Attached files
| file | filename |
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| 8-K - FORM 8-K - STARWOOD HOTEL & RESORTS WORLDWIDE, INC | d714907d8k.htm |
Exhibit 99.1
| Investor Contact Stephen Pettibone 203-351-3500 |
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Media Contact KC Kavanagh 866-478-2777 |
One StarPoint Stamford, CT 06902 United States | |
STARWOOD REPORTS FIRST QUARTER
2014 RESULTS
STAMFORD, Conn. (April 24, 2014) – 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.”
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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 |
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| Americas: |
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| North America |
7.1 | % | 6.4 | % | ||||
| Latin America |
2.9 | % | 2.9 | % | ||||
| Asia Pacific: |
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| Greater China |
11.9 | % | 13.3 | % | ||||
| Rest of Asia |
5.6 | % | (4.7 | )% | ||||
| Europe, Africa & Middle East: |
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| 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 |
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| 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.
3
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.
4
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.
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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. |
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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% to10%. |
| • | 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).
7
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, |
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| 2014 | 2013 | |||||||
| Income from continuing operations before special items |
$ | 122 | $ | 148 | ||||
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| EPS before special items |
$ | 0.63 | $ | 0.76 | ||||
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| Special Items |
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| Restructuring and other special (charges) credits, net |
— | 1 | ||||||
| Gain (loss) on asset dispositions and impairments, net (a) |
(36 | ) | (9 | ) | ||||
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| Total special items – pre-tax |
(36 | ) | (8 | ) | ||||
| Income tax benefit (expense) for special items (b) |
50 | 3 | ||||||
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| Total special items – after-tax |
14 | (5 | ) | |||||
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| Income from continuing operations |
$ | 136 | $ | 143 | ||||
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| EPS including special items |
$ | 0.71 | $ | 0.73 | ||||
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| 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.
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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.
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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.
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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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| 2014 | 2013 | % Variance |
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| 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 | |||||||||
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| 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 | ) | ||||||||
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| 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 | |||||||
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| Income from continuing operations before taxes and noncontrolling interests | 144 | 206 | (30.1 | ) | ||||||||
| Income tax expense | (8 | ) | (64 | ) | 87.5 | |||||||
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| Income from continuing operations | 136 | 142 | (4.2 | ) | ||||||||
| Discontinued Operations: | ||||||||||||
| Gain on dispositions, net of tax |
1 | 70 | (98.6 | ) | ||||||||
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| Net income | 137 | 212 | (35.4 | ) | ||||||||
| Net loss attributable to noncontrolling interests | — | 1 | (100.0 | ) | ||||||||
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| Net income attributable to Starwood | $ | 137 | $ | 213 | (35.7 | ) | ||||||
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| Earnings Per Share – Basic | ||||||||||||
| Continuing operations | $ | 0.71 | $ | 0.74 | (4.1 | ) | ||||||
| Discontinued operations | 0.01 | 0.37 | (97.3 | ) | ||||||||
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| Net income | $ | 0.72 | $ | 1.11 | (35.1 | ) | ||||||
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| Earnings Per Share – Diluted | ||||||||||||
| Continuing operations | $ | 0.71 | $ | 0.73 | (2.7 | ) | ||||||
| Discontinued operations | 0.01 | 0.36 | (97.2 | ) | ||||||||
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| Net income | $ | 0.72 | $ | 1.09 | (33.9 | ) | ||||||
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| Amounts attributable to Starwood’s Common Stockholders | ||||||||||||
| Continuing operations | $ | 136 | $ | 143 | (4.9 | ) | ||||||
| Discontinued operations | 1 | 70 | (98.6 | ) | ||||||||
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| Net income | $ | 137 | $ | 213 | (35.7 | ) | ||||||
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| Weighted average number of shares | 190 | 191 | ||||||||||
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| Weighted average number of shares assuming dilution | 192 | 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
11
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Consolidated Balance Sheets
(In millions, except share data)
| March 31, 2014 |
December 31, 2013 |
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| (unaudited) | ||||||||
| Assets |
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| Current assets: |
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| 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 |
52 | 54 | ||||||
| Deferred income taxes |
205 | 211 | ||||||
| Prepaid expenses and other |
166 | 121 | ||||||
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| 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 | ||||||
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|||||
| 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. |
12
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. |
13
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 | ) | ||||
|
|
|
|
|
|||||
14
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 | ) | ||||||
|
|
|
|
|
|
|
|||||||
15
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 |
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 |
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 |
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 | ||||
|
|
|
|
|
|||||
16
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 | ||
|
|
|
|||
17
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. |
18
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 |
19
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 |
20
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 |
21
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 $23 million in 2014 and 2013, respectively, resulting from the sales of hotels subject to long-term management contracts and termination fees. |
22
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Vacation Ownership & Residential Revenues and Expenses
For the Three Months Ended March 31,
UNAUDITED ($ 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 $71 million of expenses, respectively, associated with the St. Regis Bal Harbour residential project. |
| (5) | Represents timeshare cost of sales and sales & marketing expenses before deferrals of sales expenses for U.S. GAAP reporting purposes. |
| (6) | Includes resort, general and administrative, and other miscellaneous expenses. |
Note: Deferred revenue is calculated based on the Percentage of Completion ("POC") of the project. Deferred expenses, also based on POC, include product costs and direct sales and marketing costs only. Indirect sales and marketing costs are not deferred per ASC 978-720-25 and ASC 978-340-25.
n/m = not meaningful
23
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Owned Hotels without Comparable Results & Other Selected Items
As of March 31, 2014
UNAUDITED ($ millions)
Owned Hotels without comparable results in 2014 and 2013:
| Hotel |
Location | |
| Aloft Tucson University |
Tucson, AZ | |
| Element Denver Park Meadows |
Denver, CO | |
| Sheraton Steamboat Springs |
Steamboat Springs, CO | |
| The Gritti Palace, Venice |
Venice, Italy | |
| The St. Regis New York |
New York, NY | |
| The Westin Excelsior, Florence |
Florence, Italy | |
| The Westin Maui Resort & Spa, Ka’anapali |
Maui, HI |
Owned Hotels sold in 2014 and 2013:
| Hotel |
Location | |
| Aloft Lexington |
Lexington, MA | |
| Aloft San Francisco Airport |
San Francisco, CA | |
| 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 |
Revenues and Expenses Associated with Hotels Sold in 2014 and 2013: (1)
| Q1 | Q2 | Q3 | Q4 | Full Year | ||||||||||||||||
| Hotels Sold in 2013: |
||||||||||||||||||||
| 2013 |
||||||||||||||||||||
| Revenues |
$ | 19 | $ | 13 | $ | 12 | $ | 4 | $ 48 | |||||||||||
| Expenses (excluding depreciation) |
$ | 14 | $ | 9 | $ | 8 | $ | 3 | $ 34 | |||||||||||
| Hotels Sold in 2014: |
||||||||||||||||||||
| 2014 |
||||||||||||||||||||
| Revenues |
$ | 6 | — | — | — | $ 6 | ||||||||||||||
| Expenses (excluding depreciation) |
$ | 4 | — | — | — | $ 4 | ||||||||||||||
| 2013 |
||||||||||||||||||||
| Revenues |
$ | 21 | $ | 14 | $ | 12 | $ | 17 | $ 64 | |||||||||||
| Expenses (excluding depreciation) |
$ | 14 | $ | 12 | $ | 11 | $ | 13 | $ 50 | |||||||||||
| (1) | Results consist of one hotel sold in 2014 and six hotels sold in 2013. These amounts are included in the revenues and expenses from owned, leased and consolidated joint venture hotels in the statements of income for 2014 and 2013. |
24
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. |
25
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 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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|||||||||||||||||||||||||||||||||||||||||
| 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 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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|||||||||||||||||||||||||||||||||||||||||
| 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 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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|||||||||||||||||||||||||||||||||||||||||
| 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 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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|||||||||||||||||||||||||||||||||||||||||
| 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 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| 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 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| Systemwide |
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| 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 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| 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 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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26
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Vacation Ownership Inventory Pipeline
As of March 31, 2014
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 |
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| 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 | |||||||||||||||||||||
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| Total SVO, Inc. |
21 | 21 | 16 | 4,846 | 70 | 756 | 5,672 | |||||||||||||||||||||
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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 | 5,044 | 70 | 756 | 5,870 | |||||||||||||||||||||
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| 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. |
27