Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - STARWOOD HOTEL & RESORTS WORLDWIDE, INC | d339550d8k.htm |
Exhibit 99.1
Investor Contact
Stephen Pettibone
203-351-3500
| Media Contact KC Kavanagh 866-478-2777 |
One StarPoint Stamford, CT 06902 United States |
STARWOOD REPORTS FIRST QUARTER
2012 RESULTS
STAMFORD, Conn. (April 26, 2012) – Starwood Hotels & Resorts Worldwide, Inc. (NYSE: HOT) today reported first quarter 2012 financial results.
First Quarter 2012 Highlights
| • | Excluding special items, EPS from continuing operations was $0.63, including income from the St. Regis Bal Harbour residential project. Including special items, EPS from continuing operations was $0.65. |
| • | Adjusted EBITDA was $297 million, which included $78 million of EBITDA from the St. Regis Bal Harbour residential project, up 42.8% compared to 2011. |
| • | Excluding special items, income from continuing operations was $124 million, including income from the St. Regis Bal Harbour residential project. Including special items, income from continuing operations was $129 million. |
| • | Worldwide System-wide REVPAR for Same-Store Hotels increased 5.8% (6.4% in constant dollars) compared to 2011. System-wide REVPAR for Same-Store Hotels in North America increased 7.1% (7.2% in constant dollars). |
| • | Management fees, franchise fees and other income increased 13.6% compared to 2011. |
| • | Worldwide Same-Store Company-Operated gross operating profit margins increased approximately 160 basis points compared to 2011. |
| • | Worldwide REVPAR for Starwood branded Same-Store Owned Hotels increased 4.5% (4.9% in constant dollars) compared to 2011. |
| • | Margins at Starwood branded Same-Store Owned Hotels Worldwide increased approximately 160 basis points compared to 2011. |
| • | Earnings from our vacation ownership and residential business increased approximately $79 million compared to 2011, including $78 million of earnings from the St. Regis Bal Harbour residential project. |
| • | During the quarter, the Company signed 32 hotel management and franchise contracts, representing approximately 9,000 rooms, and opened 18 hotels and resorts with approximately 4,500 rooms. |
First Quarter 2012 Earnings Summary
Starwood Hotels & Resorts Worldwide, Inc. (“Starwood” or the “Company”) today reported EPS from continuing operations for the first quarter of 2012 of $0.65 compared to $0.15 in the first quarter of 2011. Excluding special items, EPS from continuing operations was $0.63 for the first quarter of 2012, including income from The St. Regis Bal Harbour Resort residential project (“Bal Harbour”), compared to $0.30 in the first quarter of 2011. Special items in the first quarter of 2012 included an $11 million (pre-tax) reduction of a legal reserve, partially offset by a $7 million (pre-tax) loss on the sale of one wholly-owned hotel. Special items in the first quarter of 2011 included a pre-tax charge of $33 million, primarily related to the Company’s minority investment in a hotel in Tokyo, Japan following the earthquake in March 2011. Excluding special items, the effective income tax rate in the first quarter of 2012 was 29.8%, including income from Bal Harbour, compared to 21.0% in the first quarter of 2011.
Income from continuing operations was $129 million in the first quarter of 2012, compared to $29 million in the first quarter of 2011. Excluding special items, income from continuing operations was $124 million in the first quarter of 2012, including income from Bal Harbour, compared to $58 million in the first quarter of 2011.
Net income was $128 million and $0.65 per share in the first quarter of 2012, compared to $28 million and $0.14 per share in the first quarter of 2011.
Frits van Paasschen, CEO, said, “Our momentum picked up in the first quarter. Worldwide REVPAR grew 6.4%, adjusting for exchange rates, and fees were up a healthy 13.6%. We are proud to report that our brand portfolio again outperformed the market, posting our 11th straight quarterly gain in REVPAR index.”
“Going into the year, we said that 2012 was more likely to surprise on the upside. So far, that is playing out. More importantly, we remain very bullish on the long-term. Seemingly unstoppable demographic and economic trends are fueling global growth in demand for high end travel. Rising wealth around the world and globally interconnected businesses will lead to ever more travel.”
First Quarter 2012 Operating Results
Management and Franchise Revenues
Worldwide System-wide REVPAR for Same-Store Hotels increased 5.8% (6.4% in constant dollars) compared to the first quarter of 2011. International System-wide REVPAR for Same-Store Hotels increased 4.1% (5.2% in constant dollars).
Changes in REVPAR for Worldwide System-wide Same-Store Hotels by region:
| REVPAR | ||||||||
| Region |
Reported | Constant dollars |
||||||
| North America |
7.1 | % | 7.2 | % | ||||
| Europe |
(1.9 | )% | 1.8 | % | ||||
| Asia Pacific |
6.7 | % | 6.2 | % | ||||
| Africa and the Middle East |
2.3 | % | 3.8 | % | ||||
| Latin America |
14.4 | % | 14.4 | % | ||||
2
Increases in REVPAR for Worldwide System-wide Same-Store Hotels by brand:
| REVPAR | ||||||||
| Brand |
Reported | Constant dollars |
||||||
| St. Regis/Luxury Collection |
2.7 | % | 4.4 | % | ||||
| W Hotels |
8.5 | % | 8.8 | % | ||||
| Westin |
7.2 | % | 7.6 | % | ||||
| Sheraton |
5.2 | % | 5.5 | % | ||||
| Le Méridien |
3.0 | % | 4.8 | % | ||||
| Four Points by Sheraton |
6.4 | % | 6.3 | % | ||||
| Aloft |
9.4 | % | 9.9 | % | ||||
Worldwide Same-Store Company-Operated gross operating profit margins increased approximately 160 basis points compared to 2011. International gross operating profit margins for Same-Store Company-Operated properties increased 160 basis points. North American Same-Store Company-Operated gross operating profit margins increased approximately 170 basis points, driven by REVPAR increases and cost controls.
Management fees, franchise fees and other income were $201 million, up $24 million, or 13.6% from the first quarter of 2011. Management fees increased 18.6% to $115 million and franchise fees increased 4.7% to $45 million. Year-over-year comparisons were impacted by the conversion of some franchise agreements to management contracts in Germany.
Development
During the first quarter of 2012, the Company signed 32 hotel management and franchise contracts, representing approximately 9,000 rooms, of which 22 are new builds and 10 are conversions from other brands. At March 31, 2012, the Company had approximately 365 hotels in the active pipeline representing approximately 95,000 rooms.
During the first quarter of 2012, 18 new hotels and resorts (representing approximately 4,500 rooms) entered the system, including The St. Regis Bal Harbour Resort (Florida, 213 rooms), The Westin Lake Las Vegas Resort & Spa (Nevada, 493 rooms), Sheraton Xian North City (China, 491 rooms), Le Méridien Istanbul Etiler (Turkey, 259 rooms) and W Paris Opera (France, 91 rooms). Five properties (representing approximately 1,000 rooms) were removed from the system during the quarter.
Owned, Leased and Consolidated Joint Venture Hotels
Worldwide REVPAR at Starwood branded Same-Store Owned Hotels increased 4.5% (4.9% in constant dollars) when compared to 2011. REVPAR at Starwood branded Same-Store Owned Hotels in North America increased 3.6% (3.9% in constant dollars). Internationally, Starwood branded Same-Store Owned Hotel REVPAR increased 5.8% (6.2% in constant dollars).
Revenues at Starwood branded Same-Store Owned Hotels in North America increased 3.5% while costs and expenses increased 2.4% when compared to 2011. Margins at these hotels increased approximately 90 basis points.
Revenues at Starwood branded Same-Store Owned Hotels Worldwide increased 4.1% (4.5% in constant dollars) while costs and expenses increased 2.1% (2.6% in constant dollars) when compared to 2011. Margins at these hotels increased approximately 160 basis points.
Revenues at owned, leased and consolidated joint venture hotels were $402 million, compared to $410 million in 2011. Expenses at owned, leased and consolidated joint venture hotels were $349 million compared to $361 million in 2011. First quarter results were negatively impacted by five asset sales as well as preopening costs associated with the opening of The St. Regis Bal Harbour Resort.
3
Vacation Ownership
Total vacation ownership revenues increased 3.4% to $152 million in the first quarter of 2012 when compared to 2011. Originated contract sales of vacation ownership intervals increased 1.2%, primarily due to increased tour flow from new buyers and improved sales and marketing performance. The number of contracts signed increased 3.6%, when compared to 2011, and the average price per vacation ownership unit sold decreased 2.4% to approximately $16,000, driven by inventory mix.
Residential
The Company’s residential revenues were $362 million compared to $6 million in 2011. The Company realized residential revenues for Bal Harbour during the first quarter of 2012 of $356 million and generated EBITDA of $78 million. During the first quarter of 2012, the Company closed sales of 102 units and realized cash proceeds of $263 million associated with these units. From project inception through March 31, 2012, the Company has closed contracts on approximately 45% of the total residential units.
Selling, General, Administrative and Other
Selling, general, administrative and other expenses increased to $96 million compared to $80 million in 2011. The increase was primarily due to non-recurring professional expenses and favorable reserve adjustments recorded in the prior year. We continue to target a 4% to 5% increase for the full year.
Asset Sales
During the quarter, the Company completed the sale of one wholly-owned hotel. This hotel was sold subject to a long-term franchise contract.
Capital
Gross capital spending during the quarter included approximately $29 million of maintenance capital and $50 million of development capital.
Balance Sheet
At March 31, 2012, the Company had gross debt of $2.200 billion, excluding $489 million of debt associated with securitized vacation ownership notes receivable. Additionally, the Company had cash and cash equivalents of $817 million (including $160 million of restricted cash), and net debt of $1.383 billion, compared to net debt of $1.531 billion as of December 31, 2011. Net debt at March 31, 2012, including debt and restricted cash ($21 million) associated with securitized vacation ownership notes receivables, was $1.851 billion.
At March 31, 2012, debt was approximately 80% fixed rate and 20% floating rate and its weighted average maturity was 3.9 years with a weighted average interest rate of 6.65%, excluding the securitized debt. The Company had cash (including current restricted cash) and availability under the domestic and international revolving credit facility of approximately $2.324 billion.
4
Outlook
For the Full Year 2012:
| • | Excluding Bal Harbour, adjusted EBITDA is expected to be approximately $1.070 billion to $1.100 billion, assuming: |
| • | REVPAR increases at Same-Store Company-Operated Hotels Worldwide of 6% to 8% in constant dollars (approximately 200 basis points lower in dollars at current exchange rates). |
| • | REVPAR increases at branded Same-Store Owned Hotels Worldwide of 4% to 6% in constant dollars (approximately 200 basis points lower in dollars at current exchange rates). |
| • | Margins at branded Same-Store Owned Hotels Worldwide increase 100 to 150 basis points. |
| • | Management fees, franchise fees and other income increase approximately 9% to 11%. |
| • | Earnings from our vacation ownership and residential business of approximately $150 million to $155 million. |
| • | Selling, general and administrative expenses increase 4% to 5%. |
| • | Including Bal Harbour, which is expected to contribute at least $100 million of EBITDA, adjusted EBITDA is expected to be approximately $1.170 billion to $1.200 billion. |
| • | Depreciation and amortization is expected to be approximately $295 million. |
| • | Interest expense is expected to be approximately $210 million. |
| • | Including Bal Harbour, full year effective tax rate is expected to be approximately 30%, and cash taxes are expected to be approximately $100 million. |
| • | Including Bal Harbour, EPS before special items is expected to be approximately $2.35 to $2.46. |
| • | Full year capital expenditures (excluding vacation ownership and residential inventory) is 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 $375 million. |
| • | Vacation ownership (excluding Bal Harbour) is expected to generate approximately $125 million in positive cash flow. Bal Harbour is expected to generate at least $300 million in net cash flow. |
For the three months ended June 30, 2012:
| • | Excluding Bal Harbour, adjusted EBITDA is expected to be approximately $275 million to $285 million, assuming: |
| • | REVPAR increases at Same-Store Company-Operated Hotels Worldwide of 6% to 8% in constant dollars (approximately 200 basis points lower in dollars at current exchange rates). |
| • | REVPAR increases at branded Same-Store Company Owned Hotels Worldwide of 4% to 6% in constant dollars (approximately 250 basis points lower in dollars at current exchange rates). |
5
| • | Management fees, franchise fees and other income increase approximately 9% to 11%. |
| • | Earnings from our vacation ownership and residential business are flat to up $5 million year over year. |
| • | Including Bal Harbour, which is expected to contribute at least $15 million of EBITDA, adjusted EBITDA is expected to be approximately $290 million to $300 million. |
| • | Depreciation and amortization is expected to be approximately $72 million. |
| • | Interest expense is expected to be approximately $53 million. |
| • | Including Bal Harbour, income from continuing operations is expected to be approximately $115 million to $122 million, reflecting an effective tax rate of approximately 30%. |
| • | Including Bal Harbour, EPS is expected to be approximately $0.58 to $0.62. |
6
Special Items
The Company’s special items netted to a benefit of $4 million ($5 million after-tax) in the first quarter of 2012 compared to a charge of $33 million ($29 million after-tax) in the same period of 2011.
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, |
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| 2012 | 2011 | |||||||
| Income from continuing operations before special items |
$ | 124 | $ | 58 | ||||
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| EPS before special items |
$ | 0.63 | $ | 0.30 | ||||
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| Special Items |
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| Restructuring, goodwill impairment, and other special (charges) credits, net(a) |
11 | — | ||||||
| Loss on asset dispositions and impairments, net(b) |
(7 | ) | (33 | ) | ||||
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| Total special items – pre-tax |
4 | (33 | ) | |||||
| Income tax benefit for special items(c) |
1 | 4 | ||||||
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| Total special items – after-tax |
5 | (29 | ) | |||||
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| Income from continuing operations |
$ | 129 | $ | 29 | ||||
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| EPS including special items |
$ | 0.65 | $ | 0.15 | ||||
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| (a) | During the three months ended March 31, 2012, the Company recorded a favorable adjustment of $11 million to reverse a portion of its litigation reserve. |
| (b) | During the three months ended March 31, 2012, the net loss primarily relates to the sale of one wholly-owned hotel. |
| During the three months ended March 31, 2011, the net loss primarily related to an impairment of a minority investment in a joint venture hotel located in Japan. |
| (c) | For both periods presented, represents income taxes on the special items. The three months ended March 31, 2012 also includes the recognition of a deferred tax adjustment associated with a previous transaction. |
The three months ended March 31, 2011 also includes a benefit related to the reversal of income tax reserves associated with prior dispositions.
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 on-going operations.
Starwood will be conducting a conference call to discuss the first quarter financial results at 10:30 a.m. (EDT) today at (706) 758-8764 with conference ID 66945366. The conference call will be available through a simultaneous webcast in the News & Events section of the Company’s website at http://www.starwoodhotels.com/corporate/investor_relations.html. A replay of the conference call will also be available from 1:30 p.m. (EDT) today through Thursday, May 3, 2012 at 12:00 midnight (EDT) by telephone at (855) 859-2056 with conference ID 66945366 and webcast on the corporate website.
7
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, goodwill impairment and other special charges 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 on-going 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 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, leased and managed hotels. References to System-wide 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.
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Starwood Hotels & Resorts Worldwide, Inc. is one of the leading hotel and leisure companies in the world with 1,103 properties in nearly 100 countries and 154,000 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 ElementSM. 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. Future vacation ownership units indicated in this press release include planned units on land owned by the Company or by joint ventures in which the Company has an interest that have received all major governmental land use approvals for the development of vacation ownership resorts. There can also 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. There can also be no assurance that agreements will be entered into for the hotels in the Company’s pipeline and, if entered into, the timing of any agreement and the opening of the related hotel. 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.
9
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Unaudited Consolidated Statements of Income
(In millions, except per share data)
| Three Months Ended March 31, |
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| 2012 | 2011 | % Variance |
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| Revenues |
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| Owned, leased and consolidated joint venture hotels |
$ | 402 | $ | 410 | (2.0 | ) | ||||||
| Vacation ownership and residential sales and services |
514 | 153 | n/m | |||||||||
| Management fees, franchise fees and other income |
201 | 177 | 13.6 | |||||||||
| Other revenues from managed and franchised properties (a) |
598 | 555 | 7.7 | |||||||||
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| 1,715 | 1,295 | 32.4 | ||||||||||
| Costs and Expenses |
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| Owned, leased and consolidated joint venture hotels |
349 | 361 | 3.3 | |||||||||
| Vacation ownership and residential |
393 | 111 | n/m | |||||||||
| Selling, general, administrative and other |
96 | 80 | (20.0 | ) | ||||||||
| Restructuring, goodwill impairment and other special charges (credits), net |
(11 | ) | — | n/m | ||||||||
| Depreciation |
57 | 60 | 5.0 | |||||||||
| Amortization |
6 | 8 | 25.0 | |||||||||
| Other expenses from managed and franchised properties (a) |
598 | 555 | (7.7 | ) | ||||||||
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| 1,488 | 1,175 | (26.6 | ) | |||||||||
| Operating income |
227 | 120 | 89.2 | |||||||||
| Equity (losses) earnings and gains and (losses) from unconsolidated ventures, net |
10 | 4 | n/m | |||||||||
| Interest expense, net of interest income of $0 and $1 |
(49 | ) | (54 | ) | 9.3 | |||||||
| Gain (loss) on asset dispositions and impairments, net |
(7 | ) | (33 | ) | 78.8 | |||||||
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| Income from continuing operations before taxes and noncontrolling interests |
181 | 37 | n/m | |||||||||
| Income tax benefit (expense) |
(52 | ) | (10 | ) | n/m | |||||||
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| Income (loss) from continuing operations |
129 | 27 | n/m | |||||||||
| Discontinued Operations: |
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| Income (loss) from operations, net of tax |
— | — | — | |||||||||
| Gain (loss) on dispositions, net of tax |
(1 | ) | (1 | ) | — | |||||||
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| Net income (loss) |
128 | 26 | n/m | |||||||||
| Net loss (income) attributable to noncontrolling interests |
— | 2 | (100.0 | ) | ||||||||
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| Net income (loss) attributable to Starwood |
$ | 128 | $ | 28 | n/m | |||||||
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| Earnings (Losses) Per Share – Basic |
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| Continuing operations |
$ | 0.67 | $ | 0.16 | n/m | |||||||
| Discontinued operations |
— | (0.01 | ) | (100.0 | ) | |||||||
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| Net income (loss) |
$ | 0.67 | $ | 0.15 | n/m | |||||||
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| Earnings (Losses) Per Share – Diluted |
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| Continuing operations |
$ | 0.65 | $ | 0.15 | n/m | |||||||
| Discontinued operations |
— | (0.01 | ) | (100.0 | ) | |||||||
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| Net income (loss) |
$ | 0.65 | $ | 0.14 | n/m | |||||||
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| Amounts attributable to Starwood’s Common Stockholders |
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| Continuing operations |
$ | 129 | $ | 29 | n/m | |||||||
| Discontinued operations |
(1 | ) | (1 | ) | — | |||||||
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| Net income (loss) |
$ | 128 | $ | 28 | n/m | |||||||
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| Weighted average number of shares |
192 | 187 | ||||||||||
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| Weighted average number of shares assuming dilution |
197 | 194 | ||||||||||
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| (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
10
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Consolidated Balance Sheets
(In millions, except share data)
| March 31, 2012 |
December 31, 2011 |
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| (unaudited) | ||||||||
| Assets |
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| Current assets: |
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| Cash and cash equivalents |
$ | 657 | $ | 454 | ||||
| Restricted cash |
178 | 232 | ||||||
| Accounts receivable, net of allowance for doubtful accounts of $49 and $46 |
565 | 569 | ||||||
| Inventories |
575 | 812 | ||||||
| Securitized vacation ownership notes receivable, net of allowance for doubtful accounts of $9 and $10 |
62 | 64 | ||||||
| Current deferred tax asset |
276 | 278 | ||||||
| Prepaid expenses and other |
149 | 125 | ||||||
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| Total current assets |
2,462 | 2,534 | ||||||
| Investments |
271 | 259 | ||||||
| Plant, property and equipment, net |
3,302 | 3,270 | ||||||
| Goodwill and intangible assets, net |
2,067 | 2,057 | ||||||
| Deferred tax assets |
626 | 639 | ||||||
| Other assets (a) |
385 | 355 | ||||||
| Securitized vacation ownership notes receivable |
411 | 446 | ||||||
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| Total assets |
$ | 9,524 | $ | 9,560 | ||||
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|
|||||
| Liabilities and Stockholders’ Equity |
||||||||
| Current liabilities: |
||||||||
| Short-term borrowings and current maturities of long-term debt (b) |
$ | 552 | $ | 3 | ||||
| Accounts payable |
116 | 144 | ||||||
| Current maturities of long-term securitized vacation ownership debt |
125 | 130 | ||||||
| Accrued expenses |
1,119 | 1,177 | ||||||
| Accrued salaries, wages and benefits |
307 | 375 | ||||||
| Accrued taxes and other |
131 | 163 | ||||||
|
|
|
|
|
|||||
| Total current liabilities |
2,350 | 1,992 | ||||||
| Long-term debt (b) |
1,648 | 2,194 | ||||||
| Long-term securitized vacation ownership debt |
364 | 402 | ||||||
| Deferred income taxes |
47 | 46 | ||||||
| Other liabilities |
1,947 | 1,971 | ||||||
|
|
|
|
|
|||||
| 6,356 | 6,605 | |||||||
| Commitments and contingencies |
||||||||
| Stockholders’ equity: |
||||||||
| Common stock; $0.01 par value; authorized 1,000,000,000 shares; outstanding 197,162,892 and 195,913,400 shares at March 31, 2012 and December 31, 2011, respectively |
2 | 2 | ||||||
| Additional paid-in capital |
1,005 | 963 | ||||||
| Accumulated other comprehensive loss |
(309 | ) | (348 | ) | ||||
| Retained earnings |
2,465 | 2,337 | ||||||
|
|
|
|
|
|||||
| Total Starwood stockholders’ equity |
3,163 | 2,954 | ||||||
| Noncontrolling interest |
5 | 1 | ||||||
|
|
|
|
|
|||||
| Total stockholders’ equity |
3,168 | 2,955 | ||||||
|
|
|
|
|
|||||
| Total liabilities and stockholders’ equity |
$ | 9,524 | $ | 9,560 | ||||
|
|
|
|
|
|||||
| (a) | Includes restricted cash of $3 million and $2 million at March 31, 2012 and December 31, 2011, respectively. |
| (b) | Excludes Starwood’s share of unconsolidated joint venture debt aggregating approximately $413 million and $432 million at March 31, 2012 and December 31, 2011, respectively. |
11
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Non-GAAP to GAAP Reconciliations – Historical Data
(In millions)
| Three Months Ended March 31, |
||||||||||||
| 2012 | 2011 | % Variance |
||||||||||
| Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA |
||||||||||||
| Net income (loss) |
$ | 128 | $ | 28 | n/m | |||||||
| Interest expense (a) |
49 | 59 | (16.9 | ) | ||||||||
| Income tax (benefit) expense (b) |
53 | 11 | n/m | |||||||||
| Depreciation (c) |
64 | 68 | (5.9 | ) | ||||||||
| Amortization (d) |
7 | 9 | (22.2 | ) | ||||||||
|
|
|
|
|
|
|
|||||||
| EBITDA |
301 | 175 | 72.0 | |||||||||
| Loss on asset dispositions and impairments, net |
7 | 33 | (78.8 | ) | ||||||||
| Restructuring, goodwill impairment and other special charges (credits), net |
(11 | ) | — | n/m | ||||||||
|
|
|
|
|
|
|
|||||||
| Adjusted EBITDA |
$ | 297 | $ | 208 | 42.8 | |||||||
|
|
|
|
|
|
|
|||||||
| (a) | Includes $0 million and $4 million of Starwood’s share of interest expense of unconsolidated joint ventures for the three months ended March 31, 2012 and 2011, respectively. |
| (b) | Includes $1 million of tax expense (benefit) recorded in discontinued operations for each of the three months ended March 31, 2012 and 2011, respectively. |
| (c) | Includes $7 million and $8 million of Starwood’s share of depreciation expense of unconsolidated joint ventures for the three months ended March 31, 2012 and 2011, respectively. |
| (d) | Includes $1 million of Starwood’s share of amortization expense of unconsolidated joint ventures for each of the three months ended March 31, 2012 and 2011, respectively. |
Non-GAAP to GAAP Reconciliations – Branded Same-Store Owned Hotels Worldwide
(In millions)
| Three Months Ended March 31, 2012 |
||||||||
| $ Change | % Variance | |||||||
| Revenue |
||||||||
| Revenue increase (GAAP) |
$ | 13 | 4.1 | % | ||||
| Impact of changes in foreign exchange rates |
1 | 0.4 | % | |||||
|
|
|
|
|
|||||
| Revenue increase in constant dollars |
$ | 14 | 4.5 | % | ||||
|
|
|
|
|
|||||
| Expense |
||||||||
| Expense increase (GAAP) |
$ | 6 | 2.1 | % | ||||
| Impact of changes in foreign exchange rates |
1 | 0.5 | % | |||||
|
|
|
|
|
|||||
| Expense increase in constant dollars |
$ | 7 | 2.6 | % | ||||
|
|
|
|
|
|||||
12
Non-GAAP to GAAP Reconciliation –
Earnings from Vacation Ownership and Residential Business
(In millions)
| Three Months Ended March 31, |
||||||||||||
| 2012 | 2011 | $ Variance |
||||||||||
| Earnings from vacation ownership and residential |
$ | 121 | $ | 42 | $ | 79 | ||||||
| Depreciation expense |
(5 | ) | (7 | ) | 2 | |||||||
|
|
|
|
|
|
|
|||||||
| Operating income from vacation ownership and residential |
$ | 116 | $ | 35 | $ | 81 | ||||||
|
|
|
|
|
|
|
|||||||
Non-GAAP to GAAP Reconciliation –
Earnings from Bal Harbour
(In millions)
| Three Months Ended March 31, |
||||||||||||
| 2012 | 2011 | $ Variance |
||||||||||
| Earnings from Bal Harbour |
$ | 78 | $ | (2 | ) | $ | 80 | |||||
| Depreciation expense |
— | — | — | |||||||||
|
|
|
|
|
|
|
|||||||
| Operating income from Bal Harbour |
$ | 78 | $ | (2 | ) | $ | 80 | |||||
|
|
|
|
|
|
|
|||||||
13
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Non-GAAP to GAAP Reconciliations – Future Performance
(In millions, except per share data)
Low Case
| Three Months Ended |
Year Ended December 31, 2012 |
|||||||
| $ | 115 | Net income | $ | 469 | ||||
| 53 | Interest expense | 210 | ||||||
| 50 | Income tax expense | 200 | ||||||
| 72 | Depreciation and amortization | 295 | ||||||
|
|
|
|
|
|||||
| 290 | EBITDA | 1,174 | ||||||
| — | (Gain) loss on asset dispositions and impairments, net | 7 | ||||||
| — | Restructuring, goodwill impairment and other special charges (credits), net | (11 | ) | |||||
|
|
|
|
|
|||||
| $ | 290 | Adjusted EBITDA | $ | 1,170 | ||||
|
|
|
|
|
|||||
| Three Months Ended |
Year Ended December 31, 2012 |
|||||||
| $ | 115 | Income from continuing operations before special items | $ | 465 | ||||
|
|
|
|
|
|||||
| $ | 0.58 | EPS before special items | $ | 2.35 | ||||
|
|
|
|
|
|||||
| Special Items | ||||||||
| — | Restructuring and other special credits | 11 | ||||||
| — | Gain (loss) on asset dispositions and impairments, net | (7 | ) | |||||
|
|
|
|
|
|||||
| — | Total special items – pre-tax | 4 | ||||||
| — | Income tax benefit associated with special items | 1 | ||||||
|
|
|
|
|
|||||
| — | Total special items – after-tax | 5 | ||||||
|
|
|
|
|
|||||
| $ | 115 | Income from continuing operations | $ | 470 | ||||
|
|
|
|
|
|||||
| $ | 0.58 | EPS including special items | $ | 2.38 | ||||
|
|
|
|
|
|||||
High Case
| Three Months Ended |
Year Ended December 31, 2012 |
|||||||
| $ | 122 | Net income | $ | 490 | ||||
| 53 | Interest expense | 210 | ||||||
| 53 | Income tax expense | 209 | ||||||
| 72 | Depreciation and amortization | 295 | ||||||
|
|
|
|
|
|||||
| 300 | EBITDA | 1,204 | ||||||
| — | (Gain) loss on asset dispositions and impairments, net | 7 | ||||||
| — | Restructuring, goodwill impairment and other special charges (credits), net | (11 | ) | |||||
|
|
|
|
|
|||||
| $ | 300 | Adjusted EBITDA | $ | 1,200 | ||||
|
|
|
|
|
|||||
| Three Months Ended |
Year Ended December 31, 2012 |
|||||||
| $ | 122 | Income from continuing operations before special items | $ | 486 | ||||
|
|
|
|
|
|||||
| $ | 0.62 | EPS before special items | $ | 2.46 | ||||
|
|
|
|
|
|||||
| Special Items | ||||||||
| — | Restructuring and other special credits | 11 | ||||||
| — | Gain (loss) on asset dispositions and impairments, net | (7 | ) | |||||
|
|
|
|
|
|||||
| — | Total special items – pre-tax | 4 | ||||||
| — | Income tax benefit associated with special items | 1 | ||||||
|
|
|
|
|
|||||
| — | Total special items – after-tax | 5 | ||||||
|
|
|
|
|
|||||
| $ | 122 | Income from continuing operations | $ | 491 | ||||
|
|
|
|
|
|||||
| $ | 0.62 | EPS including special items | $ | 2.48 | ||||
|
|
|
|
|
|||||
14
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Non-GAAP to GAAP Reconciliations –
Future Earnings from Vacation Ownership and Residential Business
Excluding Bal Harbour
(In millions)
Low Case
| Three Months Ended June 30, |
||||||||||||
| 2012 | 2011 | $ Variance |
||||||||||
| Earnings from vacation ownership and residential |
$ | 34 | $ | 34 | $ | — | ||||||
| Depreciation expense |
(5 | ) | (5 | ) | — | |||||||
|
|
|
|
|
|
|
|||||||
| Operating income from vacation ownership and residential |
$ | 29 | $ | 29 | $ | — | ||||||
|
|
|
|
|
|
|
|||||||
| Year Ended December 31, 2012 |
||||
| Earnings from vacation ownership and residential |
$ | 150 | ||
| Depreciation expense |
(20 | ) | ||
|
|
|
|||
| Operating income from vacation ownership and residential |
$ | 130 | ||
|
|
|
|||
High Case
| Three Months Ended June 30, |
||||||||||||
| 2012 | 2011 | $ Variance |
||||||||||
| Earnings from vacation ownership and residential |
$ | 39 | $ | 34 | $ | 5 | ||||||
| Depreciation expense |
(5 | ) | (5 | ) | — | |||||||
|
|
|
|
|
|
|
|||||||
| Operating income from vacation ownership and residential |
$ | 34 | $ | 29 | $ | 5 | ||||||
|
|
|
|
|
|
|
|||||||
| Year Ended December 31, 2012 |
||||
| Earnings from vacation ownership and residential |
$ | 155 | ||
| Depreciation expense |
(20 | ) | ||
|
|
|
|||
| Operating income from vacation ownership and residential |
$ | 135 | ||
|
|
|
|||
15
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Non-GAAP to GAAP Reconciliations –
Future Earnings from Bal Harbour
(In millions)
| Three Months Ended June 30, |
||||||||||||
| 2012 | 2011 | $ Variance |
||||||||||
| Earnings from Bal Harbour |
$ | 15 | $ | (3 | ) | $ | 18 | |||||
| Depreciation expense |
— | — | — | |||||||||
|
|
|
|
|
|
|
|||||||
| Operating income from Bal Harbour |
$ | 15 | $ | (3 | ) | $ | 18 | |||||
|
|
|
|
|
|
|
|||||||
| Year Ended December 31, 2012 |
||||
| Earnings from Bal Harbour |
$ | 100 | ||
| Depreciation expense |
— | |||
|
|
|
|||
| Operating income from Bal Harbour |
$ | 100 | ||
|
|
|
|||
16
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 |
2012 | 2011 | % Variance |
|||||||||
| Revenue |
||||||||||||
| Same-Store Owned Hotels (a) |
$ | 352 | $ | 337 | 4.5 | |||||||
| Hotels Sold or Closed in 2012 and 2011 |
2 | 31 | (93.5 | ) | ||||||||
| Hotels Without Comparable Results |
42 | 36 | 16.7 | |||||||||
| Other ancillary hotel operations |
6 | 6 | — | |||||||||
|
|
|
|
|
|
|
|||||||
| Total Owned, Leased and Consolidated Joint Venture Hotels Revenue |
$ | 402 | $ | 410 | (2.0 | ) | ||||||
|
|
|
|
|
|
|
|||||||
| Costs and Expenses |
||||||||||||
| Same-Store Owned Hotels (a) |
$ | 294 | $ | 287 | (2.4 | ) | ||||||
| Hotels Sold or Closed in 2012 and 2011 |
2 | 31 | 93.5 | |||||||||
| Hotels Without Comparable Results |
47 | 37 | (27.0 | ) | ||||||||
| Other ancillary hotel operations |
6 | 6 | — | |||||||||
|
|
|
|
|
|
|
|||||||
| Total Owned, Leased and Consolidated Joint Venture Hotels Costs and Expenses |
$ | 349 | $ | 361 | 3.3 | |||||||
|
|
|
|
|
|
|
|||||||
| Three Months Ended March 31, |
||||||||||||
| Same-Store Owned Hotels North America |
2012 | 2011 | % Variance |
|||||||||
| Revenue |
||||||||||||
| Same-Store Owned Hotels (a) |
$ | 210 | $ | 202 | 4.0 | |||||||
| Hotels Sold or Closed in 2012 and 2011 |
2 | 27 | (92.6 | ) | ||||||||
| Hotels Without Comparable Results |
32 | 25 | 28.0 | |||||||||
| Other ancillary hotel operations |
— | — | — | |||||||||
|
|
|
|
|
|
|
|||||||
| Total Owned, Leased and Consolidated Joint Venture Hotels Revenue |
$ | 244 | $ | 254 | (3.9 | ) | ||||||
|
|
|
|
|
|
|
|||||||
| Costs and Expenses |
||||||||||||
| Same-Store Owned Hotels (a) |
$ | 178 | $ | 173 | 2.9 | |||||||
| Hotels Sold or Closed in 2012 and 2011 |
2 | 27 | 92.6 | |||||||||
| Hotels Without Comparable Results |
33 | 21 | (57.1 | ) | ||||||||
| Other ancillary hotel operations |
— | — | — | |||||||||
|
|
|
|
|
|
|
|||||||
| Total Owned, Leased and Consolidated Joint Venture Hotels Costs and Expenses |
$ | 213 | $ | 221 | 3.6 | |||||||
|
|
|
|
|
|
|
|||||||
| Three Months Ended March 31, |
||||||||||||
| Same-Store Owned Hotels International |
2012 | 2011 | % Variance |
|||||||||
| Revenue |
||||||||||||
| Same-Store Owned Hotels (a) |
$ | 142 | $ | 135 | 5.2 | |||||||
| Hotels Sold or Closed in 2012 and 2011 |
— | 4 | (100.0 | ) | ||||||||
| Hotels Without Comparable Results |
10 | 11 | (9.1 | ) | ||||||||
| Other ancillary hotel operations |
6 | 6 | — | |||||||||
|
|
|
|
|
|
|
|||||||
| Total Owned, Leased and Consolidated Joint Venture Hotels Revenue |
$ | 158 | $ | 156 | 1.3 | |||||||
|
|
|
|
|
|
|
|||||||
| Costs and Expenses |
||||||||||||
| Same-Store Owned Hotels (a) |
$ | 116 | $ | 114 | (1.8 | ) | ||||||
| Hotels Sold or Closed in 2012 and 2011 |
— | 4 | 100.0 | |||||||||
| Hotels Without Comparable Results |
14 | 16 | 12.5 | |||||||||
| Other ancillary hotel operations |
6 | 6 | — | |||||||||
|
|
|
|
|
|
|
|||||||
| Total Owned, Leased and Consolidated Joint Venture Hotels Costs and Expenses |
$ | 136 | $ | 140 | 2.9 | |||||||
|
|
|
|
|
|
|
|||||||
| (a) | Same-Store Owned Hotel results exclude five hotels sold and 11 hotels without comparable results for the three months ended March 31, 2012. |
n/m = not meaningful
17
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 | ||||||||||||||||||||||||||||||||||
| 2012 | 2011 | Variance | 2012 | 2011 | Variance | 2012 | 2011 | Variance | ||||||||||||||||||||||||||||
| TOTAL HOTELS |
||||||||||||||||||||||||||||||||||||
| REVPAR ($) |
110.02 | 104.00 | 5.8 | % | 109.08 | 101.84 | 7.1 | % | 111.28 | 106.89 | 4.1 | % | ||||||||||||||||||||||||
| ADR ($) |
168.60 | 165.81 | 1.7 | % | 160.74 | 156.54 | 2.7 | % | 180.16 | 179.43 | 0.4 | % | ||||||||||||||||||||||||
| Occupancy (%) |
65.3 | % | 62.7 | % | 2.6 | 67.9 | % | 65.1 | % | 2.8 | 61.8 | % | 59.6 | % | 2.2 | |||||||||||||||||||||
| SHERATON |
||||||||||||||||||||||||||||||||||||
| REVPAR ($) |
92.82 | 88.20 | 5.2 | % | 90.06 | 84.42 | 6.7 | % | 96.20 | 92.86 | 3.6 | % | ||||||||||||||||||||||||
| ADR ($) |
147.41 | 144.70 | 1.9 | % | 136.64 | 133.15 | 2.6 | % | 162.09 | 160.30 | 1.1 | % | ||||||||||||||||||||||||
| Occupancy (%) |
63.0 | % | 61.0 | % | 2.0 | 65.9 | % | 63.4 | % | 2.5 | 59.3 | % | 57.9 | % | 1.4 | |||||||||||||||||||||
| WESTIN |
||||||||||||||||||||||||||||||||||||
| REVPAR ($) |
127.05 | 118.56 | 7.2 | % | 125.50 | 117.46 | 6.8 | % | 131.08 | 121.40 | 8.0 | % | ||||||||||||||||||||||||
| ADR ($) |
182.96 | 179.44 | 2.0 | % | 177.65 | 172.81 | 2.8 | % | 197.65 | 198.59 | (0.5 | %) | ||||||||||||||||||||||||
| Occupancy (%) |
69.4 | % | 66.1 | % | 3.3 | 70.6 | % | 68.0 | % | 2.6 | 66.3 | % | 61.1 | % | 5.2 | |||||||||||||||||||||
| ST. REGIS/LUXURY COLLECTION |
||||||||||||||||||||||||||||||||||||
| REVPAR ($) |
177.01 | 172.32 | 2.7 | % | 222.82 | 208.85 | 6.7 | % | 151.22 | 151.53 | (0.2 | %) | ||||||||||||||||||||||||
| ADR ($) |
291.65 | 290.86 | 0.3 | % | 325.46 | 311.92 | 4.3 | % | 268.52 | 276.23 | (2.8 | %) | ||||||||||||||||||||||||
| Occupancy (%) |
60.7 | % | 59.2 | % | 1.5 | 68.5 | % | 67.0 | % | 1.5 | 56.3 | % | 54.9 | % | 1.4 | |||||||||||||||||||||
| LE MERIDIEN |
||||||||||||||||||||||||||||||||||||
| REVPAR ($) |
120.65 | 117.14 | 3.0 | % | 170.06 | 161.26 | 5.5 | % | 115.38 | 112.40 | 2.7 | % | ||||||||||||||||||||||||
| ADR ($) |
182.36 | 181.99 | 0.2 | % | 218.38 | 211.15 | 3.4 | % | 177.75 | 178.19 | (0.2 | %) | ||||||||||||||||||||||||
| Occupancy (%) |
66.2 | % | 64.4 | % | 1.8 | 77.9 | % | 76.4 | % | 1.5 | 64.9 | % | 63.1 | % | 1.8 | |||||||||||||||||||||
| W |
||||||||||||||||||||||||||||||||||||
| REVPAR ($) |
195.40 | 180.09 | 8.5 | % | 185.30 | 170.36 | 8.8 | % | 232.24 | 215.52 | 7.8 | % | ||||||||||||||||||||||||
| ADR ($) |
266.32 | 255.59 | 4.2 | % | 249.47 | 240.77 | 3.6 | % | 331.56 | 310.59 | 6.8 | % | ||||||||||||||||||||||||
| Occupancy (%) |
73.4 | % | 70.5 | % | 2.9 | 74.3 | % | 70.8 | % | 3.5 | 70.0 | % | 69.4 | % | 0.6 | |||||||||||||||||||||
| FOUR POINTS |
||||||||||||||||||||||||||||||||||||
| REVPAR ($) |
74.55 | 70.07 | 6.4 | % | 67.57 | 63.47 | 6.5 | % | 86.09 | 80.95 | 6.3 | % | ||||||||||||||||||||||||
| ADR ($) |
115.95 | 113.11 | 2.5 | % | 105.21 | 103.23 | 1.9 | % | 133.67 | 129.06 | 3.6 | % | ||||||||||||||||||||||||
| Occupancy (%) |
64.3 | % | 61.9 | % | 2.4 | 64.2 | % | 61.5 | % | 2.7 | 64.4 | % | 62.7 | % | 1.7 | |||||||||||||||||||||
| ALOFT |
||||||||||||||||||||||||||||||||||||
| REVPAR ($) |
70.35 | 64.29 | 9.4 | % | 69.82 | 63.46 | 10.0 | % | ||||||||||||||||||||||||||||
| ADR ($) |
106.53 | 109.47 | (2.7 | %) | 106.34 | 106.46 | (0.1 | %) | ||||||||||||||||||||||||||||
| Occupancy (%) |
66.0 | % | 58.7 | % | 7.3 | 65.7 | % | 59.6 | % | 6.1 | ||||||||||||||||||||||||||
| (1) | Includes same store owned, leased, managed, and franchised hotels |
18
Starwood Hotels & Resorts Worldwide, Inc.
Worldwide Hotel Results—Same Store
For the Three Months Ended March 31,
UNAUDITED
| Systemwide (1) | Company Operated (2) | |||||||||||||||||||||||
| 2012 | 2011 | Variance | 2012 | 2011 | Variance | |||||||||||||||||||
| TOTAL WORLDWIDE |
||||||||||||||||||||||||
| REVPAR ($) |
110.02 | 104.00 | 5.8 | % | 124.95 | 117.73 | 6.1 | % | ||||||||||||||||
| ADR ($) |
168.60 | 165.81 | 1.7 | % | 189.64 | 185.32 | 2.3 | % | ||||||||||||||||
| Occupancy (%) |
65.3 | % | 62.7 | % | 2.6 | 65.9 | % | 63.5 | % | 2.4 | ||||||||||||||
| NORTH AMERICA |
||||||||||||||||||||||||
| REVPAR ($) |
109.08 | 101.84 | 7.1 | % | 138.03 | 128.24 | 7.6 | % | ||||||||||||||||
| ADR ($) |
160.74 | 156.54 | 2.7 | % | 195.46 | 187.19 | 4.4 | % | ||||||||||||||||
| Occupancy (%) |
67.9 | % | 65.1 | % | 2.8 | 70.6 | % | 68.5 | % | 2.1 | ||||||||||||||
| EUROPE |
||||||||||||||||||||||||
| REVPAR ($) |
110.63 | 112.80 | (1.9 | %) | 118.20 | 120.67 | (2.0 | %) | ||||||||||||||||
| ADR ($) |
193.21 | 200.19 | (3.5 | %) | 201.61 | 209.71 | (3.9 | %) | ||||||||||||||||
| Occupancy (%) |
57.3 | % | 56.3 | % | 1.0 | 58.6 | % | 57.5 | % | 1.1 | ||||||||||||||
| AFRICA & MIDDLE EAST |
||||||||||||||||||||||||
| REVPAR ($) |
123.42 | 120.63 | 2.3 | % | 123.98 | 121.54 | 2.0 | % | ||||||||||||||||
| ADR ($) |
191.47 | 196.59 | (2.6 | %) | 192.93 | 198.50 | (2.8 | %) | ||||||||||||||||
| Occupancy (%) |
64.5 | % | 61.4 | % | 3.1 | 64.3 | % | 61.2 | % | 3.1 | ||||||||||||||
| ASIA PACIFIC |
||||||||||||||||||||||||
| REVPAR ($) |
108.78 | 101.92 | 6.7 | % | 109.76 | 101.01 | 8.7 | % | ||||||||||||||||
| ADR ($) |
171.54 | 167.90 | 2.2 | % | 173.50 | 167.31 | 3.7 | % | ||||||||||||||||
| Occupancy (%) |
63.4 | % | 60.7 | % | 2.7 | 63.3 | % | 60.4 | % | 2.9 | ||||||||||||||
| LATIN AMERICA |
||||||||||||||||||||||||
| REVPAR ($) |
106.17 | 92.79 | 14.4 | % | 116.96 | 99.25 | 17.8 | % | ||||||||||||||||
| ADR ($) |
169.64 | 153.17 | 10.8 | % | 178.31 | 161.78 | 10.2 | % | ||||||||||||||||
| Occupancy (%) |
62.6 | % | 60.6 | % | 2.0 | 65.6 | % | 61.3 | % | 4.3 | ||||||||||||||
| (1) | Includes same store owned, leased, managed, and franchised hotels |
| (2) | Includes same store owned, leased, and managed hotels |
19
Starwood Hotels & Resorts Worldwide, Inc.
Owned Hotel Results—Same Store (1)
For the Three Months Ended March 31,
UNAUDITED
| WORLDWIDE | NORTH AMERICA | INTERNATIONAL | ||||||||||||||||||||||||||||||||||
| 2012 | 2011 | Variance | 2012 | 2011 | Variance | 2012 | 2011 | Variance | ||||||||||||||||||||||||||||
| 48 Hotels | 24 Hotels | 24 Hotels | ||||||||||||||||||||||||||||||||||
| TOTAL HOTELS |
||||||||||||||||||||||||||||||||||||
| REVPAR ($) |
148.15 | 141.43 | 4.8 | % | 156.95 | 150.89 | 4.0 | % | 136.80 | 129.30 | 5.8 | % | ||||||||||||||||||||||||
| ADR ($) |
213.39 | 206.77 | 3.2 | % | 218.38 | 210.32 | 3.8 | % | 206.41 | 201.67 | 2.4 | % | ||||||||||||||||||||||||
| Occupancy (%) |
69.4 | % | 68.4 | % | 1.0 | 71.9 | % | 71.7 | % | 0.2 | 66.3 | % | 64.1 | % | 2.2 | |||||||||||||||||||||
| Total Revenue |
351,912 | 337,326 | 4.3 | % | 210,213 | 202,480 | 3.8 | % | 141,699 | 134,846 | 5.1 | % | ||||||||||||||||||||||||
| Total Expenses |
293,655 | 287,594 | (2.1 | %) | 177,431 | 173,485 | (2.3 | %) | 116,224 | 114,109 | (1.9 | %) | ||||||||||||||||||||||||
| 43 Hotels | 19 Hotels | 24 Hotels | ||||||||||||||||||||||||||||||||||
| BRANDED HOTELS |
||||||||||||||||||||||||||||||||||||
| REVPAR ($) |
151.96 | 145.36 | 4.5 | % | 165.82 | 160.11 | 3.6 | % | 136.80 | 129.30 | 5.8 | % | ||||||||||||||||||||||||
| ADR ($) |
216.01 | 208.45 | 3.6 | % | 223.87 | 213.78 | 4.7 | % | 206.41 | 201.67 | 2.4 | % | ||||||||||||||||||||||||
| Occupancy (%) |
70.3 | % | 69.7 | % | 0.6 | 74.1 | % | 74.9 | % | (0.8 | ) | 66.3 | % | 64.1 | % | 2.2 | ||||||||||||||||||||
| Total Revenue |
332,349 | 319,122 | 4.1 | % | 190,650 | 184,277 | 3.5 | % | 141,699 | 134,846 | 5.1 | % | ||||||||||||||||||||||||
| Total Expenses |
274,576 | 268,820 | (2.1 | %) | 158,352 | 154,711 | (2.4 | %) | 116,224 | 114,109 | (1.9 | %) | ||||||||||||||||||||||||
| (1) | Hotel results exclude five hotels sold and 11 hotels without comparable results during 2011 & 2012 |
| * | Revenues & Expenses above are represented in ‘000’s |
20
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Management Fees, Franchise Fees and Other Income
For the Three Months Ended March 31,
UNAUDITED ($ millions)
| Worldwide | ||||||||||||||||
| 2012 | 2011 | $ Variance | % Variance | |||||||||||||
| Management Fees: |
||||||||||||||||
| Base Fees |
76 | 67 | 9 | 13.4 | % | |||||||||||
| Incentive Fees |
39 | 30 | 9 | 30.0 | % | |||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total Management Fees |
115 | 97 | 18 | 18.6 | % | |||||||||||
| Franchise Fees |
45 | 43 | 2 | 4.7 | % | |||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total Management & Franchise Fees |
160 | 140 | 20 | 14.3 | % | |||||||||||
| Other Management & Franchise Revenues (1) |
36 | 32 | 4 | 12.5 | % | |||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total Management & Franchise Revenues |
196 | 172 | 24 | 14.0 | % | |||||||||||
| Other |
5 | 5 | 0 | 0.0 | % | |||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Management Fees, Franchise Fees & Other Income |
201 | 177 | 24 | 13.6 | % | |||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| (1) | Other Management & Franchise Revenues includes the amortization of deferred gains of approximately $21 in 2012 and 2011, resulting from the sales of hotels subject to long-term management contracts and termination fees. |
21
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Vacation Ownership & Residential Revenues and Expenses
For the Three Months Ended March 31,
UNAUDITED ($ millions)
| 2012 | 2011 | $ Variance | % Variance | |||||||||||||
| Originated Sales Revenues (1) – Vacation Ownership Sales |
83 | 82 | 1 | 1.2 | % | |||||||||||
| Other Sales and Services Revenues (2) |
70 | 66 | 4 | 6.1 | % | |||||||||||
| Deferred Revenues – Percentage of Completion |
1 | — | 1 | 0.0 | % | |||||||||||
| Deferred Revenues – Other (3) |
(2 | ) | (1 | ) | (1 | ) | (100.0 | %) | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Vacation Ownership Sales and Services Revenues |
152 | 147 | 5 | 3.4 | % | |||||||||||
| Residential Sales and Services Revenues (4) |
362 | 6 | 356 | n/m | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total Vacation Ownership & Residential Sales and Services Revenues |
514 | 153 | 361 | n/m | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Originated Sales Expenses (5) – Vacation Ownership Sales |
59 | 58 | (1 | ) | (1.7 | %) | ||||||||||
| Other Expenses (6) |
53 | 48 | (5 | ) | (10.4 | %) | ||||||||||
| Deferred Expenses – Percentage of Completion |
— | — | — | 0.0 | % | |||||||||||
| Deferred Expenses – Other |
3 | 3 | — | 0.0 | % | |||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Vacation Ownership Expenses |
115 | 109 | (6 | ) | (5.5 | %) | ||||||||||
| Residential Expenses (4) |
278 | 2 | (276 | ) | n/m | |||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total Vacation Ownership & Residential Expenses |
393 | 111 | (282 | ) | n/m | |||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| (1) | 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 2012, includes $356 million of revenues and $278 million of expenses associated with the St. Regis Bal Harbour residential project |
| (5) | Timeshare cost of sales and sales & marketing expenses before deferrals of sales expenses for U.S. GAAP reporting purposes |
| (6) | Includes resort, general and administrative, and other miscellaneous expenses |
Note: Deferred revenue is calculated based on the Percentage of Completion ("POC") of the project. Deferred expenses, also based on POC, include product costs and direct sales and marketing costs only. Indirect sales and marketing costs are not deferred per ASC 978-720-25 and ASC 978-340-25.
n/m = not meaningful
22
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Hotels Without Comparable Results & Other Selected Items
As of March 31, 2012
UNAUDITED ($ millions)
| Properties without comparable results in 2012 and 2011: | ||
| Property |
Location | |
| St. Regis Bal Harbour | Bal Harbour, FL | |
| The Westin Peachtree Plaza | Atlanta, GA | |
| W New Orleans—French Quarter | New Orleans, LA | |
| W London | London, England | |
| Grand Hotel—Florence | Florence, Italy | |
| Sheraton Kauai | Koloa, HI | |
| Hotel Alfonso | Seville, Spain | |
| Four Points Tucson | Tucson, AZ | |
| The Clarion Hotel | Millbrae, CA | |
| Hotel Gritti Palace | Venice, Italy | |
| Hotel Maria Cristina | San Sebastian, Spain | |
| Properties sold or closed in 2012 and 2011: | ||
| Property |
Location | |
| Atlanta Perimeter | Atlanta, GA | |
| Hotel Bristol | Vienna, Austria | |
| The Westin Gaslamp Quarter | San Diego, CA | |
| W City Center | Chicago, IL | |
| Boston Park Plaza | Boston, MA | |
Revenues and Expenses Associated with Assets Sold or Closed in 2012 and 2011: (1)
| Q1 | Q2 | Q3 | Q4 | Full Year | ||||||||||||||||
| Hotels Sold or Closed in 2011: |
||||||||||||||||||||
| 2011 |
||||||||||||||||||||
| Revenues |
$ | 28 | $ | 23 | $ | 5 | $ | — | $ | 56 | ||||||||||
| Expenses (excluding depreciation) |
$ | 28 | $ | 19 | $ | 4 | $ | — | $ | 51 | ||||||||||
| Hotels Sold or Closed in 2012: |
||||||||||||||||||||
| 2012 |
||||||||||||||||||||
| Revenues |
$ | 2 | $ | — | $ | — | $ | — | $ | 2 | ||||||||||
| Expenses (excluding depreciation) |
$ | 2 | $ | — | $ | — | $ | — | $ | 2 | ||||||||||
| 2011 |
||||||||||||||||||||
| Revenues |
$ | 3 | $ | 3 | $ | 2 | $ | 2 | $ | 10 | ||||||||||
| Expenses (excluding depreciation) |
$ | 3 | $ | 3 | $ | 3 | $ | 1 | $ | 10 | ||||||||||
| (1) | Results consist of 1 hotel sold in 2012 and 4 hotels sold in 2011. These amounts are included in the revenues and expenses from owned, leased and consolidated joint venture hotels in the statements of income for 2012 and 2011. |
23
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Capital Expenditures
For the Three Months Ended March 31, 2012
UNAUDITED ($ millions)
| Maintenance Capital Expenditures: (1) |
||||
| Owned, Leased and Consolidated Joint Venture Hotels |
11 | |||
| Corporate/IT |
18 | |||
|
|
|
|||
| Subtotal |
29 | |||
| Vacation Ownership Capital Expenditures: |
||||
| Net capital expenditures for inventory (excluding St. Regis Bal Harbour) (2) |
(11 | ) | ||
| Capital expenditures for inventory—St.Regis Bal Harbour |
12 | |||
|
|
|
|||
| Subtotal |
1 | |||
| Development Capital |
50 | |||
|
|
|
|||
| Total Capital Expenditures |
80 | |||
|
|
|
| (1) | Maintenance capital expenditures include improvements that extend the useful life of the asset. |
| (2) | Represents gross inventory capital expenditures of $10M in the three months ended March 31, 2012, less cost of sales of $21M in the three months ended March 31, 2012. |
24
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
2012 Divisional Hotel Inventory Summary by Ownership by Brand*
As of March 31, 2012
| NAD | EUROPE | AME | LAD | ASIA | Total | |||||||||||||||||||||||||||||||||||||||||||
| Hotels | Rooms | Hotels | Rooms | Hotels | Rooms | Hotels | Rooms | Hotels | Rooms | Hotels | Rooms | |||||||||||||||||||||||||||||||||||||
| Owned |
||||||||||||||||||||||||||||||||||||||||||||||||
| Sheraton |
6 | 3,528 | 4 | 705 | — | — | 5 | 2,699 | 2 | 821 | 17 | 7,753 | ||||||||||||||||||||||||||||||||||||
| Westin |
4 | 2,399 | 3 | 650 | — | — | 3 | 902 | 1 | 273 | 11 | 4,224 | ||||||||||||||||||||||||||||||||||||
| Four Points |
2 | 327 | — | — | — | — | — | — | — | — | 2 | 327 | ||||||||||||||||||||||||||||||||||||
| W |
5 | 1,795 | 2 | 665 | — | — | — | — | — | — | 7 | 2,460 | ||||||||||||||||||||||||||||||||||||
| Luxury Collection |
1 | 643 | 5 | 584 | — | — | 1 | 181 | — | — | 7 | 1,408 | ||||||||||||||||||||||||||||||||||||
| St. Regis |
3 | 702 | 2 | 261 | — | — | — | — | 1 | 160 | 6 | 1,123 | ||||||||||||||||||||||||||||||||||||
| Le Meridien |
— | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
| Aloft |
2 | 272 | — | — | — | — | — | — | — | — | 2 | 272 | ||||||||||||||||||||||||||||||||||||
| Element |
1 | 123 | — | — | — | — | — | — | — | — | 1 | 123 | ||||||||||||||||||||||||||||||||||||
| Other |
6 | 1,654 | — | — | — | — | — | — | — | — | 6 | 1,654 | ||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
| Total Owned |
30 | 11,443 | 16 | 2,865 | — | — | 9 | 3,782 | 4 | 1,254 | 59 | 19,344 | ||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
| Managed & UJV |
||||||||||||||||||||||||||||||||||||||||||||||||
| Sheraton |
38 | 26,523 | 41 | 11,924 | 32 | 8,907 | 15 | 2,938 | 75 | 26,963 | 201 | 77,255 | ||||||||||||||||||||||||||||||||||||
| Westin |
54 | 28,377 | 12 | 4,098 | 4 | 1,086 | 3 | 886 | 29 | 9,872 | 102 | 44,319 | ||||||||||||||||||||||||||||||||||||
| Four Points |
1 | 171 | 6 | 1,013 | 7 | 1,329 | 4 | 517 | 15 | 4,612 | 33 | 7,642 | ||||||||||||||||||||||||||||||||||||
| W |
23 | 6,902 | 3 | 364 | 1 | 441 | 2 | 433 | 6 | 1,436 | 35 | 9,576 | ||||||||||||||||||||||||||||||||||||
| Luxury Collection |
4 | 1,648 | 19 | 2,997 | 5 | 1,384 | 7 | 290 | 6 | 1,440 | 41 | 7,759 | ||||||||||||||||||||||||||||||||||||
| St. Regis |
9 | 1,811 | 2 | 223 | 1 | 377 | 2 | 309 | 8 | 2,049 | 22 | 4,769 | ||||||||||||||||||||||||||||||||||||
| Le Meridien |
4 | 607 | 21 | 6,131 | 31 | 7,073 | — | — | 26 | 7,236 | 82 | 21,047 | ||||||||||||||||||||||||||||||||||||
| Aloft |
— | — | 2 | 399 | 1 | 408 | 2 | 281 | 5 | 1,034 | 10 | 2,122 | ||||||||||||||||||||||||||||||||||||
| Element |
— | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
| Other |
1 | 773 | 1 | 165 | — | — | — | — | — | — | 2 | 938 | ||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
| Total Managed & UJV |
134 | 66,812 | 107 | 27,314 | 82 | 21,005 | 35 | 5,654 | 170 | 54,642 | 528 | 175,427 | ||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
| Franchised |
||||||||||||||||||||||||||||||||||||||||||||||||
| Sheraton |
160 | 47,721 | 15 | 4,108 | 2 | 403 | 9 | 2,332 | 14 | 6,288 | 200 | 60,852 | ||||||||||||||||||||||||||||||||||||
| Westin |
60 | 19,472 | 3 | 1,176 | — | — | 4 | 1,309 | 8 | 2,231 | 75 | 24,188 | ||||||||||||||||||||||||||||||||||||
| Four Points |
105 | 16,617 | 5 | 835 | — | — | 8 | 1,276 | 8 | 1,441 | 126 | 20,169 | ||||||||||||||||||||||||||||||||||||
| W |
— | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
| Luxury Collection |
8 | 1,621 | 11 | 1,529 | — | — | 2 | 248 | 10 | 2,359 | 31 | 5,757 | ||||||||||||||||||||||||||||||||||||
| St. Regis |
— | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
| Le Meridien |
8 | 2,161 | 5 | 1,455 | — | — | 1 | 111 | 3 | 714 | 17 | 4,441 | ||||||||||||||||||||||||||||||||||||
| Aloft |
41 | 5,965 | — | — | — | — | — | — | 3 | 471 | 44 | 6,436 | ||||||||||||||||||||||||||||||||||||
| Element |
9 | 1,518 | — | — | — | — | — | — | — | — | 9 | 1,518 | ||||||||||||||||||||||||||||||||||||
| Other |
1 | 275 | — | — | — | — | — | — | — | — | 1 | 275 | ||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
| Total Franchised |
392 | 95,350 | 39 | 9,103 | 2 | 403 | 24 | 5,276 | 46 | 13,504 | 503 | 123,636 | ||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
| Systemwide |
||||||||||||||||||||||||||||||||||||||||||||||||
| Sheraton |
204 | 77,772 | 60 | 16,737 | 34 | 9,310 | 29 | 7,969 | 91 | 34,072 | 418 | 145,860 | ||||||||||||||||||||||||||||||||||||
| Westin |
118 | 50,248 | 18 | 5,924 | 4 | 1,086 | 10 | 3,097 | 38 | 12,376 | 188 | 72,731 | ||||||||||||||||||||||||||||||||||||
| Four Points |
108 | 17,115 | 11 | 1,848 | 7 | 1,329 | 12 | 1,793 | 23 | 6,053 | 161 | 28,138 | ||||||||||||||||||||||||||||||||||||
| W |
28 | 8,697 | 5 | 1,029 | 1 | 441 | 2 | 433 | 6 | 1,436 | 42 | 12,036 | ||||||||||||||||||||||||||||||||||||
| Luxury Collection |
13 | 3,912 | 35 | 5,110 | 5 | 1,384 | 10 | 719 | 16 | 3,799 | 79 | 14,924 | ||||||||||||||||||||||||||||||||||||
| St. Regis |
12 | 2,513 | 4 | 484 | 1 | 377 | 2 | 309 | 9 | 2,209 | 28 | 5,892 | ||||||||||||||||||||||||||||||||||||
| Le Meridien |
12 | 2,768 | 26 | 7,586 | 31 | 7,073 | 1 | 111 | 29 | 7,950 | 99 | 25,488 | ||||||||||||||||||||||||||||||||||||
| Aloft |
43 | 6,237 | 2 | 399 | 1 | 408 | 2 | 281 | 8 | 1,505 | 56 | 8,830 | ||||||||||||||||||||||||||||||||||||
| Element |
10 | 1,641 | — | — | — | — | — | — | — | — | 10 | 1,641 | ||||||||||||||||||||||||||||||||||||
| Other |
8 | 2,702 | 1 | 165 | — | — | — | — | — | — | 9 | 2,867 | ||||||||||||||||||||||||||||||||||||
| Vacation Ownership |
12 | 6,617 | — | — | — | — | 1 | 580 | — | — | 13 | 7,197 | ||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
| Total Systemwide |
568 | 180,222 | 162 | 39,282 | 84 | 21,408 | 69 | 15,292 | 220 | 69,400 | 1,103 | 325,604 | ||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
| * | Includes Vacation Ownership properties |
25
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Vacation Ownership Inventory Pipeline
As of March 31, 2012
UNAUDITED
| # Resorts | # of Units (1) | |||||||||||||||||||||||||||
| Brand |
Total (2) | In Operations |
In Active Sales |
Completed (3) | Pre-sales/ Development (4) |
Future Capacity (5),(6) |
Total at Buildout |
|||||||||||||||||||||
| Sheraton |
7 | 7 | 6 | 3,079 | — | 712 | 3,791 | |||||||||||||||||||||
| Westin |
9 | 9 | 9 | 1,562 | 22 | 43 | 1,627 | |||||||||||||||||||||
| St. Regis |
2 | 2 | — | 56 | — | — | 56 | |||||||||||||||||||||
| The Luxury Collection |
1 | 1 | — | 6 | — | — | 6 | |||||||||||||||||||||
| Unbranded |
2 | 2 | 1 | 99 | — | 1 | 100 | |||||||||||||||||||||
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| Total SVO, Inc. |
21 | 21 | 16 | 4,802 | 22 | 756 | 5,580 | |||||||||||||||||||||
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| Unconsolidated Joint Ventures (UJV’s) |
1 | 1 | 1 | 198 | — | — | 198 | |||||||||||||||||||||
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| Total including UJV’s |
22 | 22 | 17 | 5,000 | 22 | 756 | 5,778 | |||||||||||||||||||||
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| Total Intervals Including UJV’s (7) |
260,000 | 1,144 | 39,312 | 300,456 | ||||||||||||||||||||||||
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| (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. |
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