STAMFORD, Conn.--(BUSINESS WIRE)--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 |
Actual |
||||||
| 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 |
Actual |
||||||
| 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 |
||
|
(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 |
||
|
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 |
|||
|
(c) |
During the three and six months ended June 30, 2012, the net
charges are associated with the redemption of approximately $495
million of |
||
|
(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 |
||
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) |
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|
Three Months Ended
June 30, |
Six Months Ended
June 30, |
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|
2012 |
2011 |
% |
2012 |
2011 |
% |
|||||||||||||||||||||||
| 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 |
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 |
(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 |
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 |
15 | 11 | 36.4 | |||||||||||||||||||||
| (61 | ) | (52 | ) | (17.3 | ) |
Interest expense, net of interest income of $1, $0, $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 |
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 |
||||||||||||||||||||||||||||
| $ | 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 |
||
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 |
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; |
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 |
||
|
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 |
% |
2012 |
2011 |
% |
|||||||||||||||||||||
|
Reconciliation of Net Income (Loss) to EBITDA and |
||||||||||||||||||||||||||
| $ | 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 |
(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, |
|
|
(b) |
Includes $(2) million and $1 million of tax expense (benefit)
recorded in discontinued operations for the three months ended
June 30, 2012 and |
|
|
(c) |
Includes $7 million of Starwood’s share of depreciation expense of
unconsolidated joint ventures for each of the three months ended
June 30, |
|
|
(d) |
Includes $1 million and $2 million of Starwood’s share of
amortization expense of unconsolidated joint ventures for the
three months ended June |
|
|
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 |
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 |
(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 |
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 |
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 |
(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 |
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 |
Year Ended
|
|||||||||||
| $ | 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 |
Year Ended
|
|||||||||||
| $ | 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 |
% |
Same-Store Owned Hotels
Worldwide |
2012 |
2011 |
% |
|||||||||||||||||
| 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 |
$ | 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 |
$ | 709 | $ | 742 | 4.4 | |||||||||||||
|
Three Months Ended
June 30, |
Six Months Ended
June 30, |
||||||||||||||||||||||
| 2012 | 2011 |
% |
Same-Store Owned Hotels
North America |
2012 | 2011 |
% |
|||||||||||||||||
|
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 |
$ | 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 |
$ | 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 |
$ | 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 |
$ | 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 $22 in |
|
Vacation Ownership & Residential Revenues and Expenses |
||||||||||||||||||||
| For the Three Months Ended June 30, | ||||||||||||||||||||
| UNAUDITED ($ 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 $43 in |
| STARWOOD HOTELS & RESORTS WORLDWIDE, INC. | |||||||||||||||||||||
| Vacation Ownership & Residential Revenues and Expenses | |||||||||||||||||||||
| For the Six Months Ended June 30, | |||||||||||||||||||||
| UNAUDITED ($ 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 |
||
|
(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. | |