WHITE PLAINS, N.Y., Oct. 25 /PRNewswire/ -- Starwood Hotels & Resorts
Worldwide, Inc. (NYSE: HOT) ("Starwood" or the "Company") today reported
results for the third quarter of 2001.
Third Quarter Financial Results
The terrorist attacks on September 11, 2001 had a significant impact on
the Company's third quarter results as lodging demand declined to
unprecedented levels, in the most important month of the quarter, across the
United States and internationally.
* REVPAR for Same-Store Owned Hotels in North America decreased 19.4% and
8.2% internationally when compared to 2000.
* Total Company EBITDA was $288 million compared to $406 million in 2000.
* Total Company EBITDA margin was approximately 30%.
* EPS was $0.14 compared to $0.50 in 2000.
* Occupancy rates at Same-Store Owned Hotels in North America for the
period between September 15, 2001 and September 30, 2001 decreased
approximately 32 percentage points to 48% and REVPAR decreased
approximately 49% when compared to the same period in 2000. From
October 1, 2001 to October 21, 2001, occupancy rates at these hotels
rebounded to approximately 66%, down 13 percentage points from the same
period of 2000 resulting in a REVPAR decline of approximately 27%. The
most recent week's occupancy level at these hotels was approximately
68%.
Third Quarter Ended September 30, 2001
EPS was $0.14 in the third quarter of 2001 compared to $0.50 in the
corresponding period in 2000, reflecting the dramatic reduction in travel
following the events of September 11 and including a $4 million restructuring
and other special charge. Total revenues were down 12% to $965 million
compared to the same period in 2000, resulting from the softening United
States economy and the unprecedented decline in industry-wide demand following
the September 11 attacks. Historically, the last three weeks of September
have been the strongest period in the third quarter. Operating income for the
third quarter of 2001 was $135 million compared to $268 million in the same
period of 2000 and income from continuing operations was $30 million in the
third quarter of 2001 compared to $103 million in the same period of 2000 due
to the significant decline in hotel operating results and increased
depreciation expense, offset in part by initial cost constraint measures,
reduced interest expense resulting from a reduction in interest rates and the
completion of certain financing transactions, and a reduction in the Company's
effective tax rate. Operating income for the third quarter of 2001 includes a
$4 million restructuring and other special charge primarily related to
severance and other costs incurred as part of the Company's immediate cost
constraint efforts after September 11.
Nine Months Ended September 30, 2001
For the nine months ended September 30, 2001, total revenues were
$3.1 billion compared to $3.2 billion in the same period in 2000 and EPS was
$0.99 compared to EPS of $1.32 in the corresponding period in 2000. Income
from continuing operations was $205 million in the nine months ended September
30, 2001 compared to $270 million in the same period of 2000.
Comments from the CEO
Barry S. Sternlicht, Chairman and CEO said, "The events of September 11th
stunned and horrified the entire world. They also changed the travel industry
and exacerbated already weak business travel trends. We are tremendously
proud of the extraordinary efforts of our 7,000 associates in our 22 New York
and Washington, DC area hotels who worked tirelessly to aid the relief
efforts."
"No-one was prepared for September 11th and its impact on the travel
industry or our business. Immediately after September 11th, we aggressively
focused on our operating cost structure, at headquarters, divisional and field
levels, and reduced our capital spending where possible. The impact of these
measures was not felt in the third quarter. Yet, the core strengths of our
enterprise are intact. We own an extraordinary global asset base with
important brands that are now trading at historic discounts to any estimated
asset value. Year-to-date, all of our brands posted meaningful increases in
guest satisfaction scores and overall market share gains and the nation's #1
frequent guest program, Starwood Preferred Guest, is gaining increasing
strength. We continued our rollout of our revenue management programs, our
global Six Sigma initiatives and broadband installation in partnership with
Cisco. We remain a growth company. Throughout the year, we have added
meaningful new resorts and hotels to enhance our global distribution including
the Westin Dublin, Westin Diplomat Resort & Spa, Westin Stonebriar Resort, St.
Regis Monarch Beach Resort, Sheraton St. Louis, W Lakeshore, W Midland and
soon, the W Times Square. The Company bears an enormous depreciation expense
which exceeds maintenance capital by approximately $300 million per year.
This is a reflection of the method in which this Company was created. During
these difficult times, we believe a more appropriate measure of relative value
is cash EPS and EBITDA as well as asset value."
Concluding, Mr. Sternlicht said, "The travel industry and Starwood are
being tested like never before. Operating trends continue to improve,
(reaching 70% on certain days recently) albeit at reduced rates of
improvement. It is extraordinarily difficult to predict future demand trends.
Looking forward, positives such as lower wage inflation, lower energy costs,
lower interest expense, and significant cutbacks in future hotel supply are
somewhat offset by likely higher healthcare and insurance costs. Nonetheless,
we have sufficient liquidity, the creativity and commitment of our management
team and great assets to weather this period and to emerge a stronger company
focused on growth and rapidly increasing shareholder value."
Operating Results
At the Company's Comparable Owned Hotels worldwide, revenues for the third
quarter of 2001 decreased $147 million to $765 million from $912 million in
2000 and EBITDA decreased $89 million to $216 million from $305 million in
2000. EBITDA at the Company's Comparable Owned Hotels internationally
decreased 6.8% to $82 million in the third quarter of 2001 when compared to
the same period in 2000 (a 3.9% decrease excluding the unfavorable effects of
foreign exchange). Operating results at Comparable Owned Hotels in North
America declined in the third quarter of 2001 when compared to 2000,
reflecting the impact of lower revenue per available room ("REVPAR") primarily
attributable to the September 11 attacks. Prior to the attacks, REVPAR at
Same-Store Owned Hotels in North America for the period beginning July 1, 2001
and ending September 10, 2001 decreased 9.8% when compared to the same period
in 2000. Although prior forecasts projected sell-out demand for the weeks
following September 11, the Company immediately developed operating plans
commensurate with the reduced demand levels. In the days and weeks following
September 11, the Company implemented contingency plans at all owned and
managed hotels in North America and internationally. Since the attacks,
Company-wide staffing levels have been reduced by approximately 10,000
full-time equivalent employees across all levels of the organization.
For the third quarter of 2001, REVPAR at Same-Store Owned Hotels worldwide
decreased 16.5% when compared to the same period in 2000 as a result of a
decline in occupancy rates of 930 basis points to 65.5% and a decline in
average daily rate ("ADR") of 4.7% from the prior year. REVPAR at Same-Store
Owned Hotels in North America decreased 19.4% to $93.69 when compared to the
same period in 2000 as a result of a decrease in occupancy rates to 66.3% from
77.3% in the prior year, while ADR decreased 6.1% to $141.23. The decrease in
ADR was primarily attributable to the mix of customers rather than discounted
room rates. The Company's results in North America were negatively impacted
by the significant drop in industry-wide lodging demand, resulting primarily
from the September 11 attacks, particularly impacting New York, where the
Company has seven owned hotels with approximately 3,900 rooms.
Internationally, Same-Store Owned Hotel REVPAR decreased 8.2%.
EBITDA margins at Comparable Owned Hotels worldwide decreased 520 basis
points to 28.2% in the third quarter of 2001 when compared to the same period
in 2000. In North America, EBITDA margins at Comparable Owned Hotels
decreased 750 basis points to 24.9% in the third quarter of 2001 when compared
to the same period in 2000. Internationally, EBITDA margins at Comparable
Owned Hotels decreased slightly to 35.8% in the third quarter of 2001 when
compared to 36.1% in the same period of 2000.
During the third quarter of 2001, the Company added 16 management and
franchise contracts with approximately 3,800 rooms. During the nine months
ended September 30, 2001, the Company added 42 management and franchise
contracts with approximately 8,300 rooms.
The Company is currently selling vacation ownership interest ("VOI")
inventory at nine resorts and engaged in pre-opening sales at three others.
Three new build projects are currently underway including Sheraton's Mountain
Vista in Avon, Colorado; Westin Mission Hills Resort Villas in Rancho Mirage,
California; and Westin Ka'anapali Ocean Resort Villas in Maui, Hawaii. Due to
the events of September 11 and subsequent decrease in travel, Starwood
Vacation Ownership, Inc. experienced a decrease in tour flow at those resorts
considered to be fly-to markets. Sales at destinations traditionally
considered regional drive-to markets, including Myrtle Beach and Palm Springs,
were less affected.
Dispositions
The Company continues to review its portfolio for disposition candidates,
including its CIGA portfolio. However, in light of the current environment,
the timing of these sales has likely been delayed to 2002.
Capital
During the third quarter of 2001, the Company invested approximately
$136 million for capital, primarily at owned hotel assets and VOI
construction. Most of this investment spend included the repositioning of the
Midland Hotel to the W Chicago-City Center (390 rooms), which is now open,
conversion of the Days Inn Chicago to the W Chicago-Lakeshore (556 rooms),
which partially opened in October 2001, development of the W New York-Times
Square (509 rooms, opening late fourth quarter) as well as the development of
The St. Regis Museum Tower in San Francisco (269 rooms and 102 condominiums).
Financing
On September 30, 2001, the Company had total debt of $5.507 billion and
cash and cash equivalents of $204 million.
At the end of the third quarter of 2001, the Company's debt was
approximately 65% fixed rate and 35% floating rate and its weighted average
maturity was 4.7 years. As of September 30, 2001, the Company had cash and
availability under its domestic and international revolving credit facilities
of approximately $800 million and the Company's debt had a weighted average
interest rate of 5.67%. The Company has had discussions with its primary
lenders and expects to amend its bank facilities to provide for covenant
relief as may be necessary. The Company continues to monitor the bond market
and, in light of the 2003 maturities of existing bank facilities, expects to
access the bond markets in 2002.
Share Repurchase
During the third quarter, the Company repurchased 1,995,800 shares at a
total cost of approximately $54 million. At September 30, 2001, Starwood had
approximately 201 million shares outstanding (including partnership units and
exchangeable preferred shares).
Dividend
In October 2001, Starwood Hotels & Resorts paid a third quarter dividend of
$0.20 per share, representing a 16% increase over the prior year quarterly
dividend.
Future Performance
All comments in the following paragraphs and certain comments in this
release above are deemed to be forward-looking statements. These statements
reflect expectations of the Company's performance given its current base of
assets and its current understanding of external economic and political
environments. Actual results may differ materially.
Given the current uncertain travel environment and a generally weak
economic environment around the world, it is impossible to predict results
with any degree of precision.
* As a result of the Company's cost reduction efforts, the Company will
record significant severance charges in the fourth quarter of 2001. In
addition, the Company is evaluating the carrying value of certain
assets for potential non-cash impairment charges in the fourth quarter
of 2001. Such restructuring and other special charges could aggregate
$75 million to $150 million.
* Fourth quarter 2001 Worldwide Same-Store REVPAR is now expected to
decline approximately 25%-30% from the same period in 2000 resulting in
EBITDA of approximately $200-225 million and due to the large fixed
non-cash charge for depreciation, a likely small EPS loss, before
restructuring and special charges.
* Assuming an economic recovery in the second half of 2002 resulting in
REVPAR flat to down slightly from 2001 or declining approximately 15%
from 2000 levels, the Company would expect EBITDA of approximately
$1.25-$1.3 billion and EPS of approximately $1.00-$1.20, including $0.24
per share from the new accounting rules pertaining to goodwill and
intangible assets.
* The Company is targeting capital expenditures in 2002 of
$200-$250 million, including maintenance capital expenditures.
Further, the Company is evaluating the timing and level of its
dividend.
Starwood will be conducting a conference call to discuss the third quarter
financial results at 10:30 a.m. (EDT) today. The conference call will be
available through simultaneous webcast in the Investor Relations/Press
Releases section of the Company's website at http://www.starwood.com. A
replay of the conference call will also be available from 1:30 p.m. (EDT)
today through 8:00 p.m. (EDT) Thursday, November 1, on both the Company's
website and via telephone replay at 719-457-0820 (access code: 568399).
All references to EPS reflect earnings per diluted share from continuing
operations. All references to Comparable Owned Hotels reflect the Company's
owned, leased and consolidated joint venture hotels, excluding hotels sold
during 2000 and 2001 and hotels without comparable prior year results. All
references to Same-Store Owned Hotels reflect the Company's owned, leased and
consolidated joint venture hotels, excluding hotels under significant
renovation or for which comparable results are not available.
Starwood Hotels & Resorts Worldwide, Inc. is one of the leading hotel and
leisure companies in the world with more than 725 properties in 80 countries
and 120,000 employees at its owned and managed properties. With
internationally renowned brands, Starwood is a fully integrated owner,
operator and franchiser of hotels and resorts including: St. Regis, The
Luxury Collection, Sheraton, Westin, Four Points by Sheraton and W brands, as
well as Starwood Vacation Ownership, Inc., one of the premier developers and
operators of high quality vacation interval ownership.
(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. General
economic, business and financing conditions, cyclicality of the real estate
and the hotel and leisure business, domestic and international political
conditions, competition, governmental and regulatory actions and other
circumstances and uncertainties may affect future results, performance and
achievements. These risks and uncertainties are presented in detail in our
filings with the Securities and Exchange Commission. Although we believe the
expectations reflected in such forward-looking statements are based upon
reasonable assumptions, we can give no assurance that our expectations will be
attained or that results will not materially differ. We undertake no
obligation to publicly update or revise any forward-looking statement, whether
as a result of new information, future events or otherwise.)
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
(In millions, except per Share data)
Three Months Ended Nine Months Ended
September 30, September 30,
2001 2000 % Variance 2001 2000 % Variance
Revenues
$802 $926 (13)% Owned, leased and $2,597 $2,740 (5)%
consolidated joint
venture hotels
163 176 (7) Other hotel and 492 500 (2)
leisure(a)
965 1,10 (12) 3,089 3,240 (5)
Costs and Expenses
576 616 6 Owned, leased and 1,790 1,834 2
consolidated joint
venture hotels
116 97 (20) Selling, general, 323 312 (4)
administrative and
other(b)
4 -- -- Restructuring and 3 -- --
other special charges,
net
109 95 (15) Depreciation 321 287 (12)
25 26 4 Amortization 70 69 (1)
830 834 -- 2,507 2,502 --
135 268 (50) Operating income 582 738 (21)
(89) (104) 14 Interest expense, (281) (317) 11
net of interest
income
(1) (1) -- Gain (loss) on asset -- 1 --
dispositions, net
45 163 (72) 301 422 (29)
(14) (54) 74 Income tax expense (93) (145) 36
(1) (6) 83 Minority equity in (3) (7) 57
net income
30 103 (71) Income from 205 270 (24)
continuing operations
Discontinued operations:
-- -- -- Gain on dispositions, -- 5 --
net of tax
-- -- -- Extraordinary item, (6) (3) (100)
net of tax
$30 $103 (71)% Net income $199 $272 (27)%
Earnings Per Share - Basic
$0.15 $0.51 (71)% Continuing $1.02 $1.34 (24)%
operations
-- -- -- Discontinued -- 0.02 --
operations
-- -- -- Extraordinary item (0.03) (0.01) (200)
$0.15 $0.51 (71)% Net income $0.99 $1.35 (27)%
Earnings Per Share - Diluted
$0.14 $0.50 (72)% Continuing $0.99 $1.32 (25)%
operations
-- -- -- Discontinued -- 0.02 --
operations
-- -- -- Extraordinary item (0.03) (0.01) (200)
$0.14 $0.50 (72)% Net income $0.96 $1.33 (28)%
200 203 1% Weighted average 201 202 --
number of Shares
206 207 -- Weighted average 207 205 (1)%
number of Shares
assuming dilution
Reconciliation of Operating Income to EBITDA(c)
$135 $268 (50)% Operating income $582 $738 (21)%
116 101 15 Depreciation(d) 341 304 12
25 26 (4) Amortization(d) 70 69 1
6 6 -- Interest expense of 19 16 19
unconsolidated joint
ventures
2 5 (60) Interest income 9 14 (36)
4 -- -- Restructuring and 3 -- --
other special
charges, net
$288 $406 (29)% EBITDA $1,024 $1,141 (10)%
(a) Other hotel and leisure revenues include management and franchise
fees earned from third party hotel owners, the Company's interest in
unconsolidated joint ventures and the sale and financing of VOIs.
(b) Selling, general, administrative and other expenses includes the cost
of sales of VOIs and other costs of timeshare operations.
(c) EBITDA is defined as income before interest expense, income tax
expense and depreciation and amortization. Non-recurring items and
gains and losses from sales of real estate and investments are also
excluded from EBITDA as these items do not impact operating results
on a recurring basis. Management considers EBITDA to be one measure
of the cash flows from operations of the Company before debt service
that provides a relevant basis for comparison, and EBITDA is
presented to assist investors in analyzing the performance of the
Company. This information should not be considered as an alternative
to any measure of performance as promulgated under accounting
principles generally accepted in the United States, nor should it be
considered as an indicator of the overall financial performance of
the Company. The Company's calculation of EBITDA may be different
from the calculation used by other companies and, therefore,
comparability may be limited.
(d) Includes depreciation and amortization expense of unconsolidated
joint ventures.
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
UNAUDITED CONSOLIDATED BALANCE SHEET INFORMATION
(In millions)
September 30, 2001
Total assets $12,682
Cash and cash equivalents $204
Total debt $5,507
Shares outstanding(a) 201
(a) Shares outstanding include partnership units and exchangeable
preferred shares.
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Hotel Results - Same Store (1)
For the Three Months Ended September 30, 2001
WORLDWIDE NORTH AMERICA
2001 2000 Var. 2001 2000 Var.
157 Hotels 111 Hotels
OWNED HOTELS
REVPAR ($) 99.03 118.56 -16.5% 93.69 116.29 -19.4%
ADR ($) 151.14 158.59 -4.7% 141.23 150.46 -6.1%
OCCUPANCY(%) 65.5% 74.8% -9.3 66.3% 77.3% -11.0
67 43
SHERATON
REVPAR 84.14 103.94 -19.0% 87.62 109.76 -20.2%
ADR ($) 131.18 141.88 -7.5% 131.93 141.67 -6.9%
OCCUPANCY(%) 64.1% 73.3% -9.2 66.4% 77.5% -11.1
35 23
WESTIN
REVPAR ($) 103.38 117.23 -11.8% 92.39 108.77 -15.1%
ADR ($) 152.13 152.40 -0.2% 136.17 139.11 -2.1%
OCCUPANCY(%) 68.0% 76.9% -8.9 67.8% 78.2% -10.4
14 5
LUXURY COLLECTION
REVPAR ($) 225.13 243.69 -7.6% 164.54 208.96 -21.3%
ADR ($) 356.95 343.97 3.8% 287.65 298.44 3.6%
OCCUPANCY(%) 63.1% 70.8% -7.7 57.2% 70.0% -12.8
10 10
W
REVPAR($) 124.12 165.56 -25.0% 124.12 165.56 -25.0%
ADR($) 187.19 213.43 -12.3% 187.19 213.43 -12.3%
OCCUPANCY(%) 66.3% 77.6% -11.3 66.3% 77.6% -11.3
31 30
OTHER
REVPAR($) 77.40 97.14 -20.3% 79.71 99.03 -19.5%
ADR ($) 116.49 127.35 -8.5% 120.78 128.56 -6.1%
OCCUPANCY(%) 66.4% 76.3% -9.9 66.0% 77.0% -11.0
INTERNATIONAL(2)
2001 2000 Var.
46 HOTELS
OWNED HOTELS
REVPAR($) 115.21 125.47 -8.2%
ADR($) 182.75 187.08 -2.3%
OCCUPANCY(%) 63.0% 67.1% -4.1
24
SHERATON
REVPAR ($) 76.87 91.82 -16.3%
ADR ($) 129.44 142.41 -9.1%
OCCUPANCY(%) 59.4% 64.5% -5.1
12
WESTIN
REVPAR ($) 145.87 150.51 -3.1%
ADR ($) 213.33 209.15 2.0%
OCCUPANCY(%) 68.4% 72.0% -3.6
9
LUXURY COLLECTION
REVPAR ($) 289.67 280.81 3.2%
ADR ($) 417.85 391.46 6.7%
OCCUPANCY(%) 69.3% 71.7% -2.4
W
REVPAR($)
ADR($)
OCCUPANCY(%)
1
OTHER
REVPAR($) 51.95 76.39 -32.0%
ADR ($) 72.78 112.29 -35.2%
OCCUPANCY(%) 71.4% 68.0% 3.4
(1)Hotel Results exclude 3 hotels under significant renovation or without
comparable results, 5 hotels without prior year results and 6 hotels
sold during 2000 and 2001
(2) See next page for breakdown by division.
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Hotel Results - Same Store (1)
For the Three Months Ended September 30, 2001
EUROPE LATIN AMERICA
2001 2000 Var. 2001 2000 Var.
30 Hotels 13 Hotels
OWNED HOTELS
REVPAR($) 166.71 174.00 -4.2% 60.60 71.93 -15.8%
ADR($) 241.46 234.10 3.1% 112.88 123.65 -8.7%
OCCUPANCY(%) 69.0% 74.3% -5.3 53.7% 58.2% -4.5
12 10
SHERATON
REVPAR($) 101.67 113.47 -10.4% 59.13 74.07 -20.2%
ADR($) 148.61 152.75 -2.7% 114.83 129.12 -11.1%
OCCUPANCY(%) 68.4% 74.3% -5.9 51.5% 57.4% -5.9
9 5
WESTIN
REVPAR($) 177.60 191.02 -7.0% 68.02 61.74 10.2%
ADR($) 254.27 249.71 1.8% 105.02 99.53 5.5%
OCCUPANCY(%) 69.8% 76.5% -6.7 64.8% 62.0% 2.8
9
LUXURY COLLECTION
REVPAR($) 289.67 280.81 3.2%
ADR ($) 417.85 391.46 6.7%
OCCUPANCY(%) 69.3% 71.7% -2.4
OTHER
REVPAR($)
ADR ($)
OCCUPANCY(%)
ASIA PACIFIC
2001 2000 Var.
3 Hotels
OWNED HOTELS
REVPAR($) 60.94 87.05 -30.0%
ADR($) 91.31 135.42 -32.6%
OCCUPANCY(%) 66.7% 64.3% 2.4
2
SHERATON
REVPAR($) 67.84 95.14 -28.7%
ADR($) 107.40 154.85 -30.6%
OCCUPANCY(%) 63.2% 61.4% 1.8
WESTIN
REVPAR($)
ADR($)
OCCUPANCY(%)
LUXURY COLLECTION
REVPAR($)
ADR($)
OCCUPANCY(%)
1
OTHER
REVPAR($) 51.95 76.39 -32.0%
ADR ($) 72.78 112.29 -35.2%
OCCUPANCY(%) 71.4% 68.0% 3.4
(1) Hotel Results exclude 3 hotels under significant renovation or without
comparable results, 5 hotels without prior year results and 6 hotels
sold during 2000 and 2001.
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Hotel Results - Comparable(1)
For the Three Months Ended September 30, 2001
UNAUDITED ($ thousands)
WORLDWIDE NORTH AMERICA
2001 2000 Var. 2001 2000 Var.
160 Hotels 112 Hotels
OWNED HOTELS
TOTAL REVENUE 765,308 911,572 -16.0% 535,464 666,672 -19.7%
TOTAL EBITDA 215,913 304,543 -29.1% 133,568 216,235 -38.2%
MARGIN % 28.2% 33.4% -5.2 24.9% 32.4% -7.5
69 43
SHERATON
REVENUE 307,441 369,456 -16.8% 206,031 253,360 -18.7%
EBITDA 91,928 127,056 -27.6% 59,461 88,326 -32.7%
MARGIN % 29.9% 34.4% -4.5 28.9% 34.9% -6.0
35 23
WESTIN
REVENUE 206,752 234,941 -12.0% 144,355 172,179 -16.2%
EBITDA 54,013 72,934 -25.9% 32,705 50,562 -35.3%
MARGIN % 26.1% 31.0% -4.9 22.7% 29.4% -6.7
14 5
LUXURY COLLECTION
REVENUE 111,838 124,013 -9.8% 50,232 64,366 -22.0%
EBITDA 35,007 40,883 -14.4% 6,273 14,179 -55.8%
MARGIN % 31.3% 33.0% -1.7 12.5% 22.0% -9.5
10 10
W
REVENUE 55,371 73,718 -24.9% 55,371 73,718 -24.9%
EBITDA 12,179 24,952 -51.2% 12,179 24,952 -51.2%
MARGIN % 22.0% 33.8% -11.8 22.0% 33.8% -11.8
32 31
OTHER
REVENUE 83,906 109,444 -23.3% 79,475 103,049 -22.9%
EBITDA 22,786 38,718 -41.1% 22,950 38,216 -39.9%
MARGIN % 27.2% 35.4% -8.2 28.9% 37.1% -8.2
INTERNATIONAL(2)
2001 2000 Var.
48 Hotels
OWNED HOTELS
TOTAL REVENUE 229,844 244,900 -6.1%
TOTAL EBITDA 82,345 88,307 -6.8%
MARGIN % 35.8% 36.1% -0.3
26
SHERATON
REVENUE 101,410 116,096 -12.6%
EBITDA 32,467 38,730 -16.2%
MARGIN % 32.0% 33.4% -1.4
12
WESTIN
REVENUE 62,397 62,762 -0.6%
EBITDA 21,308 22,371 -4.8%
MARGIN % 34.1% 35.6% -1.5
9
LUXURY COLLECTION
REVENUE 61,606 59,647 3.3%
EBITDA 28,734 26,704 7.6%
MARGIN % 46.6% 44.8% 1.8
W
REVENUE
EBITDA
MARGIN %
1
OTHER
REVENUE 4,431 6,395 -30.7%
EBITDA (164) 502 -132.7%
MARGIN % -3.7% 7.8% -11.5
(1) Hotel Results exclude 5 hotels without prior year results and 6 hotels
sold during 2000 and 2001.
(2) See next page for breakdown by division.
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Hotel Results - Comparable (1)
For the Three Months Ended September 30, 2001
UNAUDITED ($ thousands)
EUROPE LATIN AMERICA
2001 2000 Var. 2001 2000 Var.
30 Hotels 14 Hotels
OWNED HOTELS
TOTAL REVENUE 164,277 168,774 -2.7% 49,850 56,762 -12.2%
TOTAL EBITDA 61,619 62,971 -2.1% 17,931 20,653 -13.2%
MARGIN % 37.5% 37.3% 0.2 36.0% 36.4% -0.4
12 11
SHERATON
REVENUE 50,582 56,026 -9.7% 39,542 47,101 -16.0%
EBITDA 14,332 15,924 -10.0% 15,176 18,625 -18.5%
MARGIN % 28.3% 28.4% -0.1 38.4% 39.5% -1.1
9 3
WESTIN
REVENUE 52,089 53,101 -1.9% 10,308 9,661 6.7%
EBITDA 18,553 20,343 -8.8% 2,755 2,028 35.8%
MARGIN % 35.6% 38.3% -2.7 26.7% 21.0% 5.7
9
LUXURY COLLECTION
REVENUE 61,606 59,647 3.3%
EBITDA 28,734 26,704 7.6%
MARGIN % 46.6% 44.8% 1.8
OTHER
REVENUE
EBITDA
MARGIN %
ASIA PACIFIC
2001 2000 Var.
4 Hotels
OWNED HOTELS
TOTAL REVENUE 15,717 19,364 -18.8%
TOTAL EBITDA 2,795 4,684 -40.3%
MARGIN % 17.8% 24.2% -6.4
3
SHERATON
REVENUE 11,286 12,969 -13.0%
EBITDA 2,959 4,182 -29.2%
MARGIN % 26.2% 32.2% -6.0
WESTIN
REVENUE
EBITDA
MARGIN %
LUXURY COLLECTION
REVENUE
EBITDA
MARGIN %
1
OTHER
REVENUE 4,431 6,395 -30.7%
EBITDA (164) 502 -132.7%
MARGIN % -3.7% 7.8% -11.5
(1) Hotel Results exclude 5 hotels without prior year results and 6 hotels
sold during 2000 and 2001.
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Hotel Results - Same Store (1)
For the Nine Months Ended September 30, 2001
WORLDWIDE NORTH AMERICA
2001 2000 Var. 2001 2000 Var.
155 Hotels 110 Hotels
OWNED HOTELS
REVPAR($) 107.85 116.11 -7.1% 105.27 114.35 -7.9%
ADR($) 160.32 160.43 -0.1% 154.86 154.84 0.0%
OCCUPANCY(%) 67.3% 72.4% -5.1 68.0% 73.9% -5.9
66 42
SHERATON
REVPAR($) 91.00 101.26 -10.1% 94.99 105.21 -9.7%
ADR($) 139.04 143.34 -3.0% 141.75 144.07 -1.6%
OCCUPANCY(%) 65.5% 70.6% -5.1 67.0% 73.0% -6.0
35 23
WESTIN
REVPAR($) 116.21 119.01 -2.4% 107.06 110.17 -2.8%
ADR($) 161.14 157.88 2.1% 147.85 144.79 2.1%
OCCUPANCY(%) 72.1% 75.4% -3.3 72.4% 76.1% -3.7
14 5
LUXURY COLLECTION
REVPAR($) 238.64 243.14 -1.9% 241.00 260.13 -7.4%
ADR($) 349.90 337.86 3.6% 357.35 347.75 2.8%
OCCUPANCY(%) 68.2% 72.0% -3.8 67.4% 74.8% -7.4
10 10
W
REVPAR($) 139.89 158.42 -11.7% 139.89 158.42 -11.7%
ADR($) 209.47 211.36 -0.9% 209.47 211.36 -0.9%
OCCUPANCY(%) 66.8% 75.0% -8.2 66.8% 75.0% -8.2
30 30
OTHER
REVPAR($) 79.29 87.99 -9.9% 79.29 87.99 -9.9%
ADR($) 12.54 122.78 0.6% 123.54 122.78 0.6%
OCCUPANCY(%) 64.2% 71.7% -7.5 64.2% 71.7% -7.5
INTERNATIONAL(2)
2001 2000 Var.
45 Hotels
OWNED HOTELS
REVPAR($) 116.10 121.72 -4.6%
ADR($) 178.59 180.04 -0.8%
OCCUPANCY(%) 65.0% 67.6% -2.6
24
SHERATON
REVPAR($) 82.78 93.16 -11.1%
ADR($) 133.00 141.69 -6.1%
OCCUPANCY(%) 62.2% 65.7% -3.5
12
WESTIN
REVPAR($) 151.47 153.86 -1.6%
ADR($) 213.45 211.97 0.7%
OCCUPANCY(%) 71.0% 72.6% -1.6
9
LUXURY COLLECTION
REVPAR($) 235.95 223.60 5.5%
ADR($) 341.59 325.46 5.0%
OCCUPANCY(%) 69.1% 68.7% 0.4
W
REVPAR($)
ADR($)
OCCUPANCY(%)
OTHER
REVPAR($)
ADR($)
OCCUPANCY(%)
(1)Hotel Results exclude 3 hotels under significant renovation or without
comparable results, 7 hotels without prior year results and 9 hotels
sold during 2000 and 2001.
(2) See next page for breakdown by division.
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Hotel Results - Same Store (1)
For the Nine Months Ended September 30, 2001
EUROPE LATIN AMERICA
2001 2000 Var. 2001 2000 Var.
30 Hotels 13 Hotels
OWNED HOTELS
REVPAR($) 150.66 151.00 -0.2% 76.97 87.69 -12.2%
ADR($) 218.50 212.62 2.8% 129.65 139.50 -7.1%
OCCUPANCY(%) 69.0% 71.0% -2.0 59.4% 62.9% -3.5
12 10
SHERATON
REVPAR($) 100.65 104.29 -3.5% 70.96 83.84 -15.4%
ADR($) 146.55 147.48 -0.6% 126.12 137.10 -8.0%
OCCUPANCY(%) 68.7% 70.7% -2.0 56.3% 61.1% -4.8
9 3
WESTIN
REVPAR($) 169.61 175.80 -3.5% 107.24 106.07 1.1%
ADR($) 244.73 239.82 2.0% 142.97 149.36 -4.3%
OCCUPANCY(%) 69.3% 73.3% -4.0 75.0% 71.0% 4.0
9
LUXURY COLLECTION
REVPAR($) 235.95 223.60 5.5%
ADR($) 341.69 325.46 5.0%
OCCUPANCY(%) 69.1% 68.7% 0.4
ASIA PACIFIC
2001 2000 Var.
2 Hotels
OWNED HOTELS
REVPAR($) 72.37 96.25 -24.8%
ADR($) 108.03 138.96 -22.3%
OCCUPANCY(%) 67.0% 69.3% -2.3
2
SHERATON
REVPAR($) 72.37 96.25 -24.8%
ADR($) 108.03 138.96 -22.3%
OCCUPANCY(%) 67.0% 69.3% -2.3
WESTIN
REVPAR($)
ADR($)
OCCUPANCY(%)
LUXURY COLLECTION
REVPAR($)
ADR($)
OCCUPANCY(%)
(1) Hotel Results exclude 3 hotels under significant renovation or without
comparable results, 7 hotels without prior year results and 9 hotels
sold during 2000 and 2001.
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Hotel Results - Comparable (1)
For the Nine Months Ended September 30, 2001
UNAUDITED ($ thousands)
WORLDWIDE NORTH AMERICA
2001 2000 Var. 2001 2000 Var.
158 Hotels 111 Hotels
OWNED HOTELS
TOTAL REVENUE 2,499,286 2,693,134 -7.2% 1,851,725 2,017,259 -8.2%
TOTAL EBITDA 790,721 896,875 -11.8% 563,961 662,903 -14.9%
MARGIN % 31.6% 33.3% -1.7 30.5% 32.9% -2.4
68 42
SHERATON
REVENUE 987,728 1,087,620 -9.2% 673,091 735,814 -8.5%
EBITDA 311,418 364,670 -14.6% 209,829 248,202 -15.5%
MARGIN % 31.5% 33.5% -2.0 31.2% 33.7% -2.5
35 23
WESTIN
REVENUE 716,835 735,913 -2.6% 523,277 544,322 -3.9%
EBITDA 229,857 240,610 -4.5% 159,594 171,815 -7.1%
MARGIN % 32.1% 32.7% -0.6 30.5% 31.6% -1.1
14 5
LUXURY COLLECTION
REVENUE 364,505 377,011 -3.3% 225,139 244,533 -7.9%
EBITDA 124,570 127,318 -2.2% 69,662 78,609 -11.4%
MARGIN % 34.2% 33.8% 0.4 30.9% 32.1% -1.2
10 10
W
REVENUE 188,396 212,194 -11.2% 188,396 212,184 -11.2%
EBITDA 55,504 71,434 -22.3% 55,504 71,434 -22.3%
MARGIN % 29.5% 33.7% -4.2 29.5% 33.7% -4.2
31 31
OTHER
REVENUE 241,822 280,406 -13.8% 241,822 280,406 -13.8%
EBITDA 69,372 92,843 -25.3% 69,372 92,943 -25.3%
MARGIN % 28.7% 33.1% -4.4 28.7% 33.1% -4.4
INTERNATIONAL (2)
2001 2000 Var.
47 Hotels
OWNED HOTELS
TOTAL REVENUE 647,561 675,875 -4.2%
TOTAL EBITDA 226,760 233,972 -3.1%
MARGIN % 35.0% 34.6% 0.4
26
SHERATON
REVENUE 314,637 351,806 -10.6%
EBITDA 101,589 116,468 -12.8%
MARGIN % 32.3% 33.1% -0.8
12
WESTIN
REVENUE 193,558 191,591 1.0%
EBITDA 70,263 68,795 2.1%
MARGIN % 36.3% 35.9% 0.4
9
LUXURY COLLECTION
REVENUE 139,366 132,478 5.2%
EBITDA 54,908 48,709 12.7%
MARGIN % 39.4% 36.8% 2.6
W
REVENUE
EBITDA
MARGIN %
OTHER
REVENUE
EBITDA
MARGIN %
(1)Hotel Results exclude 7 hotels without prior year results and 9 hotels
sold during 2000 and 2001.
(2) See next page for breakdown by division.
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Hotel Results - Comparable (1)
For the Nine Months Ended September 30, 2001
UNAUDITED ($ thousands)
EUROPE LATIN AMERICA
2001 2000 Var. 2001 2000 Var.
30 Hotels 14 Hotels
OWNED HOTELS
TOTAL REVENUE 436,822 432,439 1.0% 178,834 198,851 -10.1%
TOTAL EBITDA 145,514 139,339 4.4% 73,288 81,083 -9.6%
MARGIN % 33.3% 32.2% 1.1 41.0% 40.8% 0.2
12 11
SHERATON
REVENUE 149,081 153,980 -3.2% 133,651 153,241 -12.8%
EBITDA 40,129 40,897 -1.9% 53,502 62,021 -13.7%
MARGIN % 26.9% 26.6% 0.3 40.0% 40.5% -0.5
9 3
WESTIN
REVENUE 148,375 145,981 1.6% 45,183 45,610 -0.9%
EBITDA 50,477 49,733 1.5% 19,786 19,062 3.8%
MARGIN % 34.0% 34.1% -0.1 43.8% 41.8% 2.0
9
LUXURY COLLECTION
REVENUE 139,366 132,478 5.2%
EBITDA 54,908 48,709 12.7%
MARGIN % 39.4% 36.8% 2.6
ASIA PACIFIC
2001 2000 Var.
3 Hotels
OWNED HOTELS
TOTAL REVENUE 31,905 44,585 -28.4%
TOTAL EBITDA 7,958 13,550 -41.3%
MARGIN % 24.9% 30.4% -5.5
3
SHERATON
REVENUE 31,905 44,585 -28.4%
EBITDA 7,958 13,550 -41.3%
MARGIN % 24.9% 30.4% -5.5
WESTIN
REVENUE
EBITDA
MARGIN %
LUXURY COLLECTION
REVENUE
EBITDA
MARGIN %
(1) Hotel Results exclude 7 hotels without prior year results and 9 hotels
sold during 2000 and 2001.
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Debt Portfolio Summary
As of September 30, 2001
UNAUDITED (in millions)
Avg
Debt Interest Terms Balance % of Interest Maturity
Portfolio Rate (in years)
Floating Rate
Five-year term
loan LIBOR + 62.5 $800 14% 3.26% 1.2
Term loan
add-on LIBOR + 125 423 8% 3.88% 1.4
Revolving
credit
facility LIBOR + 62.5 622 11% 3.26% 1.4
Senior credit
facility 1,845 33% 3.40% 1.3
Senior secured
notes facility
- Tranche II
loans LIBOR + 275 500 9% 5.38% 1.4
Mortgages and
other Various 524 10% 5.27% 1.8
Interest rate
swaps (950) -17% 3.35%
Total Floating 1,919 35% 4.45% 1.4
Fixed Rate Debt
Sheraton Holding
public debt 1,296 24% 7.08% 9.5
Convertible debt
- Series A & B(1) 504 9% 2.35% 2.2
Mortgages
and other 838 15% 7.35% 10.1
Interest rate
swaps 950 17% 6.50%
Total Fixed 3,588 65% 6.32% 8.3
Total Debt $5,507 100% 5.67% 4.7
Maturity
< l Year $ 592
2 - 3 Years 3,003
4 - 5 Years 568
> 5 Years 1,344
Total $ 5,507
(1) Maturity date reflects the earlier of the first put date or the
maturity date of the credit facility which would be used to refinance
the amount put to the Company.
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Hotels under Renovation and/or without Comparable Results
& Other Selected Items
For the Three Months Ended September 30, 2001
Properties under Significant Renovation during the 3rd Quarter 2001
Property Location
Days Inn Chicago Lakeshore Drive Chicago, IL
Other Properties without Comparable Results
Property Location
Sheraton Macuto Resort La Guaira, Venezuela
Sheraton Royal Denarau Resort Nadi, Fiji
Sheraton Goldener Hirsch Salzburg, Austria
Westin Bristol Vienna, Austria
Sheraton Imperial Vienna, Austria
Toronto Sheraton Centre Toronto, Canada
Westin Dublin Dublin, Ireland
Selected Balance Sheet and Cash Flow Items:
Cash and cash equivalents $ 204
Third quarter dividend per share $ 0.20
Capital expenditures $ 136
Debt level $ 5,507
Shares Repurchased (avg. price $27.04/sh(1)) 1,995,800
(1) Excludes commissions paid.
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Summary of Portfolio by Properties & Rooms
As of September 30, 2001
PROPERTIES
Lux. Col./
Sheraton Westin St. Regis Four Points
Owned, leased
& consolidated JVs 68 37 18 7
Unconsolidated
joint ventures 29 9 3 2
Equity interest
properties 97 46 21 9
Managed
(third-party owned) 134 41 23 20
Franchised, represented
& referral 155 27 14 118
Total 386 114 58 147
PROPERTIES
W Other Total
Owned, leased & consolidated JVs 10 25 165
Unconsolidated joint ventures -- 1 44
Equity interest properties 10 26 209
Managed (third-party owned) 4 3 225
Franchised, represented & referral -- 1 315
Total 14 30 749
ROOMS
Lux. Col./
Sheraton Westin St. Regis Four Points
Owned, leased &
consolidated JVs 27,297 14,085 3,729 1,894
Unconsolidated joint
ventures 11,723 3,763 671 328
Equity interest
properties 39,020 17,848 4,400 2,222
Managed
(third-party owned) 44,890 20,406 5,258 3,734
Franchised, represented
& referral 45,582 8,677 2,188 21,866
Total 129,492 46,931 11,846 27,822
ROOMS
W Other Total
Owned, leased &
consolidated JVs 3,325 6,445 56,775
Unconsolidated joint ventures -- 132 16,617
Equity interest properties 3,325 6,577 73,392
Managed (third-party owned) 596 971 75,855
Franchised, represented
& referral -- 491 78,804
Total 3,921 8,039 228,051
SOURCE Starwood Hotels & Resorts Worldwide, Inc.
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Related links:
http://www.starwoodlodging.com
Company News On-Call:
http://www.prnewswire.com/comp/443150.html
CONTACT:
Dan Gibson of Starwood Hotels & Resorts
Worldwide, Inc., +1-914-640-8175
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