deferred gains of
approximately $43 in
2012 and $42 in 2011, resulting from the sales of hotels subject to
long-term management contracts and
termination fees.
|
|
|
STARWOOD
HOTELS & RESORTS WORLDWIDE, INC. |
Vacation
Ownership & Residential Revenues and Expenses |
For
the Six Months Ended June 30, |
UNAUDITED
($ millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2012
|
|
|
2011
|
|
|
|
$ Variance
|
|
|
% Variance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Originated Sales
Revenues (1) -- Vacation Ownership Sales |
|
|
|
|
|
|
159
|
|
|
162
|
|
|
|
(3) |
|
|
(1.9%) |
Other Sales and
Services Revenues (2) |
|
|
|
|
|
|
142
|
|
|
136
|
|
|
|
6
|
|
|
4.4% |
Deferred Revenues
-- Percentage of Completion |
|
|
|
|
|
|
3
|
|
|
- |
|
|
|
3
|
|
|
n/m |
Deferred
Revenues -- Other (3) |
|
|
|
|
|
|
(4) |
|
|
(7) |
|
|
|
3
|
|
|
42.9% |
Vacation
Ownership Sales and Services Revenues |
|
|
|
|
|
|
300
|
|
|
291
|
|
|
|
9
|
|
|
3.1% |
Residential
Sales and Services Revenues (4) |
|
|
|
|
|
|
530
|
|
|
8
|
|
|
|
522
|
|
|
n/m |
Total
Vacation Ownership & Residential Sales and Services Revenues |
|
|
|
|
|
|
830
|
|
|
299
|
|
|
|
531
|
|
|
n/m |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Originated Sales
Expenses (5) -- Vacation Ownership Sales |
|
|
|
|
|
|
111
|
|
|
112
|
|
|
|
1
|
|
|
0.9% |
Other Expenses (6)
|
|
|
|
|
|
|
105
|
|
|
101
|
|
|
|
(4) |
|
|
(4.0%) |
Deferred Expenses
-- Percentage of Completion |
|
|
|
|
|
|
2
|
|
|
- |
|
|
|
(2) |
|
|
n/m |
Deferred
Expenses -- Other |
|
|
|
|
|
|
6
|
|
|
6
|
|
|
|
- |
|
|
- |
Vacation
Ownership Expenses |
|
|
|
|
|
|
224
|
|
|
219
|
|
|
|
(5) |
|
|
(2.3%) |
Residential
Expenses (4) |
|
|
|
|
|
|
410
|
|
|
4
|
|
|
|
(406) |
|
|
n/m |
Total
Vacation Ownership & Residential Expenses |
|
|
|
|
|
|
634
|
|
|
223
|
|
|
|
(411) |
|
|
n/m |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Timeshare sales revenue
originated at each sales location before deferrals of revenue for U.S.
GAAP reporting purposes
|
(2) Includes resort income,
interest income, gain on sale of notes receivable, and miscellaneous
other revenues
|
(3) Includes deferral of revenue
for contracts still in rescission period, contracts that do not yet
meet the requirements of ASC 978-605-25
and provision for loan loss
|
(4) For 2012, includes $523
million of revenues and $410 million expenses associated with the St.
Regis Bal Harbour residential project
|
(5) Timeshare cost of sales and
sales & marketing expenses before deferrals of sales expenses for
U.S. GAAP reporting purposes
|
(6) Includes resort, general and
administrative, and other miscellaneous expenses
|
|
|
|
|
|
|
Note: Deferred revenue is
calculated based on the Percentage of Completion ("POC") of the
project. Deferred expenses, also based on POC, include
|
product costs and direct sales and
marketing costs only. Indirect sales and marketing costs are not
deferred per ASC 978-720-25 and ASC 978-340-25.
|
|
|
|
n/m =
not meaningful |
|
|
STARWOOD
HOTELS & RESORTS WORLDWIDE, INC. |
Hotels
without Comparable Results & Other Selected Items |
As
of June 30, 2012 |
UNAUDITED
($ millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Properties without comparable results in 2012 and 2011:
|
|
|
|
Revenues and Expenses Associated with Assets Sold or
Closed in 2012 and 2011: (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property
|
|
Location
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The
Westin Peachtree Plaza |
|
Atlanta,
GA |
|
|
|
|
|
Q1 |
|
|
Q2 |
|
|
Q3 |
|
|
Q4 |
|
|
Full Year |
St.
Regis Bal Harbour |
|
Bal
Harbour, FL |
|
|
|
Hotels
Sold or Closed in 2011: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sheraton
Kauai Resort |
|
Koloa,
HI |
|
|
|
2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Grand
Hotel - Florence |
|
Florence, Italy |
|
|
|
Revenues |
|
$
|
28
|
|
|
$
|
23
|
|
|
$
|
5
|
|
|
$
|
-
|
|
|
|
$
|
56
|
W
London - Leicester Square |
|
London, England |
|
|
|
Expenses
(excluding depreciation) |
|
$
|
28
|
|
|
$
|
19
|
|
|
$
|
4
|
|
|
$
|
(1
|
)
|
|
|
$
|
50
|
Clarion
Hotel |
|
Millbrae, CA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
New Orleans - French Quarter |
|
New Orleans, LA |
|
|
|
Hotels
Sold or Closed in 2012: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sheraton
Suites Philadelphia Airport |
|
Philadelphia, PA |
|
|
|
2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hotel
Maria Cristina |
|
San
Sebastian, Spain |
|
|
|
Revenues |
|
$
|
2
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
|
$
|
2
|
Hotel
Alfonso XIII |
|
Seville, Spain |
|
|
|
Expenses
(excluding depreciation) |
|
$
|
2
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
|
$
|
2
|
Four
Points Tucson |
|
Tucson, AZ |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hotel
Gritti Palace |
|
Venice, Italy |
|
|
|
2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
$
|
3
|
|
|
$
|
3
|
|
|
$
|
2
|
|
|
$
|
2
|
|
|
|
$
|
10
|
Properties sold or closed in 2012 and 2011: |
|
|
|
Expenses
(excluding depreciation) |
|
$
|
2
|
|
|
$
|
3
|
|
|
$
|
3
|
|
|
$
|
2
|
|
|
|
$
|
10
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property
|
|
Location
|
|
|
|
(1) Results consist of one hotel
sold in 2012 and four hotels sold in 2011. These amounts are included
in the revenues
|
Atlanta
Perimeter |
|
Atlanta,
GA |
|
|
|
and expenses from owned, leased and consolidated joint
venture hotels in the statements of income for 2012 and 2011. |
Boston
Park Plaza |
|
Boston,
MA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
City Center |
|
Chicago,
IL |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The
Westin Gaslamp Quarter |
|
San
Diego, CA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hotel
Bristol |
|
Vienna,
Austria |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
STARWOOD
HOTELS & RESORTS WORLDWIDE, INC. |
Capital
Expenditures |
For
the Three and Six Months Ended June 30, 2012 |
UNAUDITED
($ millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q2
|
|
|
|
|
YTD
|
Maintenance
Capital Expenditures: (1) |
|
|
|
|
|
|
|
|
|
Owned,
Leased and Consolidated Joint Venture Hotels |
|
|
|
5
|
|
|
|
|
16
|
Corporate/IT
|
|
|
|
17
|
|
|
|
|
35
|
Subtotal |
|
|
|
22
|
|
|
|
|
51
|
|
|
|
|
|
|
|
|
|
|
Vacation
Ownership and Residential Capital Expenditures: |
|
|
|
|
|
|
|
|
|
Net
capital expenditures for inventory (excluding St. Regis Bal Harbour) (2)
|
|
|
|
(9) |
|
|
|
|
(20) |
Capital
expenditures for inventory - St. Regis Bal Harbour |
|
|
|
5
|
|
|
|
|
17
|
Subtotal |
|
|
|
(4) |
|
|
|
|
(3) |
|
|
|
|
|
|
|
|
|
|
Development
Capital |
|
|
|
70
|
|
|
|
|
120
|
|
|
|
|
|
|
|
|
|
|
Total
Capital Expenditures |
|
|
|
88
|
|
|
|
|
168
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Maintenance capital expenditures include improvements
that extend the useful life of the asset. |
|
|
(2) Represents gross inventory
capital expenditures of $9 and $19 in the three and six months ended
June
|
30, 2012, respectively, less cost
of sales of $18 and $39 in the three and six months ended June 30,
2012,
|
respectively.
|
|
|
STARWOOD
HOTELS & RESORTS WORLDWIDE, INC. |
2012
Divisional Hotel Inventory Summary by Ownership by Brand* |
As
of June 30, 2012 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NAD |
|
EUROPE |
|
AME |
|
LAD |
|
ASIA |
|
TOTAL |
|
|
Hotels
|
|
Rooms
|
|
Hotels
|
|
Rooms
|
|
Hotels
|
|
Rooms
|
|
Hotels
|
|
Rooms
|
|
Hotels
|
|
Rooms
|
|
Hotels
|
|
Rooms
|
Owned |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sheraton |
|
6
|
|
3,528
|
|
4
|
|
705
|
|
-
|
|
-
|
|
5
|
|
2,699
|
|
2
|
|
821
|
|
17
|
|
7,753
|
Westin |
|
4
|
|
2,399
|
|
3
|
|
650
|
|
-
|
|
-
|
|
3
|
|
902
|
|
1
|
|
273
|
|
11
|
|
4,224
|
Four
Points |
|
2
|
|
327
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
2
|
|
327
|
W |
|
5
|
|
1,795
|
|
2
|
|
665
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
7
|
|
2,460
|
Luxury
Collection |
|
1
|
|
643
|
|
5
|
|
584
|
|
-
|
|
-
|
|
1
|
|
181
|
|
-
|
|
-
|
|
7
|
|
1,408
|
St. Regis |
|
3
|
|
725
|
|
2
|
|
261
|
|
-
|
|
-
|
|
-
|
|
-
|
|
1
|
|
160
|
|
6
|
|
1,146
|
Aloft |
|
2
|
|
272
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
2
|
|
272
|
Element |
|
1
|
|
123
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
1
|
|
123
|
Other
|
|
6
|
|
1,654
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
6
|
|
1,654
|
Total
Owned |
|
30
|
|
11,466
|
|
16
|
|
2,865
|
|
-
|
|
-
|
|
9
|
|
3,782
|
|
4
|
|
1,254
|
|
59
|
|
19,367
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Managed
& UJV |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sheraton |
|
37
|
|
26,283
|
|
41
|
|
11,936
|
|
31
|
|
8,624
|
|
15
|
|
2,950
|
|
74
|
|
26,549
|
|
198
|
|
76,342
|
Westin |
|
54
|
|
28,377
|
|
12
|
|
4,098
|
|
4
|
|
1,086
|
|
3
|
|
886
|
|
29
|
|
9,669
|
|
102
|
|
44,116
|
Four
Points |
|
1
|
|
171
|
|
6
|
|
1,013
|
|
7
|
|
1,329
|
|
4
|
|
517
|
|
18
|
|
5,560
|
|
36
|
|
8,590
|
W |
|
23
|
|
6,890
|
|
3
|
|
364
|
|
1
|
|
441
|
|
2
|
|
433
|
|
6
|
|
1,437
|
|
35
|
|
9,565
|
Luxury Collection
|
|
4
|
|
1,648
|
|
19
|
|
2,996
|
|
5
|
|
1,384
|
|
7
|
|
290
|
|
7
|
|
1,536
|
|
42
|
|
7,854
|
St. Regis |
|
9
|
|
1,811
|
|
2
|
|
223
|
|
2
|
|
713
|
|
2
|
|
309
|
|
8
|
|
2,048
|
|
23
|
|
5,104
|
Le Meridien |
|
4
|
|
607
|
|
21
|
|
6,173
|
|
31
|
|
7,073
|
|
-
|
|
-
|
|
26
|
|
7,249
|
|
82
|
|
21,102
|
Aloft |
|
-
|
|
-
|
|
2
|
|
399
|
|
1
|
|
408
|
|
2
|
|
292
|
|
6
|
|
1,327
|
|
11
|
|
2,426
|
Other
|
|
1
|
|
773
|
|
1
|
|
165
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
2
|
|
938
|
Total
Managed & UJV |
|
133
|
|
66,560
|
|
107
|
|
27,367
|
|
82
|
|
21,058
|
|
35
|
|
5,677
|
|
174
|
|
55,375
|
|
531
|
|
176,037
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Franchised
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sheraton |
|
161
|
|
47,979
|
|
16
|
|
4,290
|
|
2
|
|
403
|
|
9
|
|
2,332
|
|
13
|
|
6,081
|
|
201
|
|
61,085
|
Westin |
|
60
|
|
19,461
|
|
3
|
|
1,176
|
|
-
|
|
-
|
|
4
|
|
1,309
|
|
9
|
|
2,730
|
|
76
|
|
24,676
|
Four
Points |
|
107
|
|
16,989
|
|
5
|
|
835
|
|
-
|
|
-
|
|
8
|
|
1,239
|
|
8
|
|
1,441
|
|
128
|
|
20,504
|
Luxury
Collection |
|
8
|
|
1,621
|
|
11
|
|
1,537
|
|
-
|
|
-
|
|
2
|
|
248
|
|
11
|
|
2,577
|
|
32
|
|
5,983
|
Le
Meridien |
|
8
|
|
2,161
|
|
5
|
|
1,455
|
|
-
|
|
-
|
|
1
|
|
111
|
|
3
|
|
714
|
|
17
|
|
4,441
|
Aloft |
|
42
|
|
6,096
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
3
|
|
471
|
|
45
|
|
6,567
|
Element |
|
9
|
|
1,518
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
9
|
|
1,518
|
Other
|
|
1
|
|
275
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
1
|
|
275
|
Total
Franchised |
|
396
|
|
96,100
|
|
40
|
|
9,293
|
|
2
|
|
403
|
|
24
|
|
5,239
|
|
47
|
|
14,014
|
|
509
|
|
125,049
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Systemwide
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sheraton |
|
204
|
|
77,790
|
|
61
|
|
16,931
|
|
33
|
|
9,027
|
|
29
|
|
7,981
|
|
89
|
|
33,451
|
|
416
|
|
145,180
|
Westin |
|
118
|
|
50,237
|
|
18
|
|
5,924
|
|
4
|
|
1,086
|
|
10
|
|
3,097
|
|
39
|
|
12,672
|
|
189
|
|
73,016
|
Four
Points |
|
110
|
|
17,487
|
|
11
|
|
1,848
|
|
7
|
|
1,329
|
|
12
|
|
1,756
|
|
26
|
|
7,001
|
|
166
|
|
29,421
|
W |
|
28
|
|
8,685
|
|
5
|
|
1,029
|
|
1
|
|
441
|
|
2
|
|
433
|
|
6
|
|
1,437
|
|
42
|
|
12,025
|
Luxury
Collection |
|
13
|
|
3,912
|
|
35
|
|
5,117
|
|
5
|
|
1,384
|
|
10
|
|
719
|
|
18
|
|
4,113
|
|
81
|
|
15,245
|
St.
Regis |
|
12
|
|
2,536
|
|
4
|
|
484
|
|
2
|
|
713
|
|
2
|
|
309
|
|
9
|
|
2,208
|
|
29
|
|
6,250
|
Le
Meridien |
|
12
|
|
2,768
|
|
26
|
|
7,628
|
|
31
|
|
7,073
|
|
1
|
|
111
|
|
29
|
|
7,963
|
|
99
|
|
25,543
|
Aloft |
|
44
|
|
6,368
|
|
2
|
|
399
|
|
1
|
|
408
|
|
2
|
|
292
|
|
9
|
|
1,798
|
|
58
|
|
9,265
|
Element |
|
10
|
|
1,641
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
10
|
|
1,641
|
Other |
|
8
|
|
2,702
|
|
1
|
|
165
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
9
|
|
2,867
|
Vacation
Ownership |
|
12
|
|
6,780
|
|
-
|
|
-
|
|
-
|
|
-
|
|
1
|
|
580
|
|
-
|
|
-
|
|
13
|
|
7,360
|
Total
Systemwide |
|
571
|
|
180,906
|
|
163
|
|
39,525
|
|
84
|
|
21,461
|
|
69
|
|
15,278
|
|
225
|
|
70,643
|
|
1,112
|
|
327,813
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*Includes
Vacation Ownership properties |
|
|
STARWOOD
HOTELS & RESORTS WORLDWIDE, INC. |
Vacation
Ownership Inventory Pipeline |
As
of June 30, 2012 |
UNAUDITED
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
# Resorts |
|
|
|
|
|
# of Units (1) |
|
|
|
|
|
|
In |
|
|
In
Active |
|
|
|
|
|
|
|
|
Pre-sales/
|
|
|
Future |
|
|
Total
at |
Brand
|
|
|
Total(2)
|
|
|
Operations
|
|
|
Sales
|
|
|
|
|
|
Completed(3)
|
|
|
Development(4)
|
|
|
Capacity(5),(6)
|
|
|
Buildout
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sheraton |
|
|
7
|
|
|
7
|
|
|
6
|
|
|
|
|
|
3,079
|
|
|
-
|
|
|
712
|
|
|
3,791
|
Westin |
|
|
9
|
|
|
9
|
|
|
9
|
|
|
|
|
|
1,584
|
|
|
-
|
|
|
43
|
|
|
1,627
|
St. Regis |
|
|
2
|
|
|
2
|
|
|
-
|
|
|
|
|
|
56
|
|
|
-
|
|
|
-
|
|
|
56
|
The Luxury
Collection |
|
|
1
|
|
|
1
|
|
|
-
|
|
|
|
|
|
6
|
|
|
-
|
|
|
-
|
|
|
6
|
Unbranded
|
|
|
2
|
|
|
2
|
|
|
1
|
|
|
|
|
|
99
|
|
|
-
|
|
|
1
|
|
|
100
|
Total
SVO, Inc. |
|
|
21
|
|
|
21
|
|
|
16
|
|
|
|
|
|
4,824
|
|
|
-
|
|
|
756
|
|
|
5,580
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unconsolidated
Joint Ventures (UJV's) |
|
|
1
|
|
|
1
|
|
|
1
|
|
|
|
|
|
198
|
|
|
-
|
|
|
-
|
|
|
198
|
Total
including UJV's |
|
|
22
|
|
|
22
|
|
|
17
|
|
|
|
|
|
5,022
|
|
|
-
|
|
|
756
|
|
|
5,778
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Intervals Including UJV's (7) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
261,144
|
|
|
-
|
|
|
39,312
|
|
|
300,456
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Lockoff units are considered as one unit for this analysis. |
(2)
Includes resorts in operation, active sales or future development. |
(3)
Completed units include those units that have a certificate of
occupancy. |
(4) Units in Pre-sales/Development are in various stages
of development (including the permitting stage), most of which are
currently being offered for sale to customers. |
(5)
Based on owned land and average density in existing marketplaces. |
(6) Future units indicated above include planned timeshare
units on land owned by the Company or applicable UJV that have received
all major governmental land use |
approvals for the development of timeshare. There can be
no assurance that such units will in fact be developed and, if
developed, the time period of such development |
(which may be more than several years in the future). Some
of the projects may require additional third-party approvals or permits
for development and build |
out and may also be subject to legal challenges as well as
a commitment of capital by the Company. The actual number of units to
be constructed may be |
significantly lower than the number of future units
indicated. |
(7) Assumes 52
intervals per unit. |
|