Starwood Reports Strong Second Quarter 2007 Results
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Starwood Reports Strong Second Quarter 2007 Results
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Catégorie : Monde -
Ceci est un communiqué de presse sélectionné par notre comité éditorial et mis en ligne gratuitement le 02-08-2007
Starwood Hotels & Resorts Worldwide, Inc.
(NYSE: HOT) today reported strong second quarter 2007 financial results.
Second Quarter 2007 Highlights
Excluding special items, EPS from continuing operations was $0.82 compared to
$0.74 for the second quarter of 2006. Including special items, EPS from continuing
operations was $0.67 compared to $3.01 in the second quarter of 2006. Special
items in 2006 net to a $511 million benefit, or $2.27 per share primarily due to
significant one-time income tax benefits realized in connection with the sale of 33
hotels to Host Hotels & Resorts (“Host”) during the period.
Worldwide System-wide REVPAR for Same-Store Hotels increased 8.4% compared
to the second quarter of 2006. System-wide REVPAR for Same-Store Hotels in
North America increased 5.0%.
Worldwide REVPAR for Starwood branded Same-Store Owned Hotels increased
10.4%. REVPAR for Starwood branded Same-Store Owned Hotels in North
America increased 6.1%.
Margins at Starwood branded Same-Store Owned Hotels Worldwide and in North
America improved 148 and 77 basis points, respectively, as compared to the
second quarter of 2006.
Management and franchise revenues increased 13.8% when compared to 2006.
Reported revenues from vacation ownership and residential sales increased 17.1%
when compared to 2006. Strong increases in revenues from vacation ownership
sales were partially offset by a decline in residential sales.
Excluding special items, income from continuing operations was $178 million
compared to $169 million in the same period of 2006. Net income, including special
items, was $145 million compared to $680 million in the second quarter of 2006.
Total Company Adjusted EBITDA was $362 million when compared to $332 million
in 2006.
During the second quarter, the Company repurchased 6.8 million shares at a cost of
$471 million.
The Company signed 33 hotel management and franchise contracts in the quarter
representing approximately 7,000 rooms.
Starwood Hotels & Resorts Worldwide, Inc. (“Starwood” or the “Company”) today reported
EPS from continuing operations for the second quarter of 2007 of $0.67 compared to $3.01
in the second quarter of 2006. Special items in 2007 net to a charge of $0.15 per share
and primarily relate to accelerated depreciation of fixed assets at the Sheraton Bal Harbour
which is being demolished and converted into a St. Regis hotel with residences and
fractional units. Special items in 2006 net to a benefit of $2.27 per share primarily due to
significant one-time income tax benefits realized in connection with the sale of 33 hotels to
Host during the period. Excluding special items, EPS from continuing operations was
$0.82 for the second quarter of 2007 compared to $0.74 in the second quarter of 2006.
Excluding special items, the effective income tax rate in the second quarter of 2007 was
24.1% and benefited from the Company recognizing foreign tax credits generated in prior
years.
Income from continuing operations was $145 million in the second quarter of 2007
compared to $680 million in 2006. Excluding special items, which net to a $33 million
charge in 2007 and a $511 million credit in 2006, income from continuing operations was
$178 million for the second quarter of 2007 compared to $169 million in 2006. The
Company’s earnings before special items during the second quarter of 2007 benefited from
$27 million (pre tax) or $22 million (after tax) of earnings from an unconsolidated joint
venture that sold several hotels during the quarter. In the second quarter of 2006, the
Company recognized earnings before special items of $22 million from sales of hotels in
unconsolidated joint ventures. The gains in 2006 had no related tax expense due to the
utilization of capital loss carry-forwards.
Net income was $145 million and EPS was $0.67 in the second quarter of 2007 compared
to net income of $680 million and EPS of $3.01 in the second quarter of 2006.
“Starwood’s strong second quarter results are indicative of our globally diversified revenue
streams, with worldwide System-wide REVPAR up 8.4%, fueled by our international
business where REVPAR grew by 13.1%," said Chairman and Interim CEO Bruce Duncan
in a statement. “Our pipeline now consists of approximately 105,000 rooms, of which over
70% are in the upper upscale and luxury segments and approximately half are outside of
North America. We remain committed to returning cash to shareholders and bought back
$471 million of our stock in the quarter."
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