Starwood reports strong first quarter 2008 results
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Starwood reports strong first quarter 2008 results
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Category: Worldwide - Industry economy
- Figures / Studies
This is a press release selected by our editorial committee and published online for free on 2008-04-24
Starwood Hotels & Resorts Worldwide, Inc. (NYSE:
HOT) today reported strong first quarter 2008 financial results.
First Quarter 2008 Highlights
Excluding special items, EPS from continuing operations was $0.44. Including
special items, EPS from continuing operations was $0.42.
Excluding special items, income from continuing operations was $83 million.
Income from continuing operations, including special items, was $79 million.
Total Company Adjusted EBITDA was $255 million.
Worldwide System-wide REVPAR for Same-Store Hotels increased 8.4% compared
to the first quarter of 2007. System-wide REVPAR for Same-Store Hotels in North
America increased 2.9%.
Management and franchise revenues increased 17.7% when compared to 2007.
Worldwide REVPAR for Starwood branded Same-Store Owned Hotels increased
9.7% compared to the first quarter of 2007. REVPAR for Starwood branded Same-
Store Owned Hotels in North America increased 8.2%.
Margins at Starwood branded Same-Store Owned Hotels Worldwide and in North
America were flat when compared to the first quarter of 2007.
Reported revenues from vacation ownership and residential sales decreased 16.8%
when compared to 2007.
The Company signed 43 hotel management and franchise contracts in the quarter
representing approximately 13,000 rooms.
During the first quarter, the Company repurchased approximately 6.1 million shares
at a cost of $277 million.
Starwood Hotels & Resorts Worldwide, Inc. (“Starwood” or the “Company”) today reported
EPS from continuing operations for the first quarter of 2008 of $0.42 compared to $0.56 in
the first quarter of 2007. Excluding special items, EPS from continuing operations was
$0.44 for the first quarter of 2008 compared to $0.48 in the first quarter of 2007. Excluding
special items, the effective income tax rate in the first quarter of 2008 was 28.7%
compared to 35.7% in the same period of 2007 primarily due to various tax planning
initiatives.
Income from continuing operations was $79 million in the first quarter of 2008 compared to
$123 million in 2007. Excluding special items, which net to a $4 million charge in 2008 and
a $19 million benefit in 2007, income from continuing operations was $83 million for the
first quarter of 2008 compared to $104 million in 2007.
Net income was $32 million and EPS was $0.17 in the first quarter of 2008, compared to
net income of $122 million and EPS of $0.56 in the first quarter of 2007. The 2008 results
were adversely affected by a $47 million tax charge to discontinued operations as a result
of a 2008 administrative tax ruling for an unrelated taxpayer that impacts the tax liability
associated with the 1998 disposition of a business.
Frits van Paasschen, CEO, said, “Starwood has again beaten expectations due to our
strong global presence and leading upper upscale and luxury platform. While domestic
REVPAR growth slowed in the quarter, our international divisions continued to experience
robust demand and delivered REVPAR growth of 15.5%. With 55% of our 120,000 room
pipeline to be built outside of the US, we continue to expand our lead in international
markets with strong new unit growth expected over the coming years. Our global portfolio
of branded owned hotels also performed well, delivering world-wide REVPAR growth of
9.7%. Finally, we continue to reduce our share count, buying back 6.1 million shares in the
quarter.”
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