Starwood Hotels & Resorts Worldwide, Inc. (NYSE: HOT) announced today that its Board of Directors has approved a dividend policy for 2006. After the previously announced sale of 38 hotels to Host Marriott Corporation is consummated, it will be the Company's intention to maintain its dividend at approximately $0.84 per share in 2006. This is inclusive of the dividend expected to be paid in the first quarter of 2006.
In connection with the sale of 38 hotels to Host Marriott Corporation, Starwood Hotels & Resorts (the "Trust") expects to declare a dividend for the first quarter of 2006 of approximately $0.21 per share to shareholders of record as of a date in the latter part of February 2006 to be paid in early March 2006. It is expected that the remainder of the 2006 dividend will be declared by the corporation in December to be paid in January.
Future dividend increases will be based on the earnings growth of the company and other considerations, and are expected to be declared and paid on an annual basis.
"We are extremely pleased that based on the company's strategic initiatives and cash flow projections we can return profits to our shareholders while continuing our reinvestment into the growth of our business," said Steven J. Heyer, Starwood's Chief Executive Officer.
