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Starwood Hotels & Resorts Worldwide, Inc. reported first quarter 2010 financial results. First Quarter 2010 Highlights:
– Excluding special items, EPS from continuing operations was $0.13. Including special items, EPS from continuing operations was $0.16.
– Adjusted EBITDA was $179 million.
– Excluding special items, income from continuing operations was $24 million. Including special items, income from continuing operations was $30 million.
– Worldwide System-wide REVPAR for Same-Store Hotels increased 6.3% (3.0% in constant dollars) compared to the first quarter of 2009. System-wide REVPAR for Same-Store Hotels in North America increased 2.8% (1.2% in constant dollars).
– Management and franchise revenues increased 5.6% compared to 2009.
– Worldwide REVPAR for Starwood branded Same-Store Owned Hotels increased 6.6% (2.1% in constant dollars) compared to the first quarter of 2009. REVPAR for Starwood branded Same-Store Owned Hotels in North America increased 5.8% (2.8% in constant dollars).
– Operating income from vacation ownership and residential increased $3 million compared to 2009, including the impact of ASU 2009-17 (formerly SFAS 167).
– During the quarter, the Company signed 13 hotel management and franchise contracts representing approximately 3,000 rooms and opened 14 hotels and resorts with approximately 2,600 rooms.
– On April 20, 2010, the Company executed a new $1.5 billion Senior Credit Facility which matures on November 15, 2013 and replaces the existing Revolving Credit Agreement which would have matured on February 11, 2011.
Outlook for the Full Year 2010:
Based on our first quarter results and our expectations for the second quarter, full year 2010 REVPAR at Same-Store Company Operated Hotels Worldwide could be up 5% to 8% in constant dollars and approximately 100 bps higher in dollars at current exchange rates. REVPAR at Branded Same-Store Owned Hotels Worldwide could be up 4% to 7% in constant dollars and approximately 100 bps higher in dollars at current exchange rates.
At the midpoint of these REVPAR ranges, adjusted EBITDA would be approximately $810 million (+/- 1 point of REVPAR drives +/- $15 million of EBITDA).
– EPS before special items would be approximately $0.88.
– Management and franchise revenues will increase approximately 6% to 9%.
– Selling, General and Administrative expenses will increase 3% to 5%.
– Operating income from our vacation ownership and residential business will be approximately $115 million to $125 million, including the impact of adopting ASU 2009-17.
– Full year depreciation and amortization will be approximately $335 million.
Full year interest expense will be approximately $262 million (including $20 million to $23 million from the impact of adopting ASU 2009-17) and cash taxes will be approximately $75 million.
– Full year effective tax rate will be approximately 22%.
– Full year capital expenditures (excluding vacation ownership and residential inventory) would be approximately $150 million for maintenance, renovation and technology. In addition, in-flight investment projects and prior commitments for joint ventures and other investments will total approximately $100 million. Vacation ownership is expected to generate approximately $150 million in positive cash flow, including proceeds from a planned securitization in late 2010. Bal Harbour capital will be approximately $140 million.
TravelDailyNews Asia-Pacific editorial team has an experience of over 35 years in B2B travel journalism as well as in tourism & hospitality marketing and communications.
