Starwood Reports First Quarter 2014 Results

STAMFORD, Conn.--()--Starwood Hotels & Resorts Worldwide, Inc. (NYSE:HOT) today reported first quarter 2014 financial results.

First Quarter 2014 Highlights

  • Excluding special items, EPS from continuing operations was $0.63. Including special items, EPS from continuing operations was $0.71.
  • Adjusted EBITDA was $281 million.
  • Excluding special items, income from continuing operations was $122 million. Including special items, income from continuing operations was $136 million.
  • Worldwide Systemwide REVPAR for Same-Store Hotels increased 6.3% in constant dollars (5.0% in actual dollars) compared to 2013. Systemwide REVPAR for Same-Store Hotels in North America increased 7.1% in constant dollars (6.4% in actual dollars).
  • Management fees, franchise fees and other income increased 14.3% compared to 2013.
  • Worldwide Same-Store Company-Operated gross operating profit margins increased approximately 150 basis points compared to 2013.
  • Worldwide REVPAR for Starwood Same-Store Owned Hotels increased 4.7% in constant dollars (2.9% in actual dollars) compared to 2013.
  • Margins at Starwood Same-Store Owned Hotels Worldwide increased approximately 150 basis points compared to 2013.
  • Earnings from Starwood’s vacation ownership and residential business decreased approximately $64 million compared to 2013, including a $48 million decrease in earnings from the St. Regis Bal Harbour residential project which is substantially sold out.
  • During the quarter, the Company signed 28 hotel management and franchise contracts, representing approximately 6,000 rooms, and opened 10 hotels and resorts with approximately 1,900 rooms.

First Quarter 2014 Earnings Summary

Starwood Hotels & Resorts Worldwide, Inc. (“Starwood” or the “Company”) today reported EPS from continuing operations for the first quarter of 2014 of $0.71 compared to $0.73 in the first quarter of 2013. Excluding special items, EPS from continuing operations was $0.63 for the first quarter of 2014 compared to $0.76 in the first quarter of 2013. Special items in the first quarter of 2014, which totaled a benefit of $14 million (after-tax), included $50 million in tax benefits, primarily related to the settlement of a tax audit, partially offset by a pre-tax charge of $36 million primarily related to the impairment of two hotels, one of which was sold in early April subject to a long-term franchise contract and the other of which represents a leased hotel that will be converted to a managed hotel in the second quarter of 2014. Special items in the first quarter of 2013, which totaled a charge of $5 million (after-tax), included a loss of $8 million (pre-tax) primarily related to the sale of three wholly-owned hotels. Excluding special items, the effective income tax rate in the first quarter of 2014 was 32.2% compared to 31.3% in the first quarter of 2013.

Income from continuing operations was $136 million in the first quarter of 2014, compared to $143 million in the first quarter of 2013. Excluding special items, income from continuing operations was $122 million in the first quarter of 2014 compared to $148 million in the first quarter of 2013.

Net income was $137 million and $0.72 per share in the first quarter of 2014, compared to $213 million and $1.09 per share in the first quarter of 2013.

Frits van Paasschen, CEO, said, “The first quarter of 2014 played out at the higher end of our expectations, with Systemwide REVPAR up 6.3% and management and franchise fees up over 9%. North America was our strongest region, benefitting from the economic recovery and growth in business travel which contributed to another quarter of record occupancy. We saw a strong pickup in China, driven by the outperformance of our properties in mainland China and ramp up of our nearly 4,000 room Sheraton Macao.

“Despite an uncertain economic and geopolitical environment, we remain focused on growing our footprint around the world with high quality hotels under our nine distinct brands. Each new hotel we bring into our system creates opportunities for further growth, allowing us to expand our global base of high-end travelers. The brand loyalty among these travelers, along with our global sales force, guest facing technology and local teams, enable us to deliver even more value to our hotel owners.”

First Quarter 2014 Operating Results

Management and Franchise Revenues

Worldwide Systemwide REVPAR for Same-Store Hotels increased 6.3% in constant dollars (5.0% in actual dollars) compared to the first quarter of 2013. International Systemwide REVPAR for Same-Store Hotels increased 5.4% in constant dollars (3.4% in actual dollars).

Changes in REVPAR for Worldwide Systemwide Same-Store Hotels by region:

             
            REVPAR  
Region  

Constant

Dollars

   

Actual

Dollars

 
Americas:      
North America 7.1 % 6.4 %
Latin America 2.9 % 2.9 %
Asia Pacific:
Greater China 11.9 % 13.3 %
Rest of Asia 5.6 % (4.7 )%
Europe, Africa & Middle East:
Europe 2.5 % 4.7 %
Africa & Middle East 2.1 % 1.1 %
 

Changes in REVPAR for Worldwide Systemwide Same-Store Hotels by brand:

             
                REVPAR  
Brand  

Constant

Dollars

     

Actual

Dollars

 
St. Regis/Luxury Collection   8.1 %       6.8 %
W Hotels 4.5 % 3.6 %
Westin 6.8 % 5.2 %
Sheraton 7.0 % 5.8 %
Le Méridien 0.5 % (0.4 )%
Four Points by Sheraton 5.2 % 3.7 %
Aloft 8.2 % 8.0 %
 

Worldwide Same-Store Company-Operated gross operating profit margins increased approximately 150 basis points compared to 2013. International gross operating profit margins for Same-Store Company-Operated properties increased approximately 180 basis points. North American Same-Store Company-Operated gross operating profit margins increased approximately 100 basis points.

Management fees, franchise fees and other income were $248 million, up $31 million, or 14.3% compared to the first quarter of 2013. Management fees increased 8.9% to $135 million and franchise fees increased 10.4% to $53 million. Other management and franchise revenue was up 35.9% compared to the first quarter of 2013 primarily due to fees associated with the termination of certain management and franchise contracts during the quarter.

Development

During the first quarter of 2014, the Company signed 28 hotel management and franchise contracts, representing approximately 6,000 rooms, of which 23 are new builds and five are conversions from other brands. At March 31, 2014, the Company had approximately 450 hotels in the active pipeline representing approximately 105,000 rooms.

During the first quarter of 2014, 10 new hotels and resorts (representing approximately 1,900 rooms) entered the system, including Ajman Saray, a Luxury Collection Resort (UAE, 205 rooms), The Westin Qingdao (China, 321 rooms), Sheraton Santo Domingo Hotel (Dominican Republic, 245 rooms), Aloft Guadalajara (Mexico, 142 rooms), and Four Points by Sheraton Brisbane (Australia, 245 rooms). During the quarter, five properties (representing approximately 1,200 rooms) were removed from the system.

Owned Hotels

Worldwide REVPAR at Starwood Same-Store Owned Hotels increased 4.7% in constant dollars (2.9% in actual dollars) when compared to 2013. REVPAR at Starwood Same-Store Owned Hotels in North America increased 5.5% in constant dollars (2.8% actual dollars). Internationally, Starwood Same-Store Owned Hotel REVPAR increased 4.0% in constant dollars (2.9% in actual dollars).

Revenues at Starwood Same-Store Owned Hotels Worldwide increased 4.2% in constant dollars (2.3% in actual dollars) while costs and expenses increased 2.1% in constant dollars (0.6% in actual dollars) when compared to 2013. Margins at these hotels increased approximately 150 basis points compared to 2013.

Revenues at Starwood Same-Store Owned Hotels in North America increased 5.0% in constant dollars (2.4% in actual dollars) while costs and expenses increased 3.5% in constant dollars (1.0% in actual dollars) when compared to 2013. Margins at these hotels increased approximately 110 basis points compared to 2013.

Internationally, revenues at Starwood Same-Store Owned Hotels increased 3.5% in constant dollars (2.2% in actual dollars) while costs and expenses increased 0.7% in constant dollars (0.2% in actual dollars) when compared to 2013. Margins at these hotels increased approximately 170 basis points compared to 2013.

Revenues at Owned Hotels were $364 million, compared to $379 million in 2013. Expenses at Owned Hotels were $301 million compared to $320 million in 2013. First quarter revenues were negatively impacted by asset sales since the first quarter of 2013.

Vacation Ownership

Total vacation ownership revenues decreased 10.2% to $159 million in the first quarter of 2014 when compared to 2013 primarily due to the impact of deferred vacation ownership revenue. Originated contract sales of vacation ownership intervals increased 1.2% in the three months ended March 31, 2014, when compared to the corresponding period in 2013, primarily due to a 3.4% increase in the average price per vacation ownership unit sold to $16,800, partially offset by a 2.8% decrease in the number of contracts signed.

Residential

During the first quarter of 2014, the Company’s residential revenues were $15 million compared to $132 million in 2013. The Company realized residential revenues from Bal Harbour of $13 million and generated earnings of $10 million, compared to revenues of $129 million and earnings of $58 million in the first quarter of 2013, due to the substantial sell out of The St. Regis Bal Harbour residential project.

Selling, General, Administrative and Other

During the first quarter of 2014, selling, general, administrative and other expenses increased 5.6% to $95 million compared to $90 million in 2013. The Company continues to target a 3-5% increase for the full year.

Capital

Gross capital spending during the quarter included approximately $44 million of maintenance capital and $49 million of development capital.

Asset Sales

During the first quarter of 2014, the Company completed the sale of The St. Regis Bal Harbour Resort in Miami Beach, FL for gross cash proceeds of approximately $213 million subject to a long-term management contract. Subsequent to the end of the first quarter of 2014, the Company completed the sale of the Aloft Tucson University in Tucson, AZ for gross cash proceeds of approximately $19 million, subject to a long-term franchise contract.

Dividend

On February 21, 2014, the Company declared a regular quarterly dividend of $0.35 per share, which was paid on March 28, 2014. Additionally, the Company announced its intention to return approximately $500 million in cash realized from the completion of The St. Regis Bal Harbour residential project and sale of the hotel. Accordingly, the Company paid a special dividend of $0.65 per share on March 28, 2014 and expects to pay additional special dividends of $0.65 per share over each of the next three quarters. The total dividends paid in the first quarter of 2014 were approximately $190 million.

Balance Sheet

At March 31, 2014, the Company had gross debt of $1.3 billion, cash and cash equivalents of $795 million (including $138 million of restricted cash) and net debt of $473 million, compared to net debt of $528 million as of December 31, 2013, in each case excluding debt and restricted cash associated with securitized vacation ownership notes receivable. Net debt at March 31, 2014, including $327 million of debt and $14 million of restricted cash associated with securitized vacation ownership notes receivable, was $786 million.

Outlook

For the full year 2014:

  • Adjusted EBITDA is expected to be approximately $1.210 billion to $1.230 billion (based on the assumptions below).
    • REVPAR increases at Same-Store Company-Operated Hotels Worldwide of 5% to 7% in constant dollars (approximately 25 basis points lower in actual dollars at current exchange rates).
    • REVPAR increases at Same-Store Owned Hotels Worldwide of 4% to 6% in constant dollars (approximately 50 basis points lower in actual dollars at current exchange rates).
    • Margins at Same-Store Owned Hotels Worldwide increase 75 to 125 basis points.
    • Management fees, franchise fees and other income increase approximately 8% to 10%.
    • Earnings from the Company’s vacation ownership and residential business of approximately $160 million to $170 million.
    • Selling, general and administrative expenses increase approximately 3% to 5%.
    • Full year owned earnings are negatively impacted by approximately $30 million due to 2013 and year to date 2014 asset sales, and a leased hotel that will be converted to a managed hotel in 2014.
  • Depreciation and amortization is expected to be approximately $310 million.
  • Interest expense is expected to be approximately $115 million.
  • Full year effective tax rate is expected to be approximately 32.5%, and cash taxes from operating earnings are expected to be approximately $160 million.
  • EPS before special items is expected to be approximately $2.76 to $2.83 (based on the assumptions above).
  • Full year capital expenditures (excluding vacation ownership and residential inventory) are 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 $200 million.
  • Vacation ownership is expected to generate approximately $300 million in positive cash flow, including proceeds from the securitization of receivables the company anticipates completing in the second half of 2014.

For the three months ended June 30, 2014:

  • Adjusted EBITDA is expected to be approximately $310 million to $320 million (based on the assumptions below).
    • REVPAR increases at Same-Store Company-Operated Hotels Worldwide of 5% to 7% in constant and actual dollars.
    • REVPAR increases at Same-Store Company Owned Hotels Worldwide of 4% to 6% in constant and actual dollars.
    • Management fees, franchise fees and other income increase approximately 8% to 10%.
    • Earnings from the Company’s vacation ownership and residential business of approximately $40 million to $45 million.
  • Depreciation and amortization is expected to be approximately $75 million.
  • Interest expense is expected to be approximately $30 million.
  • The effective tax rate for the quarter is expected to be approximately 32.5% (based on the assumptions above).

EPS is expected to be approximately $0.72 to $0.76 (based on the assumptions above).

Special Items

The Company’s special items netted to a pre-tax charge of $36 million ($14 million benefit after-tax) in the first quarter of 2014 compared to a pre-tax charge of $8 million ($5 million after-tax) in the same period of 2013.

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

March 31,

2014     2013
 
Income from continuing operations before special items $ 122   $ 148  
EPS before special items $ 0.63   $ 0.76  
Special Items
Restructuring and other special (charges) credits, net - 1
Gain (loss) on asset dispositions and impairments, net (a)   (36 )   (9 )
Total special items – pre-tax (36 ) (8 )
Income tax benefit (expense) for special items (b)   50     3  
Total special items – after-tax   14     (5 )
 
Income from continuing operations $ 136   $ 143  
EPS including special items $ 0.71   $ 0.73  
 
      a)   During the three months ended March 31, 2014, the net loss primarily relates to the impairment of two hotels, one of which was sold in early April subject to a long-term franchise contract and the other of which represents a leased hotel that will be converted to a managed hotel in the second quarter of 2014. In addition during the three months ended March 31, 2014, the Company recorded an impairment charge associated with one of its foreign unconsolidated joint ventures. During the three months ended March 31, 2013, the net loss primarily relates to the sale of three wholly-owned hotels.
 
b) During the three months ended March 31, 2014, the net benefit primarily relates to the recognition of $52 million for settlement of a foreign tax audit, partially offset by tax charges on the pre-tax special items. During the three months ended March 31, 2013, the benefit primarily relates to a tax benefit on the special items at the statutory tax rate.
 

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 ongoing operations.

Starwood will be conducting a conference call to discuss the first quarter financial results at 10:30 a.m. Eastern Time today, available via webcast on the Company’s website at http://www.starwoodhotels.com/corporate/about/investor/earnings.html. A webcast replay will be available on the corporate website a few hours after the live event on Thursday, April 24 and will run for one year. Alternatively, participants may call into (866) 921-0636 with conference ID 12049644; please dial in fifteen minutes early to ensure a timely start. A call replay will be available a few hours after the live event on Thursday, April 24 and will run for one week; the call replay can be accessed by dialing (855) 859-2056 with conference ID 12049644.

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 and other special charges (credits), 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 ongoing 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 Owned or Owned Hotels reflect the Company’s owned, leased, and consolidated joint venture hotels. 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 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 nearly 1,200 properties in 100 countries and 181,400 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 Element®. 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. There can be no assurance as to the development of future hotels in the Company’s pipeline or additional vacation ownership units. 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)

 
       

Three Months Ended

March 31,

   2014   

   

   2013   

   

%

Variance

Revenues
Owned, leased and consolidated joint venture hotels $ 364 $ 379 (4.0 )
Vacation ownership and residential sales and services 174 309 (43.7 )
Management fees, franchise fees and other income 248 217 14.3
Other revenues from managed and franchised properties (a)   672     634   6.0  
1,458 1,539 (5.3 )
Costs and Expenses
Owned, leased and consolidated joint venture hotels 301 320 5.9
Vacation ownership and residential 128 199 35.7
Selling, general, administrative and other 95 90 (5.6 )
Restructuring and other special charges (credits), net (1 ) (100.0 )
Depreciation 60 58 (3.4 )
Amortization 8 7 (14.3 )
Other expenses from managed and franchised properties (a)   672     634   (6.0 )
1,264 1,307 3.3
Operating income 194 232 (16.4 )

Equity earnings and gains from unconsolidated ventures,

     net

9 9
Interest expense, net of interest income of $1 and $1 (23 ) (26 ) 11.5
Gain (loss) on asset dispositions and impairments, net   (36 )   (9 ) n/m  

Income from continuing operations before taxes and

     noncontrolling interests

144 206 (30.1 )
Income tax expense   (8 )   (64 ) 87.5  
Income from continuing operations 136 142 (4.2 )
Discontinued Operations:

Gain on dispositions, net of tax

  1     70   (98.6 )
Net income 137 212 (35.4 )
Net loss attributable to noncontrolling interests       1   (100.0 )
Net income attributable to Starwood $ 137   $ 213   (35.7 )
Earnings Per Share – Basic
Continuing operations $ 0.71 $ 0.74 (4.1 )
Discontinued operations   0.01     0.37   (97.3 )
Net income $ 0.72   $ 1.11   (35.1 )
Earnings Per Share – Diluted
Continuing operations $ 0.71 $ 0.73 (2.7 )
Discontinued operations   0.01     0.36   (97.2 )
Net income $ 0.72   $ 1.09   (33.9 )

Amounts attributable to Starwood’s Common

     Stockholders

Continuing operations $ 136 $ 143 (4.9 )
Discontinued operations   1     70   (98.6 )
Net income $ 137   $ 213   (35.7 )
 
Weighted average number of shares   190     191  
Weighted average number of shares assuming dilution   192     194  
 
(a)   The Company includes in revenues the reimbursement of costs incurred on behalf of managed hotel property owners and franchisees with no added margin and includes in costs and expenses these reimbursed costs. These costs relate primarily to payroll costs at managed properties where the Company is the employer.

 

n/m = not meaningful

           

STARWOOD HOTELS & RESORTS WORLDWIDE, INC.

Consolidated Balance Sheets

(In millions, except share data)

 

    March 31,    
2014

December 31,
2013
(unaudited)
Assets
Current assets:
Cash and cash equivalents $ 657 $ 616
Restricted cash 149 134
Accounts receivable, net of allowance for doubtful accounts of $65 and $59 625 643
Inventories 209 217

Securitized vacation ownership notes receivable, net of allowance for doubtful
    accounts of $5 and $6

52 54
Deferred income taxes 205 211
Prepaid expenses and other   166     121  
Total current assets 2,063 1,996
Investments 245 251
Plant, property and equipment, net 2,899 2,977
Assets held for sale, net 31 60
Goodwill and intangible assets, net 2,007 2,029
Deferred income taxes 632 591
Other assets (a) 583 543
Securitized vacation ownership notes receivable, net   292     315  
Total assets $ 8,752   $ 8,762  
Liabilities and Stockholders’ Equity
Current liabilities:
Short-term borrowings and current maturities of long-term debt (b) $ 4 $ 2
Accounts payable 78 105
Current maturities of long-term securitized vacation ownership debt 91 97
Accrued expenses 1,138 1,092
Accrued salaries, wages and benefits 324 404
Accrued taxes and other   258     224  
Total current liabilities 1,893 1,924
Long-term debt (b) 1,264 1,265
Long-term securitized vacation ownership debt 236 258
Deferred income taxes 47 48
Other liabilities   1,992     1,904  
Total liabilities   5,432     5,399  
Commitments and contingencies
Stockholders’ equity:

Common stock; $0.01 par value; authorized 1,000,000,000 shares;
     192,644,321 and 191,897,809 shares outstanding at March 31, 2014 and
     December 31, 2013, respectively

2 2
Additional paid-in capital 675 661
Accumulated other comprehensive loss (335 ) (335 )
Retained earnings   2,975     3,032  
Total Starwood stockholders’ equity 3,317 3,360
Noncontrolling interests   3     3  
Total equity   3,320     3,363  
Total liabilities and equity $ 8,752   $ 8,762  
 
(a)   Includes restricted cash of $3 million at March 31, 2014 and December 31, 2013.
 
(b) Excludes Starwood’s share of unconsolidated joint venture debt aggregating approximately $215 million and $218 million at March 31, 2014 and December 31, 2013, respectively.
 
       

STARWOOD HOTELS & RESORTS WORLDWIDE, INC.

Non-GAAP to GAAP Reconciliations – Historical Data

(In millions)

 

Three Months Ended
March 31,

 

   2014   

     

   2013  

     

%
Variance

 

Reconciliation of Net Income (Loss) to EBITDA and Adjusted
     EBITDA

Net income $ 137 $ 213 (35.7 )
Interest expense (a) 27 28 (3.6 )
Income tax (benefit) expense (b) 7 (6 ) n/m
Depreciation (c) 66 64 3.1
Amortization (d)   8   8    
EBITDA 245 307 (20.2 )
(Gain) loss on asset dispositions and impairments, net 36 9 n/m
Restructuring and other special charges (credits), net     (1 ) 100.0  
Adjusted EBITDA $ 281 $ 315   (10.8 )
 
(a)   Includes $3 million and $1 million of Starwood’s share of interest expense from unconsolidated joint ventures for the three months ended March 31, 2014 and 2013, respectively.
 
(b) Includes $(1) million and $(70) million of tax benefits recorded in discontinued operations for the three months ended March 31, 2014 and 2013, respectively.
 
(c) Includes $6 million and $6 million of Starwood’s share of depreciation expense from unconsolidated joint ventures for the three months ended March 31, 2014 and 2013, respectively.
 
(d) Includes $1 million of Starwood’s share of amortization expense from unconsolidated joint ventures for the three months ended March 31, 2013.
 
   

STARWOOD HOTELS & RESORTS WORLDWIDE, INC.

Non-GAAP to GAAP Reconciliations – Same-Store Owned Hotels Worldwide

(In millions)

 

Three Months Ended
March 31, 2014

  $ Change  

    % Variance
Revenue
Revenue increase/(decrease) (GAAP) $ 7 2.3
Impact of changes in foreign exchange rates   5 1.9  
Revenue increase/(decrease) in constant dollars $ 12 4.2  
 
Expense
Expense increase/(decrease) (GAAP) $ 1 (0.6 )
Impact of changes in foreign exchange rates   4 (1.5 )
Expense increase/(decrease) in constant dollars $ 5 (2.1 )
 

Non-GAAP to GAAP Reconciliations – Same-Store Owned Hotels North America
(In millions)

 
Three Months Ended
March 31, 2014

$ Change

% Variance
Revenue
Revenue increase/(decrease) (GAAP) $ 4 2.4
Impact of changes in foreign exchange rates   3 2.6  
Revenue increase/(decrease) in constant dollars $ 7 5.0  
 
Expense
Expense increase/(decrease) (GAAP) $ 1 (1.0 )
Impact of changes in foreign exchange rates   3 (2.5 )
Expense increase/(decrease) in constant dollars $ 4 (3.5 )
 

Non-GAAP to GAAP Reconciliations – Same-Store Owned Hotels International
(In millions)

 

Three Months Ended
March 31, 2014

$ Change

% Variance
Revenue
Revenue increase/(decrease) (GAAP) $ 3 2.2
Impact of changes in foreign exchange rates   2 1.3  
Revenue increase/(decrease) in constant dollars $ 5 3.5  
 
Expense
Expense increase/(decrease) (GAAP) $ (0.2 )
Impact of changes in foreign exchange rates   1 (0.5 )
Expense increase/(decrease) in constant dollars $ 1 (0.7 )
 
       

STARWOOD HOTELS & RESORTS WORLDWIDE, INC.

Non-GAAP to GAAP Reconciliation – Earnings from Vacation Ownership and Residential Business

(In millions)

 
Three Months Ended
March 31, 2014
 

   2014   

       

   2013   

      $ Variance
Vacation ownership and residential sales and services revenue $ 174 $ 309 (135 )
Vacation ownership and residential expense   (128 )   (199 ) 71  
Earnings from vacation ownership and residential $ 46   $ 110   (64 )
 
Three Months Ended
March 31, 2014
  2014     2013   $ Variance
Total Bal Harbour revenues $ 13 $ 129 (116 )
Total Bal Harbour expenses   (3 )   (71 ) 68  
Earnings from Bal Harbour $ 10   $ 58   (48 )
 
       

STARWOOD HOTELS & RESORTS WORLDWIDE, INC.

Non-GAAP to GAAP Reconciliations – Future Performance

(In millions, except per share data)


Low Case

 

Three Months Ended
June 30, 2014

 Year Ended
   December 31, 2014   

$

138

Net income

$

545
30 Interest expense 115
67 Income tax expense 204
  75 Depreciation and amortization   310
310 EBITDA 1,174
(Gain) loss on asset dispositions and impairments, net 36
  Restructuring and other special charges (credits)  
$ 310 Adjusted EBITDA $ 1,210
 

Three Months Ended
June 30, 2014

   

 

   

Year Ended
   December 31, 2014

$

138

Income from continuing operations before special items $ 530
$ 0.72 EPS before special items $ 2.76
Special Items
Restructuring and other special credits
Gain (loss) on asset dispositions, net (36)
  Debt extinguishment  
Total special items – pre-tax (36)
Income tax (benefit) expense on special items 50
  Reserves and credits associated with tax  
  Total special items – after-tax   14
$ 138 Income from continuing operations $ 544
$ 0.72 EPS including special items $ 2.83
 
   

High Case

   

Three Months Ended
June 30, 2014

Year Ended
   December 31, 2014   

$

145

Net income $ 558
30 Interest expense 115
70 Income tax expense 211
  75 Depreciation and amortization   310
320 EBITDA 1,194
(Gain) loss on asset dispositions and impairments, net 36
  Restructuring and other special charges (credits)  
$ 320 Adjusted EBITDA $ 1,230
 

Three Months Ended
June 30, 2014

       

Year Ended
   December 31, 2014   

$

145

Income from continuing operations before special items $ 543
$ 0.76 EPS before special items $ 2.83
Special Items
Restructuring and other special credits
Gain (loss) on asset dispositions, net (36)
  Debt extinguishment  
Total special items – pre-tax   (36)
Income tax benefit associated with special items 50
  Reserves and credits associated with tax  
  Total special items – after-tax   14
$ 145 Income from continuing operations $ 557
$ 0.76 EPS including special items $ 2.90
 
   

STARWOOD HOTELS & RESORTS WORLDWIDE, INC.

Non-GAAP to GAAP Reconciliations –

Future Earnings from Vacation Ownership and Residential Business

(In millions)

Low Case

 

Three Months Ended
June 30, 2014

Vacation ownership and residential sales and services revenue $ 170
Vacation ownership and residential expenses   (130)
Earnings from vacation ownership and residential $ 40
 
 

Year Ended
December 31, 2014

Vacation ownership and residential sales and services revenues     

$ 680
Vacation ownership and residential expenses   (520)
Earnings from vacation ownership and residential $ 160
 

High Case

   

Three Months Ended
June 30, 2014

Vacation ownership and residential sales and services revenue     

$ 175
Vacation ownership and residential expenses   (130)
Earnings from vacation ownership and residential $ 45
 
 

Year Ended
December 31, 2014

Vacation ownership and residential sales and services revenues     

$ 685
Vacation ownership and residential expenses   (515)
Earnings from vacation ownership and residential $ 170
 
       

STARWOOD HOTELS & RESORTS WORLDWIDE, INC.

Non-GAAP to GAAP Reconciliations – Same Store Owned Hotel Revenue and Expenses

(In millions)

 

 

Three Months Ended
March 31,

Same-Store Owned Hotels
Worldwide

    2014    

   

    2013    

   

%
Variance

 
Revenue

Same-Store Owned Hotels (a)

$

292

$ 285 2.3
Hotels Sold or Closed in 2014 and 2013 6 40 (85.0 )
Hotels Without Comparable Results 60 48 25.0
Other ancillary hotel operations   6   6  
Total Owned, Leased and Consolidated Joint Venture Hotels Revenue $ 364 $ 379 (4.0 )
 
Costs and Expenses
Same-Store Owned Hotels (a) $ 240 $ 239 (0.6 )
Hotels Sold or Closed in 2014 and 2013 4 28 85.7
Hotels Without Comparable Results 51 46 (10.9 )
Other ancillary hotel operations   6   7 14.3  
Total Owned, Leased and Consolidated Joint Venture Hotels Costs and Expenses $ 301 $ 320 5.9  
 

 

Three Months Ended
March 31,

Same-Store Owned Hotels
North America

2014 2013

%
Variance

 
Revenue
Same-Store Owned Hotels (a) $ 140 $ 136 2.4
Hotels Sold or Closed in 2014 and 2013 6 40 (85.0 )
Hotels Without Comparable Results 53 42 26.2
Other ancillary hotel operations      
Total Owned, Leased and Consolidated Joint Venture Hotels Revenue $ 199 $ 218 (8.7 )
 
Costs and Expenses
Same-Store Owned Hotels (a) $ 113 $ 112 (1.0 )
Hotels Sold or Closed in 2014 and 2013 4 28 85.7
Hotels Without Comparable Results 44 39 (12.8 )
Other ancillary hotel operations      
Total Owned, Leased and Consolidated Joint Venture Hotels Costs and Expenses $ 161 $ 179 10.1  
 

 

Three Months Ended
March 31,

Same-Store Owned Hotels
International

2014 2013

%
Variance

 
Revenue
Same-Store Owned Hotels (a) $ 152 $ 149 2.2
Hotels Sold or Closed in 2014 and 2013
Hotels Without Comparable Results 7 6 16.7
Other ancillary hotel operations   6   6  
Total Owned, Leased and Consolidated Joint Venture Hotels Revenue $ 165 $ 161 2.5  
 
Costs and Expenses
Same-Store Owned Hotels (a) $ 127 $ 127 (0.2 )
Hotels Sold or Closed in 2014 and 2013
Hotels Without Comparable Results 7 7
Other ancillary hotel operations   6   7 14.3  
Total Owned, Leased and Consolidated Joint Venture Hotels Costs and Expenses $ 140 $ 141 0.7  
 
    (a)   Same-Store Owned Hotel results exclude seven hotels sold and seven hotels without comparable results for the three months ended March 31, 2014.
 
 
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Systemwide(1) Statistics - Same Store
For the Three Months Ended March 31,
UNAUDITED
 
        Systemwide - Worldwide     Systemwide - North America     Systemwide - International

     2014     

   

     2013     

    Var. USD

     2014     

   

     2013     

    Var. USD

     2014     

   

     2013     

    Var. USD
 
TOTAL HOTELS
REVPAR ($) 116.43 110.87 5.0% 121.51 114.23 6.4% 110.63 107.00 3.4%
ADR ($) 174.63 172.42 1.3% 171.68 166.32 3.2% 178.47 180.57 -1.2%
Occupancy (%) 66.7% 64.3% 2.4 70.8% 68.7% 2.1 62.0% 59.3% 2.7
 
SHERATON
REVPAR ($) 99.16 93.76 5.8% 101.57 95.66 6.2% 96.45 91.58 5.3%
ADR ($) 151.61 150.05 1.0% 147.03 143.32 2.6% 157.43 158.97 -1.0%
Occupancy (%) 65.4% 62.5% 2.9 69.1% 66.7% 2.4 61.3% 57.6% 3.7
 
WESTIN
REVPAR ($) 132.05 125.58 5.2% 133.96 125.32 6.9% 128.10 126.12 1.6%
ADR ($) 187.06 183.50 1.9% 184.90 177.94 3.9% 191.93 196.18 -2.2%
Occupancy (%) 70.6% 68.4% 2.2 72.5% 70.4% 2.1 66.7% 64.3% 2.4
 
ST. REGIS/LUXURY COLLECTION
REVPAR ($) 200.06 187.32 6.8% 288.84 267.82 7.8% 162.66 153.01 6.3%
ADR ($) 315.09 307.41 2.5% 390.58 363.56 7.4% 275.29 275.65 -0.1%
Occupancy (%) 63.5% 60.9% 2.6 74.0% 73.7% 0.3 59.1% 55.5% 3.6
 
LE MERIDIEN
REVPAR ($) 119.58 120.11 -0.4% 187.69 178.31 5.3% 110.34 112.22 -1.7%
ADR ($) 186.14 186.25 -0.1% 237.77 229.74 3.5% 177.27 178.96 -0.9%
Occupancy (%) 64.2% 64.5% -0.3 78.9% 77.6% 1.3 62.2% 62.7% -0.5
 
W
REVPAR ($) 218.50 210.97 3.6% 215.42 208.14 3.5% 224.32 216.37 3.7%
ADR ($) 293.70 284.97 3.1% 281.84 272.74 3.3% 317.98 310.44 2.4%
Occupancy (%) 74.4% 74.0% 0.4 76.4% 76.3% 0.1 70.5% 69.7% 0.8
 
FOUR POINTS
REVPAR ($) 72.61 70.00 3.7% 74.99 72.02 4.1% 69.30 67.13 3.2%
ADR ($) 113.93 114.34 -0.4% 111.13 109.60 1.4% 118.41 122.38 -3.2%
Occupancy (%) 63.7% 61.2% 2.5 67.5% 65.7% 1.8 58.5% 54.9% 3.6
 
ALOFT
REVPAR ($) 73.45 68.04 8.0% 84.64 75.64 11.9% 48.82 51.30 -4.8%
ADR ($) 110.49 108.78 1.6% 118.81 114.25 4.0% 87.18 94.14 -7.4%
Occupancy (%) 66.5% 62.5% 4.0 71.2% 66.2% 5.0 56.0% 54.5% 1.5
 

(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 March 31,
UNAUDITED
 
        Systemwide (1)     Company Operated (2)

     2014     

   

     2013     

    Var. USD

     2014     

   

     2013     

    Var. USD
 
TOTAL WORLDWIDE
REVPAR ($) 116.43 110.87 5.0% 130.97 124.36 5.3%
ADR ($) 174.63 172.42 1.3% 196.45 193.82 1.4%
Occupancy (%) 66.7% 64.3% 2.4 66.7% 64.2% 2.5
 
AMERICAS
REVPAR ($) 120.06 113.12 6.1% 150.51 142.00 6.0%
ADR ($) 171.34 166.28 3.0% 209.27 201.52 3.8%
Occupancy (%) 70.1% 68.0% 2.1 71.9% 70.5% 1.4
 
North America
REVPAR ($) 121.51 114.23 6.4% 155.29 146.07 6.3%
ADR ($) 171.68 166.32 3.2% 212.39 204.19 4.0%
Occupancy (%) 70.8% 68.7% 2.1 73.1% 71.5% 1.6
 
Latin America
REVPAR ($) 103.52 100.56 2.9% 115.29 111.98 3.0%
ADR ($) 166.97 165.86 0.7% 182.64 178.99 2.0%
Occupancy (%) 62.0% 60.6% 1.4 63.1% 62.6% 0.5
 
ASIA PACIFIC
REVPAR ($) 102.71 99.01 3.7% 105.48 99.25 6.3%
ADR ($) 162.96 168.28 -3.2% 167.37 170.79 -2.0%
Occupancy (%) 63.0% 58.8% 4.2 63.0% 58.1% 4.9
 
Greater China
REVPAR ($) 93.66 82.67 13.3% 93.05 81.24 14.5%
ADR ($) 160.02 162.49 -1.5% 158.90 160.81 -1.2%
Occupancy (%) 58.5% 50.9% 7.6 58.6% 50.5% 8.1
 
Rest of Asia Pacific
REVPAR ($) 114.53 120.23 -4.7% 129.20 133.36 -3.1%
ADR ($) 166.21 173.81 -4.4% 180.60 183.96 -1.8%
Occupancy (%) 68.9% 69.2% -0.3 71.5% 72.5% -1.0
 
EAME
REVPAR ($) 124.23 120.39 3.2% 132.18 127.98 3.3%
ADR ($) 205.51 202.35 1.6% 211.85 208.66 1.5%
Occupancy (%) 60.4% 59.5% 0.9 62.4% 61.3% 1.1
 
Europe
REVPAR ($) 115.58 110.44 4.7% 126.00 119.93 5.1%
ADR ($) 200.23 195.93 2.2% 208.90 204.38 2.2%
Occupancy (%) 57.7% 56.4% 1.3 60.3% 58.7% 1.6
 
Africa & Middle East
REVPAR ($) 140.34 138.88 1.1% 141.00 139.49 1.1%
ADR ($) 214.19 212.65 0.7% 215.75 214.17 0.7%
Occupancy (%) 65.5% 65.3% 0.2 65.4% 65.1% 0.3
 

(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
For the Three Months Ended March 31,
UNAUDITED
 
        Worldwide       North America       International

     2014     

     

     2013     

      Var. USD

     2014     

     

     2013     

      Var. USD

     2014     

     

     2013     

      Var. USD
 
TOTAL HOTELS 39 Hotels 12 Hotels 27 Hotels
REVPAR ($) 147.77 143.63 2.9% 152.63 148.43 2.8% 143.78 139.69 2.9%
ADR ($) 215.19 210.47 2.2% 210.58 202.45 4.0% 219.37 218.03 0.6%
Occupancy (%) 68.7% 68.2% 0.5 72.5% 73.3% -0.8 65.5% 64.1% 1.4
 
Total Revenue* 291,808 285,192 2.3% 139,655 136,331 2.4% 152,154 148,861 2.2%
Total Expenses* 239,971 238,628 -0.6% 112,518 111,401 -1.0% 127,452 127,227 -0.2%
 

* 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 March 31,
UNAUDITED ($ millions)
 
              Worldwide

      2014      

     

      2013      

     

 Variance 

      % Variance
Management Fees
Base Fees 86 80 6 7.5%
Incentive Fees 49 44 5 11.4%
Total Management Fees 135 124 11 8.9%
 
Franchise Fees 53 48 5 10.4%
 
Total Management & Franchise Fees 188 172 16 9.3%
 
Other Management & Franchise Revenues (1) 53 39 14 35.9%
 
Total Management & Franchise Revenues 241 211 30 14.2%
 
Other 7 6 1 16.7%
 
Management Fees, Franchise Fees and Other Income 248 217 31 14.3%
 

(1) Other Management & Franchise Revenues primarily includes the amortization of the deferred gains of approximately of $21 million and $23 million in 2014 and 2013, respectively, resulting from the sales of hotels subject to long-term management contracts and termination fees.

 
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Vacation Ownership & Residential Revenues and Expenses
For the Three Months Ended March 31,
UNAUDITED ($ millions)
 
 
           

      2014      

     

      2013      

      $ Variance       % Variance
 
Originated Sales Revenues (1) -- Vacation Ownership Sales 84 83 1 1.2 %
Other Sales and Services Revenues (2) 87 88 (1 ) (1.1 %)
Deferred Revenues -- Percentage of Completion (14 ) (2 ) (12 ) n/m
Deferred Revenues -- Other (3) 2   8   (6 ) (75.0 %)
Vacation Ownership Sales and Services Revenues 159 177 (18 ) (10.2 %)
Residential Sales and Services Revenues (4) 15   132   (117 ) (88.6 %)
Total Vacation Ownership & Residential Sales and Services Revenues 174   309   (135 ) (43.7 %)
 
Originated Sales Expenses (5) -- Vacation Ownership Sales 66 63 (3 ) (4.8 %)
Other Expenses (6) 64 64 0 0.0 %
Deferred Expenses -- Percentage of Completion (8 ) (1 ) 7 n/m
Deferred Expenses -- Other 3   2   (1 ) (50.0 %)
Vacation Ownership Expenses 125 128 3 2.3 %
Residential Expenses (4) 3   71   68   95.8 %
Total Vacation Ownership & Residential Expenses 128   199   71   35.7 %
 

(1)

 

Represents timeshare sales revenue originated at each sales location before deferrals of revenue for U.S. GAAP reporting purposes.

(2)

Includes resort income, interest income, 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 2014 and 2013, includes $13 million and $129 million of revenues and $3 million and $71 million of expenses, respectively, associated with the St. Regis Bal Harbour residential project.

(5)

Represents 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.
Owned Hotels without Comparable Results & Other Selected Items
As of March 31, 2014
UNAUDITED ($ millions)
 
 
Owned Hotels without comparable results in 2014 and 2013:         Revenues and Expenses Associated with Hotels Sold in 2014 and 2013: (1)    
             

Hotel

Location

Aloft Tucson University Tucson, AZ

  Q1  

  Q2  

  Q3  

     Q4     

Full Year
Element Denver Park Meadows Denver, CO Hotels Sold in 2013:
Sheraton Steamboat Springs Steamboat Springs, CO 2013
The Gritti Palace, Venice Venice, Italy Revenues $19 $13 $12 $4 $48
The St. Regis New York New York, NY Expenses (excluding depreciation) $14 $9 $8 $3 $34
The Westin Excelsior, Florence Florence, Italy
The Westin Maui Resort & Spa, Ka'anapali Maui, HI Hotels Sold in 2014:
2014
Revenues $6 - - - $6
Expenses (excluding depreciation) $4 - - - $4
 
2013
Owned Hotels sold in 2014 and 2013: Revenues $21 $14 $12 $17 $64
Expenses (excluding depreciation) $14 $12 $11 $13 $50

Hotel

Location

Aloft Lexington Lexington, MA (1) Results consist of one hotel sold in 2014 and six hotels sold in 2013. These amounts are included in the revenues
Aloft San Francisco Airport San Francisco, CA and expenses from owned, leased and consolidated joint venture hotels in the statements of income for 2014 and 2013.
Element Lexington Lexington, MA
The St. Regis Bal Harbour Resort Miami Beach, FL
The Westin San Francisco Airport San Francisco, CA
W New Orleans New Orleans, LA
W New Orleans - French Quarter New Orleans, LA
 
 
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Capital Expenditures
For the Three Months Ended March 31,
UNAUDITED ($ millions)
 
 
 

     2014     

Maintenance Capital Expenditures: (1)
Owned, Leased and Consolidated Joint Venture Hotels 13
Corporate/IT 31
Subtotal 44
 
Vacation Ownership and Residential Capital Expenditures: (2) (5)
 
Development Capital 49
 
Total Capital Expenditures 88
 

(1) Maintenance capital expenditures include improvements that extend the useful life of the

asset.

 

(2) Represents gross inventory capital expenditures of $9 million in the three months ended

March 31, 2014, less cost of sales of $14 million in the three months ended March 31, 2014.

 
 
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
2014 Divisional Hotel Inventory Summary by Ownership by Brand
As of March 31, 2014
             
Americas   North America   Latin America   Asia Pacific   Greater China   Rest of Asia  

Europe, Africa
& Middle East

  Europe  

Africa &
Middle East

TOTAL
Hotels   Rooms Hotels   Rooms Hotels   Rooms Hotels   Rooms Hotels   Rooms Hotels   Rooms Hotels   Rooms Hotels   Rooms Hotels   Rooms Hotels   Rooms
Owned                    
Sheraton 11 6,284 6 3,585 5 2,699 2 821 - - 2 821 4 705 4 705 - - 17 7,810
Westin 5 2,734 2 1,832 3 902 1 273 - - 1 273 3 650 3 650 - - 9 3,657
Four Points 1 177 1 177 - - - - - - - - - - - - - - 1 177
W 1 509 1 509 - - - - - - - - 2 665 2 665 - - 3 1,174
Luxury Collection 2 824 1 643 1 181 - - - - - - 5 577 5 577 - - 7 1,401
St. Regis 2 498 2 498 - - 1 160 - - 1 160 2 261 2 261 - - 5 919
Le Meridien - - - - - - - - - - - - - - - - - - - -
Aloft 2 290 2 290 - - - - - - - - - - - - - - 2 290
Element 1 123 1 123 - - - - - - - - - - - - - - 1 123
Other         1   135 1   135 -   - -   - -   - -   - -   - -   - -   - 1   135
Total Owned         26   11,574 17   7,792 9   3,782 4   1,254 -   - 4   1,254 16   2,858 16   2,858 -   - 46   15,686
 
Managed & UJV
Sheraton 50 28,169 34 25,090 16 3,079 87 33,875 59 25,768 28 8,107 72 20,008 41 11,952 31 8,056 209 82,052
Westin 56 29,064 53 28,178 3 886 34 11,498 17 6,095 17 5,403 15 4,697 11 3,748 4 949 105 45,259
Four Points 3 426 - - 3 426 27 8,121 20 6,024 7 2,097 12 2,474 4 499 8 1,975 42 11,021
W 28 8,516 26 8,083 2 433 9 2,394 3 1,115 6 1,279 5 937 4 495 1 442 42 11,847
Luxury Collection 11 1,938 4 1,648 7 290 10 1,983 4 811 6 1,172 27 5,253 22 3,664 5 1,589 48 9,174
St. Regis 12 2,347 10 2,038 2 309 8 2,029 5 1,378 3 651 6 1,391 2 223 4 1,168 26 5,767
Le Meridien 4 469 3 309 1 160 26 7,383 9 3,144 17 4,239 44 12,618 16 5,215 28 7,403 74 20,470
Aloft 4 611 - - 4 611 9 2,415 7 1,636 2 779 4 943 3 535 1 408 17 3,969
Element - - - - - - - - - - - - - - - - - - - -
Other         1   151 1   151 -   - -   - -   - -   - 1   165 1   165 -   - 2   316
Total Managed & UJV         169   71,691 131   65,497 38   6,194 210   69,698 124   45,971 86   23,727 186   48,486 104   26,496 82   21,990 565   189,875
 
Franchised
Sheraton 177 51,729 165 48,709 12 3,020 13 6,124 3 1,836 10 4,288 17 4,623 15 4,220 2 403 207 62,476
Westin 71 22,362 66 20,835 5 1,527 9 2,739 2 496 7 2,243 4 1,525 4 1,525 - - 84 26,626
Four Points 124 19,326 115 17,989 9 1,337 9 1,513 1 126 8 1,387 6 971 6 971 - - 139 21,810
W - - - - - - - - - - - - - - - - - - - -
Luxury Collection 10 1,951 7 1,500 3 451 10 3,069 - - 10 3,069 12 1,745 12 1,745 - - 32 6,765
St. Regis - - - - - - - - - - - - - - - - - - - -
Le Meridien 12 3,027 11 2,916 1 111 5 1,209 1 160 4 1,049 4 1,033 3 788 1 245 21 5,269
Aloft 56 8,496 55 8,193 1 303 5 731 - - 5 731 - - - - - - 61 9,227
Element 10 1,670 10 1,670 - - - - - - - - - - - - - - 10 1,670
Other         1   305 1   305 -   - -   - -   - -   - -   - -   - -   - 1   305
Total Franchised         461   108,866 430   102,117 31   6,749 51   15,385 7   2,618 44   12,767 43   9,897 40   9,249 3   648 555   134,148
 
Systemwide
Sheraton 238 86,182 205 77,384 33 8,798 102 40,820 62 27,604 40 13,216 93 25,336 60 16,877 33 8,459 433 152,338
Westin 132 54,160 121 50,845 11 3,315 44 14,510 19 6,591 25 7,919 22 6,872 18 5,923 4 949 198 75,542
Four Points 128 19,929 116 18,166 12 1,763 36 9,634 21 6,150 15 3,484 18 3,445 10 1,470 8 1,975 182 33,008
W 29 9,025 27 8,592 2 433 9 2,394 3 1,115 6 1,279 7 1,602 6 1,160 1 442 45 13,021
Luxury Collection 23 4,713 12 3,791 11 922 20 5,052 4 811 16 4,241 44 7,575 39 5,986 5 1,589 87 17,340
St. Regis 14 2,845 12 2,536 2 309 9 2,189 5 1,378 4 811 8 1,652 4 484 4 1,168 31 6,686
Le Meridien 16 3,496 14 3,225 2 271 31 8,592 10 3,304 21 5,288 48 13,651 19 6,003 29 7,648 95 25,739
Aloft 62 9,397 57 8,483 5 914 14 3,146 7 1,636 7 1,510 4 943 3 535 1 408 80 13,486
Element 11 1,793 11 1,793 - - - - - - - - - - - - - - 11 1,793
Other 3 591 3 591 - - - - - - - - 1 165 1 165 - - 4 756
Vacation Ownership         14   7,576 13   6,996 1   580 -   - -   - -   - -   - -   - -   - 14   7,576

Total Systemwide

        670   199,707 591   182,402 79   17,305 265   86,337 131   48,589 134   37,748 245   61,241 160   38,603 85   22,638 1,180   347,285
 
 
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Vacation Ownership Inventory Pipeline
As of March 31, 2014
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 1,606 70 43 1,719
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     4,846     70     756     5,672
 
Unconsolidated Joint Ventures (UJV's) 1     1     1     198     -     -     198
Total including UJV's         22     22     17     5,044     70     756     5,870
                                               
Total Intervals Including UJV's (7)                           262,288     3,640     39,312     305,240
 

(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.

 

Contacts

Starwood Hotels & Resorts Worldwide, Inc.
Investors
Stephen Pettibone, 203-351-3500
or
Media
KC Kavanagh, 866-478-2777

Release Summary

Starwood Hotels & Resorts Worldwide, Inc. (NYSE: HOT) today reported first quarter 2014 financial results.

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Contacts

Starwood Hotels & Resorts Worldwide, Inc.
Investors
Stephen Pettibone, 203-351-3500
or
Media
KC Kavanagh, 866-478-2777