STARWOOD HOTEL & RESORTS WORLDWIDE, INC - FORM 8-K - EX-99.1

Attached files

file	filename
8-K - FORM 8-K - STARWOOD HOTEL & RESORTS WORLDWIDE, INC	d866498d8k.htm
EX-99.2 - EX-99.2 - STARWOOD HOTEL & RESORTS WORLDWIDE, INC	d866498dex992.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 FOURTH QUARTER 2014 RESULTS AND DECLARES FIRST QUARTER DIVIDEND OF $0.375 PER SHARE

STAMFORD, Conn. (February 10, 2015) – Starwood Hotels & Resorts Worldwide, Inc. (NYSE: HOT) today reported fourth quarter 2014 financial results.

Fourth Quarter 2014 Highlights

•

Excluding special items, EPS from continuing operations was $0.97. Including special items, EPS from continuing operations was $1.40.

•

Adjusted EBITDA was $335 million.

•

Excluding special items, income from continuing operations was $171 million. Including special items, income from continuing operations was $245 million.

•

Worldwide Systemwide REVPAR for Same-Store Hotels increased 4.4% in constant dollars (2.3% in actual dollars) compared to 2013. Systemwide REVPAR for Same-Store Hotels in North America increased 5.8% in constant dollars (5.1% in actual dollars).

•

Management fees, franchise fees and other income increased 10.9% compared to 2013. Core fees (total management and franchise fees) increased 3.7% compared to 2013.

•

Earnings from Starwood’s vacation ownership and residential business remained flat compared to 2013, including a $12 million decrease in earnings from the St. Regis Bal Harbour residential project (“Bal Harbour”), which is sold out.

•

During the quarter, the Company signed 63 hotel management and franchise contracts, representing approximately 12,900 rooms, and opened 27 hotels and resorts with approximately 5,800 rooms.

•

During the quarter, the Company paid a regular quarterly dividend of $0.35 per share and a special dividend of $0.65 per share, and repurchased 7.8 million shares at a total cost of $609 million and a weighted average price of $78.12 per share.

•

During the quarter, the Company completed the sale of six wholly-owned hotels and one unconsolidated joint venture hotel for gross cash proceeds of approximately $585 million.

•

On February 10, 2015, the Company announced its plans to spin-off its vacation ownership business to shareholders as a separate publicly traded company.

LOGO

Full Year 2014 Highlights

•

Excluding special items, EPS from continuing operations was $3.02. Including special items, EPS from continuing operations was $3.46.

•

Adjusted EBITDA was $1.238 billion.

•

Excluding special items, income from continuing operations was $561 million. Including special items, income from continuing operations was $643 million.

•

Worldwide Systemwide REVPAR for Same-Store Hotels increased 5.8% in constant dollars (4.9% in actual dollars) compared to 2013. Systemwide REVPAR for Same-Store Hotels in North America increased 7.0% in constant dollars (6.3% in actual dollars).

•

Management fees, franchise fees and other income increased 9.5% compared to 2013. Core fees increased 6.8% compared to 2013.

•

Earnings from Starwood’s vacation ownership and residential business decreased approximately $115 million compared to 2013, including a $108 million decrease in earnings from Bal Harbour.

•

During the year, the Company signed 175 hotel management and franchise contracts, representing approximately 34,700 rooms, and opened 74 hotels and resorts with approximately 15,000 rooms.

•

During the year, the Company returned approximately $2.4 billion to shareholders through dividends and share repurchases.

•

During the year, the Company completed the sale of eight wholly-owned hotels and one unconsolidated joint venture hotel for gross cash proceeds of approximately $817 million.

LOGO

Fourth Quarter 2014 Earnings Summary

Starwood Hotels & Resorts Worldwide, Inc. (“Starwood” or the “Company”) today reported EPS from continuing operations for the fourth quarter of 2014 of $1.40 compared to $0.67 in the fourth quarter of 2013. Excluding special items, EPS from continuing operations was $0.97 for the fourth quarter of 2014 compared to $0.73 in the fourth quarter of 2013.

Special items in the fourth quarter of 2014, which totaled an after-tax benefit of $74 million, primarily related to net gains on the sales of hotels. Special items in the fourth quarter of 2013 totaled an after-tax charge of $13 million. Excluding special items, the effective income tax rate in the fourth quarter of 2014 was 24.5% compared to 33.0% in the fourth quarter of 2013. The decrease is primarily related to the geographical mix of operational results.

Income from continuing operations was $245 million in the fourth quarter of 2014, compared to $128 million in the fourth quarter of 2013. Excluding special items, income from continuing operations was $171 million in the fourth quarter of 2014, compared to $141 million in the fourth quarter of 2013.

Net income was $234 million and $1.33 per share in the fourth quarter of 2014, compared to $128 million and $0.67 per share in the fourth quarter of 2013.

Frits van Paasschen, CEO, said, “We delivered another solid year of performance. Worldwide REVPAR was up nearly 6% in constant dollars, and both Adjusted EBITDA and EPS were ahead of our expectations. We posted another year of rising REVPAR index, a sign of the global strength of our brands and platform. We signed 175 deals for new hotels, our second best signing year in Starwood’s history. Around the world, we opened nearly 15,000 rooms, including our 200th Westin.

“In 2014, we returned $2.4 billion to shareholders through our dividends and stock repurchases. We were able to deliver this amount by reaching our long-term target leverage, with cash flow from operations, and asset sales. During the year, we sold eight hotels for gross proceeds of over $800 million.

“As a further step in our asset-light strategy, we announced today our plans to spin-off our vacation ownership business in 2015. This transaction will create a new pure-play vacation ownership company with a seasoned management team, strong balance sheet, and great prospects for growth.

“Looking ahead to 2015, we expect more strong growth in global lodging. The U.S. economy looks set to continue its growth, and in the U.S. hotel business, limited new supply points to rising rates for some time to come. In Europe, we are optimistic that hotel performance will improve modestly. In other markets around the world, conditions are mixed. However, the underlying secular growth in demand for high-end hotels continues, and we are bullish on the prospects for our business and industry over the long-term.”

LOGO

Year Ended December 31, 2014 Earnings Summary

Income from continuing operations was $643 million for the year ended December 31, 2014 compared to $565 million in 2013. Excluding special items, income from continuing operations was $561 million for the year ended December 31, 2014 compared to $579 million in 2013. Excluding special items, the effective income tax rate for the year ended December 31, 2014 was 30.9% compared to 32.4% in the same period in 2013.

Net income was $633 million and $3.40 per share for the year ended December 31, 2014 compared to $635 million and $3.28 per share for the year ended December 31, 2013.

Adjusted EBITDA was $1.238 billion for the year ended December 31, 2014 compared to $1.263 billion in the same period in 2013.

Fourth Quarter 2014 Operating Results

Management and Franchise Revenues

Worldwide Systemwide REVPAR for Same-Store Hotels increased 4.4% in constant dollars (2.3% in actual dollars) compared to the fourth quarter of 2013. International Systemwide REVPAR for Same-Store Hotels increased 2.7% in constant dollars (decreased 0.8% in actual dollars).

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


	REVPAR
Region	Constant Dollars			Actual Dollars
Americas:
North America		5.8	%		5.1	%
Latin America		2.8	%		2.8	%
Asia Pacific:
Greater China		4.1	%		3.4	%
Rest of Asia		1.2	%		(3.4	)%
Europe, Africa & Middle East:
Europe		4.0	%		(3.3	)%
Africa & Middle East		(0.3	)%		(1.8	)%

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


	REVPAR
Brand	Constant Dollars			Actual Dollars
St. Regis/Luxury Collection		5.2	%		3.0	%
W Hotels		3.7	%		2.5	%
Westin		5.8	%		3.6	%
Sheraton		3.7	%		1.7	%
Le Méridien		0.6	%		(2.5	)%
Four Points by Sheraton		4.1	%		2.1	%
Aloft		8.7	%		8.1	%

LOGO

Worldwide Same-Store Company-Operated gross operating profit margins increased 32 basis points compared to the fourth quarter of 2013. International gross operating profit margins for Same-Store Company-Operated properties increased 63 basis points. North American Same-Store Company-Operated gross operating profit margins decreased 8 basis points.

Management fees, franchise fees and other income were $294 million, up $29 million, or 10.9% compared to the fourth quarter of 2013. Core fees increased 3.7% to $225 million. Other management and franchise revenues increased 53.7% or $22 million, primarily due to fees associated with the termination of certain management and franchise contracts.

For the full year 2014, Worldwide Systemwide REVPAR for Same-Store Hotels increased 5.8% in constant dollars (4.9% in actual dollars) compared to the full year 2013. Worldwide Same-Store Company-Operated gross operating profit margins increased 96 basis points. Management fees, franchise fees and other income were $1.057 billion, up $92 million or 9.5% compared to the full year 2013. Core fees increased 6.8% to $827 million. Other management and franchise revenues increased 23.4%, or $39 million, primarily due to fees associated with the termination of certain management and franchise contracts.

Development

During the fourth quarter of 2014, the Company signed 63 hotel management and franchise contracts, representing approximately 12,900 rooms, of which 52 are new builds and 11 are conversions from other brands. At December 31, 2014, the Company had approximately 480 hotels in the active pipeline representing approximately 108,000 rooms.

During the fourth quarter of 2014, 27 new hotels and resorts (representing approximately 5,800 rooms) entered the system, including Sheraton Wuhan Hankou Hotel (China, 509 rooms), Excelsior Hotel Gallia, a Luxury Collection Hotel, Milan (Italy, 188 rooms),
Le Méridien Suvarnabhumi, Bangkok Golf Resort & Spa (Thailand, 223 rooms), W Bogota (Colombia, 168 rooms), Le Méridien Indianapolis (Indiana, 99 rooms) and Aloft Denver Downtown (Colorado, 140 rooms). During the quarter, 12 properties (representing approximately 3,400 rooms) were removed from the system.

For the full year 2014, the Company signed 175 hotel management and franchise contracts (representing approximately 34,700 rooms). For the full year 2014, 74 new hotels and resorts (representing approximately 15,000 rooms) entered the system and 28 properties (representing approximately 7,000 rooms) left the system.

Owned, Leased and Consolidated Joint Venture Hotels

Worldwide REVPAR at Starwood Same-Store Owned Hotels increased 4.7% in constant dollars (1.2% in actual dollars) when compared to the fourth quarter of 2013. REVPAR at Starwood Same-Store Owned Hotels in North America increased 4.2% in constant dollars (1.9% in actual dollars). Internationally, Starwood Same-Store Owned Hotel REVPAR increased 5.4% in constant dollars (0.3% in actual dollars).

Revenues at Starwood Same-Store Owned Hotels Worldwide increased 3.6% in constant dollars (remained flat in actual dollars) while costs and expenses increased 3.6% in constant dollars (decreased 0.2% in actual dollars) when compared to the fourth quarter of 2013. Margins at these hotels increased 20 basis points.

Revenues at Starwood Same-Store Owned Hotels in North America increased 2.7% in constant dollars (0.4% in actual dollars) while costs and expenses increased 4.8% in constant dollars (2.6% in actual dollars) when compared to the fourth quarter of 2013. Margins at these hotels decreased 170 basis points.

Internationally, revenues at Starwood Same-Store Owned Hotels increased 4.8% in constant dollars (decreased 0.5% in actual dollars) while costs and expenses increased 2.0% in constant dollars (decreased 3.6% in actual dollars) when compared to the fourth quarter of 2013. Margins at these hotels increased 250 basis points.

LOGO

Revenues at owned, leased and consolidated joint venture hotels were $370 million, compared to $416 million in the fourth quarter of 2013. Expenses at owned, leased and consolidated joint venture hotels were $288 million compared to $326 million in the fourth quarter of 2013. Fourth quarter results were impacted by asset sales since the fourth quarter of 2013.

For the full year 2014, Worldwide REVPAR at Starwood Same-Store Owned Hotels increased 6.1% in constant dollars (5.0% in actual dollars) when compared to the full year 2013. Margins at these hotels increased 150 basis points.

Vacation Ownership

Total vacation ownership revenues increased 15.2% to $167 million in the fourth quarter of 2014 when compared to 2013, primarily due to the timing and recognition of deferred revenues. Originated contract sales of vacation ownership intervals decreased 2.4% during the fourth quarter of 2014, compared to the corresponding period in 2013, as the average price per vacation ownership unit sold decreased 3.0% to approximately $14,000, partially offset by a 0.9% increase in the number of contracts signed.

For the full year 2014, total vacation ownership revenues increased 0.8% to $643 million when compared to the full year 2013 as originated contract sales of vacation ownership intervals, number of contracts signed, and the average price per vacation ownership unit sold remained substantially consistent.

On February 10, 2015, the Company announced plans to spin-off its vacation ownership business to shareholders as a separate publicly traded company. The transaction is subject to the receipt of normal and customary regulatory approvals and will not require a shareholder vote. The transaction, which is expected to be tax-free to shareholders, will be effected through a pro rata distribution of the new entity’s stock to existing Starwood shareholders. The Company expects to complete the transaction in the fourth quarter of 2015 but there can be no assurance regarding the ultimate timing of the spin-off or that the spin-off will ultimately occur.

Residential

During the fourth quarter of 2014, the Company’s residential revenues were $3 million compared to $31 million in 2013. The Company realized residential revenues from Bal Harbour of $23 million and earnings of $12 million in the fourth quarter of 2013 compared to no revenue or earnings in the fourth quarter of 2014, as Bal Harbour sold out in early 2014.

Selling, General, Administrative and Other

During the fourth quarter of 2014, selling, general, administrative and other expenses increased 2.8% to $109 million, compared to $106 million in the fourth quarter of 2013. For the full year 2014, selling, general, administrative and other expenses increased 4.7% to $402 million compared to $384 million in the full year 2013.

Capital

Gross capital spending during the quarter included approximately $74 million of maintenance capital and $58 million of development capital.

For the full year 2014, capital spending included $207 million of maintenance capital and $183 million of development capital.

Asset Sales

During the fourth quarter of 2014, the Company completed the sales of six wholly-owned hotels and one unconsolidated joint venture hotel for gross cash proceeds of approximately $585 million. These hotels were sold subject to long-term management or franchise contracts.

LOGO

Dividend

In the fourth quarter of 2014, the Company declared a regular quarterly dividend of $0.35 per share, which was paid on December 29, 2014. In accordance with the Company’s intention to return to shareholders approximately $500 million in cash realized from the completion of the Bal Harbour residential project and sale of the hotel earlier this year, the Company also paid the last of four special dividends of $0.65 per share on December 29, 2014. The total dividends paid in the fourth quarter of 2014 were approximately $173 million. For the full year 2014, the Company paid regular dividends of $1.40 per share and special dividends of $2.60 per share for a total of $4.00 per share, or approximately $733 million in dividends to its shareholders.

On February 9, 2015, the Company’s Board of Directors declared a first quarter cash dividend of $0.375 per share representing an increase of 7.1% over the prior quarterly dividend. The cash dividend will be paid on March 26, 2015 to shareholders of record on March 5, 2015.

Share Repurchase

In the fourth quarter of 2014, the Company repurchased 7.8 million shares at a total cost of approximately $609 million and a weighted average price of $78.12 per share. For the full year 2014, the Company repurchased 20.3 million shares at a total cost of approximately $1.636 billion and a weighted average price of $80.45 per share.

As of December 31, 2014, approximately $79 million remained available under the Company’s share repurchase authorization. On February 9, 2015, the Company’s Board of Directors approved an increase to its share repurchase authorization of $750 million. Following this increase, the Company’s total share repurchase authorization is $754 million.

Balance Sheet

At December 31, 2014, the Company had gross debt of $2.7 billion, cash and cash equivalents of $1.0 billion (including $76 million of restricted cash) and net debt of $1.7 billion, compared to net debt of $1.7 billion as of September 30, 2014, in each case, excluding debt and restricted cash associated with securitized vacation ownership notes receivable. Net debt at December 31, 2014, including $249 million of debt and $11 million of restricted cash associated with securitized vacation ownership notes receivables, was $1.9 billion.

At December 31, 2014, debt was approximately 64% fixed rate and 36% floating rate and its weighted average maturity was 7.2 years with a weighted average interest rate of 3.90%, excluding the securitized debt and capital leases. The Company had cash (including current restricted cash) and availability under the revolving credit facilities of approximately $2.12 billion. Subsequent to the end of the year, the Company repaid approximately $400 million of its commercial paper borrowings using cash on hand at December 31, 2014.

LOGO

Outlook

The following outlook assumes the planned spin-off of the vacation ownership business occurs on December 31, 2015. Transaction costs related to the planned spin-off are not included in full year selling, general and administrative expense guidance.

For the full year 2015:

•

Adjusted EBITDA is expected to be approximately $1.175 billion to $1.200 billion (based on the assumptions below).

•

REVPAR increases at Same-Store Systemwide Hotels Worldwide of 5% to 7% in constant dollars (approximately 300 basis points lower in actual dollars at current exchange rates).¹

•

REVPAR increases at Same-Store Owned Hotels Worldwide of 2% to 4% in constant dollars (approximately 550 basis points lower in actual dollars at current exchange rates).

•

Margins at Same-Store Owned Hotels Worldwide increase 25 to 75 basis points.

•

Core management and franchise fees increase approximately 5% to 7%.

•

Management fees, franchise fees and other income increase approximately 2% to 4%.

•

Earnings from the Company’s vacation ownership and residential business of approximately $140 million to $150 million.

•

Selling, general and administrative expenses increase approximately 2% to 4%.

•

Full year owned earnings are negatively impacted by approximately $42 million due to asset sales completed in 2014.

•

Shifts in exchange rates since 2014 will negatively impact full year earnings by approximately $35 million if exchange rates stay at current levels.

•

Significant non-recurring items in 2014 Adjusted EBITDA include $35 million related to five large one-time termination fees received by the Company and $11 million from the Bal Harbour residential project, which is sold out.

•

Depreciation and amortization is expected to be approximately $315 million.

•

Interest expense is expected to be approximately $135 million.

•

Full year effective tax rate is expected to be approximately 32%, and cash taxes from operating earnings are expected to be approximately $110 million.

•

EPS before special items is expected to be approximately $2.87 to $2.97 (based on the assumptions above).

•

Cash flow from operations is expected to be approximately $700 million to $800 million (based on the assumptions above). Cash flow from operations includes vacation ownership investment in inventory expected to be approximately $160 million which includes approximately $80 million related to the development of the third phase of the Westin Ka’anapali Ocean Resort Villas.

•

Full year capital expenditures (excluding vacation ownership 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.

1	Previously, the Company provided an outlook for REVPAR increases at Same-Store Company-Operated Hotels Worldwide. The current outlook for REVPAR increases at Same-Store Systemwide Hotels Worldwide includes Company-Operated and franchised hotels.

LOGO

For the three months ended March 31, 2015:

•

Adjusted EBITDA is expected to be approximately $250 million to $260 million (based on the assumptions below).

•

REVPAR increases at Same-Store Systemwide Hotels Worldwide of 4% to 6% in constant dollars (approximately 300 basis points lower in actual dollars at current exchange rates).

•

REVPAR increases at Same-Store Company Owned Hotels Worldwide of 3% to 5% in constant dollars (approximately 525 basis points lower in actual dollars at current exchange rates).

•

Core management and franchise fees increase approximately 3% to 5%.

•

Management fees, franchise fees and other income are expected to be approximately flat due to a large termination fee received in the first quarter of 2014.

•

Earnings from the Company’s vacation ownership and residential business of approximately $35 million to $40 million.

•

EPS is expected to be approximately $0.53 to $0.57 (based on the assumptions above).

LOGO

Special Items

The Company’s special items netted to a pre-tax benefit of $23 million ($74 million after-tax) in the fourth quarter of 2014 compared to a pre-tax charge of $42 million ($13 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 December 31,						Year Ended December 31,
2014		2013				2014			2013
$	171	$	141		Income from continuing operations before special items	$	561		$	579

$	0.97	$	0.73		EPS before special items	$	3.02		$	2.99

					Special Items
	1		(24	)	Restructuring and other special (charges) credits, net ^(a)		4			(1	)
	22		(18	)	Gain (loss) on asset dispositions and impairments, net ^(b)		(33	)		(23	)
	—		—		Impairment of unconsolidated joint venture hotel ^(c)		—			(4	)
	—		—		Loss on early extinguishment of debt, net ^(d)		(1	)		—

	23		(42	)	Total special items – pre-tax		(30	)		(28	)
	36		21		Income tax benefit (expense) for special items ^(e)		44			14
	15		8		Income tax benefit (expense) – other non-recurring items ^(f)		68			—

	74		(13	)	Total special items – after-tax		82			(14	)

$	245	$	128		Income from continuing operations	$	643		$	565

$	1.40	$	0.67		EPS including special items	$	3.46		$	2.92

(a)	During the year ended December 31, 2014, the net credit primarily relates to the reversal of a reserve associated with a note receivable from a previous disposition.

During the three months ended December 2013, the Company decided to absorb certain technology related costs and expenses that it previously intended to collect from its managed and franchised properties. As a result, the Company recorded a $19 million charge, representing the costs and expenses incurred through the end of 2013 that are no longer intended to be recovered. The three months ended December 31, 2013 also include approximately $5 million in severance costs related to a hotel the Company exited in 2014. The year ended December 31, 2013 includes a favorable adjustment to a legal reserve of approximately $22 million.

(b)

During the three months ended December 31, 2014, the net gain relates to a $31 million gain on the acceleration of deferred gains primarily related to hotels that were converted from management to franchise contracts, and a $10 million gain on the sale of our interest in an unconsolidated joint venture hotel, partially offset by a loss of $17 million from the sale of four wholly-owned hotels. The year ended December 31, 2014 also includes a net loss of $39 million from the impairment of three hotels, two of which were sold subject to long-term franchise contracts and the other of which represents a leased hotel that was converted to a managed hotel, an impairment charge of $7 million associated with a foreign unconsolidated joint venture, and a $9 million charge related to the termination of a leasehold interest in a hotel which is now franchised.

During the three months ended December 31, 2013, the net loss primarily related to a $17 million impairment charge associated with a wholly-owned hotel, asset disposals at certain owned hotels partially offset by the gain on the sales of two hotels and insurance proceeds relating to an owned hotel that suffered damages as a result of a cyclone. The year ended December 31, 2013 includes losses related to the sale of three wholly-owned hotels.

(c)	During the year ended December 31, 2013, the net loss related to an impairment charge associated with a hotel in which the Company owns a non-controlling interest.

(d)	During the year ended December 31, 2014, the net charge relates to the write-off of certain deferred financing costs associated with amending the Company’s Revolving Credit Facility.

(e)	During the three months ended December 31, 2014, the benefit primarily relates to the recognition of tax benefits that were realized in connection with the dispositions of wholly-owned hotels. The year ended December 31, 2014 also includes tax benefits on hotels sold in prior quarters.

During the three months ended December 31, 2013, the benefit primarily related to tax benefits on the special items at the statutory tax rate. The year ended December 31, 2013 also includes tax benefits primarily relating to the sale of three hotels with high tax bases.

(f)

During the three months ended December 31, 2014, the benefit primarily relates to the tax, net of foreign tax credits, on a portion of foreign earnings no longer considered permanently invested. The year ended December 31, 2014 also includes the recognition of a $49 million benefit for the settlement of a foreign tax audit.

During the three months and year ended December 31, 2013, the net benefit primarily represents tax benefits associated with the tax law change in Mexico in late 2013 and the reversal of tax reserves associated with tax assets which are now deemed realizable.

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.

LOGO

Starwood will be conducting a conference call to discuss the fourth quarter financial results at 10:30 a.m. Eastern Standard 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 Tuesday, February 10 and will run for one year. Alternatively, participants may dial into the live call at (866) 921-0636 with conference ID 67514695. Outside the U.S., participants may dial into the live call at (706) 758-8764. 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 Tuesday, February 10 and will run for one week; the call replay can be accessed by dialing (855) 859-2056 with conference ID 67514695. Outside the U.S., the call replay can be accessed at (404) 537-3406.

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 non-controlling 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 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 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 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.

LOGO

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 services represent the mathematical difference between revenues and expenses from vacation ownership and residential as shown on the Company’s statement of operations. 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 more than 1,200 properties in 100 countries and 180,400 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.

LOGO

STARWOOD HOTELS & RESORTS WORLDWIDE, INC.

Unaudited Consolidated Statements of Income

(In millions, except per share data)


Three Months Ended December 31,										Year Ended December 31,
2014			2013			% Variance				2014			2013			% Variance
									Revenues
$	370		$	416			(11.1	)	Owned, leased and consolidated joint venture hotels	$	1,541		$	1,612			(4.4	)
	170			176			(3.4	)	Vacation ownership and residential sales and services		674			924			(27.1	)
	294			265			10.9		Management fees, franchise fees and other income		1,057			965			9.5
	659			649			1.5		Other revenues from managed and franchised properties ^(a)		2,711			2,614			3.7

	1,493			1,506			(0.9	)			5,983			6,115			(2.2	)
									Costs and Expenses
	288			326			11.7		Owned, leased and consolidated joint venture hotels		1,211			1,292			6.3
	123			129			4.7		Vacation ownership and residential		497			632			21.4
	109			106			(2.8	)	Selling, general, administrative and other		402			384			(4.7	)
	(1	)		24			n/m		Restructuring and other special charges (credits), net		(4	)		1			n/m
	66			65			(1.5	)	Depreciation		254			239			(6.3	)
	7			7			—		Amortization		29			28			(3.6	)
	659			649			(1.5	)	Other expenses from managed and franchised properties ^(a)		2,711			2,614			(3.7	)

	1,251			1,306			4.2				5,100			5,190			1.7
	242			200			21.0		Operating income		883			925			(4.5	)
	6			9			(33.3	)	Equity (losses) earnings and gains and (losses) from unconsolidated ventures, net		27			26			3.8
	(21	)		(23	)		8.7		Interest expense, net of interest income of $1, $1, $3 and $3		(94	)		(100	)		6.0
	—			—			—		Loss on early extinguishment of debt		(1	)		—			n/m
	22			(18	)		n/m		Gain (loss) on asset dispositions and impairments, net		(33	)		(23	)		(43.5	)

	249			168			48.2		Income from continuing operations before taxes and noncontrolling interests		782			828			(5.6	)
	(4	)		(40	)		90.0		Income tax benefit (expense)		(139	)		(263	)		47.1

	245			128			91.4		Income (loss) from continuing operations		643			565			13.8
									Discontinued Operations:
	—			(1	)		100.0		Loss from operations, net of tax		—			(1	)		(100.0	)
	(11	)		1			n/m		Gain (loss) on dispositions, net of tax		(10	)		71			n/m

$	234		$	128			82.8		Net income (loss) attributable to Starwood	$	633		$	635			(0.3	)

									Earnings (Losses) Per Share – Basic
$	1.41		$	0.68			n/m		Continuing operations	$	3.49		$	2.96			17.9
	(0.07	)		—			n/m		Discontinued operations		(0.06	)		0.37			n/m

$	1.34		$	0.68			97.1		Net income (loss)	$	3.43		$	3.33			3.0

									Earnings (Losses) Per Share – Diluted
$	1.40		$	0.67			n/m		Continuing operations	$	3.46		$	2.92			18.5
	(0.07	)		—			n/m		Discontinued operations		(0.06	)		0.36			n/m

$	1.33		$	0.67			98.5		Net income (loss)	$	3.40		$	3.28			3.7

	174			189					Weighted average number of shares		185			191

	176			192					Weighted average number of shares assuming dilution		186			193

(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

LOGO

STARWOOD HOTELS & RESORTS WORLDWIDE, INC.

Consolidated Balance Sheets

(In millions, except share data)


	December 31, 2014			December 31, 2013
Assets
Current assets:
Cash and cash equivalents	$	935		$	616
Restricted cash		84			134
Accounts receivable, net of allowance for doubtful accounts of $63 and $59		661			643
Inventories		236			217
Securitized vacation ownership notes receivable, net of allowance for doubtful accounts of $4 and $6		47			54
Deferred income tax		199			211
Prepaid expenses and other		159			121

Total current assets		2,321			1,996
Investments		214			251
Plant, property and equipment, net		2,634			3,034
Goodwill and intangible assets, net		1,956			2,032
Deferred tax assets		596			591
Other assets ^(a)		711			543
Securitized vacation ownership notes receivable		227			315

Total assets	$	8,659		$	8,762

Liabilities and Stockholders’ Equity
Current liabilities:
Short-term borrowings and current maturities of long-term debt ^(b)	$	297		$	2
Accounts payable		101			105
Current maturities of long-term securitized vacation ownership debt		73			97
Accrued expenses		1,307			1,092
Accrued salaries, wages and benefits		416			404
Accrued taxes and other		256			224

Total current liabilities		2,450			1,924
Long-term debt^(b)		2,398			1,265
Long-term securitized vacation ownership debt		176			258
Deferred income taxes		38			48
Other liabilities		2,069			1,904

Total liabilities		7,131			5,399

Commitments and contingencies
Stockholders’ equity:
Common stock; $0.01 par value; authorized 1,000,000,000 shares; outstanding 172,694,299 and 191,897,809 shares at December 31, 2014 and December 31, 2013, respectively		2			2
Additional paid-in capital		47			661
Accumulated other comprehensive loss		(508	)		(335	)
Retained earnings		1,984			3,032

Total Starwood stockholders’ equity		1,525			3,360
Noncontrolling interest		3			3

Total stockholders’ equity		1,528			3,363

Total liabilities and stockholders’ equity	$	8,659		$	8,762

(a)	Includes restricted cash of $3 million and $3 million at December 31, 2014 and December 31, 2013, respectively.

(b)	Excludes Starwood’s share of unconsolidated joint venture debt aggregating approximately $200 million and $218 million at December 31, 2014 and December 31, 2013, respectively.

LOGO

STARWOOD HOTELS & RESORTS WORLDWIDE, INC.

Non-GAAP to GAAP Reconciliations – Historical Data

(In millions)


Three Months Ended December 31,										Year Ended December 31,
2014			2013			% Variance				2014			2013			% Variance
									Reconciliation of Net Income to EBITDA and Adjusted EBITDA
$	234		$	128			82.8		Net income	$	633		$	635			(0.3	)
	28			27			3.7		Interest expense ^(a)		114			115			(0.9	)
	—			—			—		Loss on early extinguishment of debt, net		1			—			n/m
	—			41			(100.0	)	Income tax (benefit) expense ^(b)		134			194			(30.9	)
	73			71			2.8		Depreciation ^(c)		280			262			6.9
	8			7			14.3		Amortization ^(d)		32			31			3.2

	343			274			25.2		EBITDA		1,194			1,237			(3.5	)
	(22	)		18			n/m		(Gain) loss on asset dispositions and impairments, net		33			23			43.5
	(1	)		24			n/m		Restructuring and other special charges (credits), net		(4	)		1			n/m
	—			—			—		Impairment of unconsolidated joint venture hotel ^(e)		—			4			(100.0	)
	15			(2	)		n/m		Discontinued operations (gain) loss on dispositions ^(f)		15			(2	)		n/m

$	335		$	314			6.7		Adjusted EBITDA	$	1,238		$	1,263			(2.0	)

(a)	Includes $6 million and $3 million of Starwood’s share of interest expense of unconsolidated joint ventures for the three months ended December 31, 2014 and 2013, respectively, and $17 million and $12 million for the year ended December 31, 2014 and 2013, respectively.

(b)	Includes $(4) million and $1 million of tax expense (benefit) recorded in discontinued operations for the three months ended December 31, 2014 and 2013, respectively, and $(5) million and $(69) million for the year ended December 31, 2014 and 2013, respectively.

(c)	Includes $7 million and $6 million of Starwood’s share of depreciation expense of unconsolidated joint ventures for the three months ended December 31, 2014 and 2013, respectively, and $26 million and $23 million for the year ended December 31, 2014 and 2013, respectively.

(d)	Includes $1 million and $0 million of Starwood’s share of amortization expense of unconsolidated joint ventures for the three months ended December 31, 2014 and 2013, respectively, and $3 million and $3 million for the year ended December 31, 2014 and 2013, respectively.

(e)	The impairment charge is included in the equity earnings and gain/(loss) from unconsolidated ventures, net line item in the statement of income.

(f)	Excludes the amount of income tax expense (benefit) included within (b) above.

LOGO

STARWOOD HOTELS & RESORTS WORLDWIDE, INC.

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

(In millions)


	Three Months Ended December 31, 2014
	$ Change			% Variance
Revenue
Revenue increase/(decrease) (GAAP)	$	—			—
Impact of changes in foreign exchange rates		11			3.6	%

Revenue increase/(decrease) in constant dollars	$	11			3.6	%


Expense
Expense increase/(decrease) (GAAP)	$	(1	)		(0.2	)%
Impact of changes in foreign exchange rates		9			3.8	%

Expense increase/(decrease) in constant dollars	$	8			3.6	%

Non-GAAP to GAAP Reconciliations – Same-Store Owned/Leased Hotels North America

(In millions)


	Three Months Ended December 31, 2014
	$ Change		% Variance
Revenue
Revenue increase/(decrease) (GAAP)	$	1		0.4	%
Impact of changes in foreign exchange rates		4		2.3	%

Revenue increase/(decrease) in constant dollars	$	5		2.7	%


Expense
Expense increase/(decrease) (GAAP)	$	3		2.6	%
Impact of changes in foreign exchange rates		3		2.2	%

Expense increase/(decrease) in constant dollars	$	6		4.8	%

Non-GAAP to GAAP Reconciliations – Same-Store Owned/Leased Hotels International

(In millions)


	Three Months Ended December 31, 2014
	$ Change			% Variance
Revenue
Revenue increase/(decrease) (GAAP)	$	(1	)		(0.5	)%
Impact of changes in foreign exchange rates		7			5.3	%

Revenue increase/(decrease) in constant dollars	$	6			4.8	%


Expense
Expense increase/(decrease) (GAAP)	$	(4	)		(3.6	)%
Impact of changes in foreign exchange rates		6			5.6	%

Expense increase/(decrease) in constant dollars	$	2			2.0	%

LOGO

STARWOOD HOTELS & RESORTS WORLDWIDE, INC.

Non-GAAP to GAAP Reconciliations – Future Performance

(In millions, except per share data)

Low Case


Three Months Ended March 31, 2015			Year Ended December 31, 2015
$	92	Net income	$	493
	35	Interest expense		135
	43	Income tax expense		232
	80	Depreciation and amortization		315

	250	EBITDA		1,175
	—	(Gain) loss on asset dispositions and impairments, net		—
	—	Discontinued operations (gain) loss on dispositions		—

$	250	Adjusted EBITDA	$	1,175


Three Months Ended March 31, 2015			Year Ended December 31, 2015
$	92	Income from continuing operations before special items	$	493

$	0.53	EPS before special items	$	2.87

		Special Items
	—	Gain (loss) on asset dispositions and impairments, net		—

	—	Total special items – pre-tax		—
	—	Income tax benefit associated with special items		—

	—	Total special items – after-tax		—

$	92	Income from continuing operations	$	493

$	0.53	EPS including special items	$	2.87


		High Case

Three Months Ended March 31, 2015			Year Ended December 31, 2015
$	99	Net income	$	510
	35	Interest expense		135
	46	Income tax expense		240
	80	Depreciation and amortization		315

	260	EBITDA		1,200
	—	(Gain) loss on asset dispositions and impairments, net		—
	—	Discontinued operations (gain) loss on dispositions		—

$	260	Adjusted EBITDA	$	1,200


Three Months Ended March 31, 2015			Year Ended December 31, 2015
$	99	Income from continuing operations before special items	$	510

$	0.57	EPS before special items	$	2.97

		Special Items
	—	Gain (loss) on asset dispositions and impairments, net		—

	—	Total special items – pre-tax		—
	—	Income tax benefit associated with special items		—

	—	Total special items – after-tax		—

$	99	Income from continuing operations	$	510

$	0.57	EPS including special items	$	2.97

LOGO

STARWOOD HOTELS & RESORTS WORLDWIDE, INC.

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

(In millions)


Three Months Ended December 31,									Year Ended December 31,
2014		2013			% Variance			Same-Store Owned Hotels Worldwide	2014		2013		% Variance
								Revenue
$	298	$	298			—		Same-Store Owned Hotels ^(a)	$	1,044	$	1,008		3.5
	20		74			(73.0	)	Hotels Sold in 2014 and 2013		151		305		(50.5	)
	45		37			21.6		Hotels Without Comparable Results		320		272		17.6
	7		7			—		Other ancillary hotel operations		26		27		(3.7	)

$	370	$	416			(11.1	)	Total Owned, Leased and Consolidated Joint Venture Hotel Revenue	$	1,541	$	1,612		(4.4	)

								Costs and Expenses
$	236	$	237			0.2		Same-Store Owned Hotels ^(a)	$	830	$	816		(1.7	)
	12		53			77.4		Hotels Sold in 2014 and 2013		108		226		52.2
	33		30			(10.0	)	Hotels Without Comparable Results		248		226		(9.7	)
	7		6			(16.7	)	Other ancillary hotel operations		25		24		(4.2	)

$	288	$	326			11.7		Total Owned, Leased and Consolidated Joint Venture Hotels Costs and Expenses	$	1,211	$	1,292		6.3


Three Months Ended December 31,									Year Ended December 31,
2014		2013			% Variance			Same-Store Owned Hotels North America	2014		2013		% Variance
								Revenue
$	168	$	167			0.4		Same-Store Owned Hotels ^(a)	$	531	$	520		2.1
	4		27			(85.2	)	Hotels Sold in 2014 and 2013		28		135		(79.3	)
	26		18			44.4		Hotels Without Comparable Results		217		174		24.7
	—		—			—		Other ancillary hotel operations		—		—		—

$	198	$	212			(6.6	)	Total Owned, Leased and Consolidated Joint Venture Hotels Revenue	$	776	$	829		(6.4	)

								Costs and Expenses
$	134	$	131			(2.6	)	Same-Store Owned Hotels ^(a)	$	429	$	422		(1.6	)
	3		21			85.7		Hotels Sold in 2014 and 2013		23		107		78.5
	21		18			(16.7	)	Hotels Without Comparable Results		178		161		(10.6	)
	—		(1	)		100.0		Other ancillary hotel operations		—		—		—

$	158	$	169			6.5		Total Owned, Leased and Consolidated Joint Venture Hotels Costs and Expenses	$	630	$	690		8.7


Three Months Ended December 31,									Year Ended December 31,
2014		2013			% Variance			Same-Store Owned Hotels International	2014		2013		% Variance
								Revenue
$	130	$	131			(0.5	)	Same-Store Owned Hotels ^(a)	$	513	$	488		5.0
	16		47			(66.0	)	Hotels Sold in 2014 and 2013		123		170		(27.6	)
	19		19			—		Hotels Without Comparable Results		103		98		5.1
	7		7			—		Other ancillary hotel operations		26		27		(3.7	)

$	172	$	204			(15.7	)	Total Owned, Leased and Consolidated Joint Venture Hotels Revenue	$	765	$	783		(2.3	)

								Costs and Expenses
$	102	$	106			3.6		Same-Store Owned Hotels ^(a)	$	401	$	394		(1.7	)
	9		32			71.9		Hotels Sold or 2014 and 2013		85		119		28.6
	12		12			—		Hotels Without Comparable Results		70		65		(7.7	)
	7		7			—		Other ancillary hotel operations		25		24		(4.2	)

$	130	$	157			17.2		Total Owned, Leased and Consolidated Joint Venture Hotels Costs and Expenses	$	581	$	602		3.5

(a)

Same-Store Owned Hotel results exclude 11 hotels sold or closed, two leased hotels converted to managed or franchised hotels and six hotels without comparable results for the three months ended December 31, 2014 and 15 hotels sold, two leased hotels converted to managed or franchised hotels, and eight hotels without comparable results for the year ended December 31, 2014.

n/m = not meaningful

STARWOOD HOTELS & RESORTS WORLDWIDE, INC.

Systemwide⁽¹⁾ Statistics—Same Store

For the Three Months Ended December 31,

UNAUDITED


	Systemwide—Worldwide									Systemwide—North America									Systemwide—International
	2014			2013			Var. USD			2014			2013			Var. USD			2014			2013			Var. USD
TOTAL HOTELS
REVPAR ($)		119.51			116.79			2.3	%		123.73			117.77			5.1	%		114.70			115.67			-0.8	%
ADR ($)		175.45			175.84			-0.2	%		177.02			172.47			2.6	%		173.55			179.93			-3.5	%
Occupancy (%)		68.1	%		66.4	%		1.7			69.9	%		68.3	%		1.6			66.1	%		64.3	%		1.8

SHERATON
REVPAR ($)		101.02			99.31			1.7	%		102.74			98.45			4.4	%		99.13			100.26			-1.1	%
ADR ($)		151.37			152.40			-0.7	%		151.47			148.58			1.9	%		151.26			156.75			-3.5	%
Occupancy (%)		66.7	%		65.2	%		1.5			67.8	%		66.3	%		1.5			65.5	%		64.0	%		1.5

WESTIN
REVPAR ($)		132.67			128.08			3.6	%		130.46			123.11			6.0	%		137.18			138.24			-0.8	%
ADR ($)		187.06			185.08			1.1	%		184.45			178.07			3.6	%		192.33			199.37			-3.5	%
Occupancy (%)		70.9	%		69.2	%		1.7			70.7	%		69.1	%		1.6			71.3	%		69.3	%		2.0

ST. REGIS/LUXURY COLLECTION
REVPAR ($)		209.01			202.94			3.0	%		282.73			267.93			5.5	%		179.35			176.58			1.6	%
ADR ($)		314.18			316.65			-0.8	%		396.76			378.64			4.8	%		277.54			287.66			-3.5	%
Occupancy (%)		66.5	%		64.1	%		2.4			71.3	%		70.8	%		0.5			64.6	%		61.4	%		3.2

LE MERIDIEN
REVPAR ($)		125.20			128.37			-2.5	%		216.21			207.56			4.2	%		109.12			114.34			-4.6	%
ADR ($)		188.49			193.62			-2.6	%		265.62			258.48			2.8	%		171.09			179.16			-4.5	%
Occupancy (%)		66.4	%		66.3	%		0.1			81.4	%		80.3	%		1.1			63.8	%		63.8	%		0.0

W
REVPAR ($)		237.71			231.84			2.5	%		235.07			227.38			3.4	%		243.33			241.39			0.8	%
ADR ($)		305.68			303.33			0.8	%		304.37			295.36			3.1	%		308.41			320.78			-3.9	%
Occupancy (%)		77.8	%		76.4	%		1.4			77.2	%		77.0	%		0.2			78.9	%		75.2	%		3.7

FOUR POINTS
REVPAR ($)		72.30			70.82			2.1	%		76.64			73.24			4.6	%		66.70			67.69			-1.5	%
ADR ($)		111.20			112.54			-1.2	%		114.18			112.73			1.3	%		107.05			112.29			-4.7	%
Occupancy (%)		65.0	%		62.9	%		2.1			67.1	%		65.0	%		2.1			62.3	%		60.3	%		2.0

ALOFT
REVPAR ($)		79.35			73.43			8.1	%		93.46			85.65			9.1	%		53.13			50.20			5.8	%
ADR ($)		115.19			111.46			3.3	%		128.34			121.24			5.9	%		86.31			88.35			-2.3	%
Occupancy (%)		68.9	%		65.9	%		3.0			72.8	%		70.6	%		2.2			61.6	%		56.8	%		4.8

(1)	Includes same-store Owned, managed and franchised hotels

STARWOOD HOTELS & RESORTS WORLDWIDE, INC.

Worldwide Hotel Results—Same Store

For the Three Months Ended December 31,

UNAUDITED


	Systemwide⁽¹⁾									Company Operated ⁽²⁾
	2014			2013			Var. USD			2014			2013			Var. USD
TOTAL WORLDWIDE
REVPAR ($)		119.51			116.79			2.3	%		136.55			134.94			1.2	%
ADR ($)		175.45			175.84			-0.2	%		198.55			200.51			-1.0	%
Occupancy (%)		68.1	%		66.4	%		1.7			68.8	%		67.3	%		1.5

AMERICAS
REVPAR ($)		121.52			115.84			4.9	%		158.75			153.17			3.6	%
ADR ($)		175.71			171.57			2.4	%		222.76			217.88			2.2	%
Occupancy (%)		69.2	%		67.5	%		1.7			71.3	%		70.3	%		1.0

North America
REVPAR ($)		123.73			117.77			5.1	%		163.98			158.34			3.6	%
ADR ($)		177.02			172.47			2.6	%		227.65			222.40			2.4	%
Occupancy (%)		69.9	%		68.3	%		1.6			72.0	%		71.2	%		0.8

Latin America
REVPAR ($)		96.01			93.40			2.8	%		115.34			110.35			4.5	%
ADR ($)		158.22			159.40			-0.7	%		177.77			175.41			1.3	%
Occupancy (%)		60.7	%		58.6	%		2.1			64.9	%		62.9	%		2.0

ASIA PACIFIC
REVPAR ($)		105.69			105.46			0.2	%		107.40			106.52			0.8	%
ADR ($)		156.80			161.16			-2.7	%		159.04			162.84			-2.3	%
Occupancy (%)		67.4	%		65.4	%		2.0			67.5	%		65.4	%		2.1

Greater China
REVPAR ($)		99.66			96.36			3.4	%		98.57			95.16			3.6	%
ADR ($)		154.32			156.96			-1.7	%		152.72			155.36			-1.7	%
Occupancy (%)		64.6	%		61.4	%		3.2			64.5	%		61.2	%		3.3

Rest of Asia Pacific
REVPAR ($)		114.02			118.09			-3.4	%		126.33			131.00			-3.6	%
ADR ($)		159.90			166.20			-3.8	%		170.88			176.12			-3.0	%
Occupancy (%)		71.3	%		71.1	%		0.2			73.9	%		74.4	%		-0.5

EAME
REVPAR ($)		132.83			136.61			-2.8	%		140.89			144.98			-2.8	%
ADR ($)		202.39			213.01			-5.0	%		212.23			223.25			-4.9	%
Occupancy (%)		65.6	%		64.1	%		1.5			66.4	%		64.9	%		1.5

Europe
REVPAR ($)		133.28			137.77			-3.3	%		146.92			152.18			-3.5	%
ADR ($)		197.57			210.23			-6.0	%		211.72			225.44			-6.1	%
Occupancy (%)		67.5	%		65.5	%		2.0			69.4	%		67.5	%		1.9

Africa & Middle East
REVPAR ($)		132.02			134.48			-1.8	%		132.58			135.12			-1.9	%
ADR ($)		211.91			218.39			-3.0	%		213.02			219.96			-3.2	%
Occupancy (%)		62.3	%		61.6	%		0.7			62.2	%		61.4	%		0.8

(1)	Includes same-store Owned, managed and franchised hotels

(2)	Includes same-store Owned and managed hotels

STARWOOD HOTELS & RESORTS WORLDWIDE, INC.

Owned Hotel Results—Same Store

For the Three Months Ended December 31,

UNAUDITED


	Worldwide									North America									International
	2014			2013			Var. USD			2014			2013			Var. USD			2014			2013			Var. USD
TOTAL HOTELS	30 Hotels									10 Hotels									20 Hotels
REVPAR ($)		180.12			178.00			1.2	%		189.41			185.80			1.9	%		169.65			169.20			0.3	%
ADR ($)		243.21			251.35			-3.2	%		253.18			257.42			-1.6	%		231.73			244.21			-5.1	%
Occupancy (%)		74.1	%		70.8	%		3.3			74.8	%		72.2	%		2.6			73.2	%		69.3	%		3.9

Total Revenue*		298,015			297,928			0.0	%		167,939			167,239			0.4	%		130,076			130,689			-0.5	%
Total Expenses*		236,417			236,813			0.2	%		133,942			130,546			-2.6	%		102,475			106,267			3.6	%

*	Revenues and Expenses above are represented in ‘000s

STARWOOD HOTELS & RESORTS WORLDWIDE, INC.

Management Fees, Franchise Fees and Other Income

For the Three Months Ended December 31,

UNAUDITED ($ millions)


	Worldwide
	2014		2013		Variance			% Variance
Management Fees
Base Fees		96		94		2			2.1	%
Incentive Fees		71		69		2			2.9	%

Total Management Fees		167		163		4			2.5	%

Franchise Fees		58		54		4			7.4	%

Total Management and Franchise Fees (Core fees)		225		217		8			3.7	%

Other Management and Franchise Revenues⁽¹⁾		63		41		22			53.7	%

Total Management and Franchise Revenues		288		258		30			11.6	%


Other		6		7		(1	)		(14.3	)%

Management Fees, Franchise Fees and Other Income		294		265		29			10.9	%

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

STARWOOD HOTELS & RESORTS WORLDWIDE, INC.

Vacation Ownership & Residential Revenues and Expenses

For the Three Months Ended December 31,

UNAUDITED ($ millions)


	2014			2013			$ Variance			% Variance
Originated Sales Revenues⁽¹⁾—Vacation Ownership Sales		80			82			(2	)		(2.4	%)
Other Sales and Services Revenues ⁽²⁾		81			76			5			6.6	%
Deferred Revenues—Percentage of Completion		12			(8	)		20			n/m
Deferred Revenues—Other ⁽³⁾		(6	)		(5	)		(1	)		(20.0	%)

Vacation Ownership Sales and Services Revenues		167			145			22			15.2	%
Residential Sales and Services Revenues ⁽⁴⁾		3			31			(28	)		(90.3	%)

Total Vacation Ownership & Residential Sales and Services Revenues		170			176			(6	)		(3.4	%)


Originated Sales Expenses⁽⁵⁾—Vacation Ownership Sales		53			60			7			11.7	%
Other Expenses ⁽⁶⁾		62			59			(3	)		(5.1	%)
Deferred Expenses—Percentage of Completion		7			(4	)		(11	)		n/m
Deferred Expenses—Other		1			1			0			0.0	%

Vacation Ownership Expenses		123			116			(7	)		(6.0	%)
Residential Expenses ⁽⁴⁾		0			13			13			100.0	%

Total Vacation Ownership & Residential Expenses		123			129			6			4.7	%

(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 2014 and 2013, includes $0 and $23 million of revenues and $0 and $11 million expenses associated with the St. Regis Bal Harbour residential project, respectively.

(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

STARWOOD HOTELS & RESORTS WORLDWIDE, INC.

Total Earnings by Geographic Area – Owned

For the Year Ended December 31, 2014

UNAUDITED


Worldwide Markets	% of 2014 Total Earnings (1)
United States		30	%
Americas (Latin America & Canada)*		33	%
Asia Pacific		13	%
Europe		24	%

Total Worldwide		100	%

*	Includes U.S. territories

(1)	Represents earnings for owned, leased, and consolidated joint venture hotels before depreciation expense.

STARWOOD HOTELS & RESORTS WORLDWIDE, INC.

Total Management and Franchise Fees by Geographic Area

For the Year Ended December 31, 2014

UNAUDITED


Geographical Area	Management Fees			Franchise Fees			Total Management and Franchise Fees
United States		35	%		72	%		46	%
Americas (Latin America & Canada)*		6	%		14	%		9	%
China		19	%		2	%		14	%
Rest of Asia		13	%		5	%		11	%
Europe		14	%		7	%		11	%
Middle East and Africa		13	%		0	%		9	%

Total Worldwide		100	%		100	%		100	%

*	Includes U.S. territories

STARWOOD HOTELS & RESORTS WORLDWIDE, INC.

Systemwide⁽¹⁾ Statistics—Same Store

For the Twelve Months Ended December 31,

UNAUDITED


	Systemwide—Worldwide									Systemwide—North America									Systemwide—International
	2014			2013			Var. USD			2014			2013			Var. USD			2014			2013			Var. USD
TOTAL HOTELS
REVPAR ($)		123.08			117.31			4.9	%		128.76			121.14			6.3	%		116.64			112.95			3.3	%
ADR ($)		175.64			172.58			1.8	%		173.52			167.47			3.6	%		178.37			179.25			-0.5	%
Occupancy (%)		70.1	%		68.0	%		2.1			74.2	%		72.3	%		1.9			65.4	%		63.0	%		2.4

SHERATON
REVPAR ($)		104.24			99.43			4.8	%		109.83			104.01			5.6	%		98.10			94.38			3.9	%
ADR ($)		151.85			149.84			1.3	%		151.65			147.56			2.8	%		152.08			152.69			-0.4	%
Occupancy (%)		68.6	%		66.4	%		2.2			72.4	%		70.5	%		1.9			64.5	%		61.8	%		2.7

WESTIN
REVPAR ($)		137.20			130.01			5.5	%		137.75			128.50			7.2	%		136.10			133.02			2.3	%
ADR ($)		186.28			181.76			2.5	%		182.99			174.98			4.6	%		193.25			196.36			-1.6	%
Occupancy (%)		73.7	%		71.5	%		2.2			75.3	%		73.4	%		1.9			70.4	%		67.7	%		2.7

ST. REGIS/LUXURY COLLECTION
REVPAR ($)		208.08			196.80			5.7	%		264.51			247.36			6.9	%		185.22			176.06			5.2	%
ADR ($)		313.97			308.10			1.9	%		355.83			334.90			6.2	%		293.96			294.53			-0.2	%
Occupancy (%)		66.3	%		63.9	%		2.4			74.3	%		73.9	%		0.4			63.0	%		59.8	%		3.2

LE MERIDIEN
REVPAR ($)		130.33			128.12			1.7	%		222.21			210.46			5.6	%		114.75			114.16			0.5	%
ADR ($)		192.56			189.98			1.4	%		264.78			255.06			3.8	%		176.72			175.95			0.4	%
Occupancy (%)		67.7	%		67.4	%		0.3			83.9	%		82.5	%		1.4			64.9	%		64.9	%		0.0

W
REVPAR ($)		238.20			226.73			5.1	%		229.91			218.82			5.1	%		254.56			242.36			5.0	%
ADR ($)		304.04			294.20			3.3	%		289.46			277.41			4.3	%		334.03			329.77			1.3	%
Occupancy (%)		78.3	%		77.1	%		1.2			79.4	%		78.9	%		0.5			76.2	%		73.5	%		2.7

FOUR POINTS
REVPAR ($)		77.70			75.10			3.5	%		85.15			80.35			6.0	%		67.60			67.99			-0.6	%
ADR ($)		113.75			113.79			0.0	%		116.62			113.51			2.7	%		109.16			114.24			-4.4	%
Occupancy (%)		68.3	%		66.0	%		2.3			73.0	%		70.8	%		2.2			61.9	%		59.5	%		2.4

ALOFT
REVPAR ($)		80.01			74.30			7.7	%		93.52			85.18			9.8	%		50.93			51.01			-0.2	%
ADR ($)		112.72			108.93			3.5	%		123.32			117.25			5.2	%		84.15			86.90			-3.2	%
Occupancy (%)		71.0	%		68.2	%		2.8			75.8	%		72.6	%		3.2			60.5	%		58.7	%		1.8

(1)	Includes same-store Owned, managed and franchised hotels

STARWOOD HOTELS & RESORTS WORLDWIDE, INC.

Worldwide Hotel Results—Same Store

For the Twelve Months Ended December 31,

UNAUDITED


	Systemwide⁽¹⁾									Company Operated ⁽²⁾
	2014			2013			Var. USD			2014			2013			Var. USD
TOTAL WORLDWIDE
REVPAR ($)		123.08			117.31			4.9	%		137.72			131.58			4.7	%
ADR ($)		175.64			172.58			1.8	%		197.77			195.11			1.4	%
Occupancy (%)		70.1	%		68.0	%		2.1			69.6	%		67.4	%		2.2

AMERICAS
REVPAR ($)		126.23			118.96			6.1	%		158.68			150.23			5.6	%
ADR ($)		172.76			166.93			3.5	%		213.98			206.46			3.6	%
Occupancy (%)		73.1	%		71.3	%		1.8			74.2	%		72.8	%		1.4

North America
REVPAR ($)		128.76			121.14			6.3	%		164.64			155.69			5.7	%
ADR ($)		173.52			167.47			3.6	%		217.59			209.81			3.7	%
Occupancy (%)		74.2	%		72.3	%		1.9			75.7	%		74.2	%		1.5

Latin America
REVPAR ($)		96.17			93.07			3.3	%		110.07			105.78			4.1	%
ADR ($)		161.56			158.95			1.6	%		177.96			173.31			2.7	%
Occupancy (%)		59.5	%		58.6	%		0.9			61.9	%		61.0	%		0.9

ASIA PACIFIC
REVPAR ($)		102.38			99.33			3.1	%		104.68			100.46			4.2	%
ADR ($)		156.10			159.25			-2.0	%		158.74			161.16			-1.5	%
Occupancy (%)		65.6	%		62.4	%		3.2			65.9	%		62.3	%		3.6

Greater China
REVPAR ($)		96.73			89.55			8.0	%		96.11			88.68			8.4	%
ADR ($)		152.37			155.31			-1.9	%		150.86			153.79			-1.9	%
Occupancy (%)		63.5	%		57.7	%		5.8			63.7	%		57.7	%		6.0

Rest of Asia Pacific
REVPAR ($)		110.26			113.02			-2.4	%		123.03			125.83			-2.2	%
ADR ($)		160.93			163.85			-1.8	%		173.95			173.79			0.1	%
Occupancy (%)		68.5	%		69.0	%		-0.5			70.7	%		72.4	%		-1.7

EAME
REVPAR ($)		143.17			138.36			3.5	%		149.92			144.76			3.6	%
ADR ($)		214.83			212.43			1.1	%		222.95			220.37			1.2	%
Occupancy (%)		66.6	%		65.1	%		1.5			67.2	%		65.7	%		1.5

Europe
REVPAR ($)		154.39			148.16			4.2	%		168.77			161.51			4.5	%
ADR ($)		223.24			219.57			1.7	%		237.52			233.26			1.8	%
Occupancy (%)		69.2	%		67.5	%		1.7			71.1	%		69.2	%		1.9

Africa & Middle East
REVPAR ($)		119.82			118.03			1.5	%		120.13			118.33			1.5	%
ADR ($)		195.11			195.86			-0.4	%		196.23			196.95			-0.4	%
Occupancy (%)		61.4	%		60.3	%		1.1			61.2	%		60.1	%		1.1

(1)	Includes same-store Owned, managed and franchised hotels

(2)	Includes same-store Owned and managed hotels

STARWOOD HOTELS & RESORTS WORLDWIDE, INC.

Owned Hotel Results—Same Store

For the Twelve Months Ended December 31,

UNAUDITED


	Worldwide									North America									International
	2014			2013			Var. USD			2014			2013			Var. USD			2014			2013			Var. USD
TOTAL HOTELS	28 Hotels									9 Hotels									19 Hotels
REVPAR ($)		167.99			159.96			5.0	%		160.75			155.64			3.3	%		175.95			164.72			6.8	%
ADR ($)		228.42			223.56			2.2	%		210.77			208.10			1.3	%		249.39			242.30			2.9	%
Occupancy (%)		73.5	%		71.5	%		2.0			76.3	%		74.8	%		1.5			70.6	%		68.0	%		2.6

Total Revenue*		1,043,559			1,008,123			3.5	%		531,271			520,251			2.1	%		512,288			487,872			5.0	%
Total Expenses*		830,069			816,285			-1.7	%		429,469			422,571			-1.6	%		400,601			393,714			-1.7	%

*	Revenues and Expenses above are represented in ‘000s

STARWOOD HOTELS & RESORTS WORLDWIDE, INC.

Management Fees, Franchise Fees and Other Income

For the Twelve Months Ended December 31,

UNAUDITED ($ millions)


	Worldwide
	2014		2013		Variance		% Variance
Management Fees
Base Fees		377		358		19		5.3	%
Incentive Fees		214		202		12		5.9	%

Total Management Fees		591		560		31		5.5	%

Franchise Fees		236		214		22		10.3	%

Total Management and Franchise Fees (Core fees)		827		774		53		6.8	%

Other Management and Franchise Revenues⁽¹⁾		206		167		39		23.4	%

Total Management and Franchise Revenues		1,033		941		92		9.8	%


Other		24		24		—		—

Management Fees, Franchise Fees and Other Income		1,057		965		92		9.5	%

(1)	Other Management and Franchise Revenues primarily includes the amortization of the deferred gains of approximately $86 million in 2014 and $91 million in 2013 resulting from the sales of hotels subject to long-term management contracts and termination fees.

STARWOOD HOTELS & RESORTS WORLDWIDE, INC.

Vacation Ownership & Residential Revenues and Expenses

For the Twelve Months Ended December 31,

UNAUDITED ($ millions)


	2014			2013			$ Variance			% Variance
Originated Sales Revenues⁽¹⁾ — Vacation Ownership Sales		323			326			(3	)		(0.9	%)
Other Sales and Services Revenues ⁽²⁾		334			323			11			3.4	%
Deferred Revenues — Percentage of Completion		(1	)		(7	)		6			85.7	%
Deferred Revenues — Other ⁽³⁾		(13	)		(4	)		(9	)		n/m

Vacation Ownership Sales and Services Revenues		643			638			5			0.8	%
Residential Sales and Services Revenues ⁽⁴⁾		31			286			(255	)		(89.2	%)

Total Vacation Ownership & Residential Sales and Services Revenues		674			924			(250	)		(27.1	%)


Originated Sales Expenses⁽⁵⁾ — Vacation Ownership Sales		226			231			5			2.2	%
Other Expenses ⁽⁶⁾		253			248			(5	)		(2.0	%)
Deferred Expenses — Percentage of Completion		0			(4	)		(4	)		(100.0	%)
Deferred Expenses — Other		8			8			0			0.0	%

Vacation Ownership Expenses		487			483			(4	)		(0.8	%)
Residential Expenses ⁽⁴⁾		10			149			139			93.3	%

Total Vacation Ownership & Residential Expenses		497			632			135			21.4	%

(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 2014 and 2013, includes $20 and $266 million of revenues and $9 and $147 million expenses associated with the St. Regis Bal Harbour residential project, respectively.

(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.

n/m = not meaningful

STARWOOD HOTELS & RESORTS WORLDWIDE, INC.

Owned Hotels without Comparable Results and Other Selected Items

As of December 31, 2014

UNAUDITED ($ millions)

Owned Hotels without comparable results in 2014 and 2013:


*Hotel*		*Location*
Element Denver Park Meadows		Denver, CO
Sheraton Maria Isabel Hotel & Towers		Mexico City, Mexico
Sheraton Steamboat Resort		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
The Westin Resort & Spa, Los Cabos		Los Cabos, Mexico

Owned Hotels sold or closed in 2014 and 2013:


*Hotel*		*Location*
Aloft Lexington		Lexington, MA
Aloft Philadelphia Airport		Philadelphia, PA
Aloft San Francisco Airport		San Francisco, CA
Aloft Tucson University		Tucson, AZ
Element Lexington		Lexington, MA
Four Points by Sheraton Philadelphia Airport		Philadelphia, PA
Sheraton Ambassador Hotel		Monterrey, Mexico
Sheraton On The Park		Sydney, Australia
Sheraton Santa Maria de El Paular		Madrid, Spain
Sheraton Suites Philadelphia Airport		Philadelphia, PA
The Park Lane Hotel		London, England
The St. Regis Bal Harbour Resort		Miami Beach, FL
The St. Regis Rome		Rome, Italy
The Westin San Francisco Airport		San Francisco, CA
The Westin Dublin Hotel		Dublin, Ireland
W New Orleans		New Orleans, LA
W New Orleans—French Quarter		New Orleans, LA

Revenues and Expenses Associated with Hotels Sold or Closed in 2014 and 2013: ⁽¹⁾


	Q1		Q2		Q3		Q4		Full Year
Hotels Sold in 2013:
2013
Revenues	$	19	$	12	$	12	$	4	$	47
Expenses (excluding depreciation)	$	15	$	9	$	8	$	3	$	35

Hotels Sold or Closed in 2014:
2014
Revenues	$	50	$	44	$	37	$	20	$	151
Expenses (excluding depreciation)	$	38	$	31	$	27	$	12	$	108

2013
Revenues	$	63	$	65	$	60	$	70	$	258
Expenses (excluding depreciation)	$	47	$	48	$	46	$	50	$	191

(1)

Results consist of nine hotels sold or closed in 2014, two leased hotels converted to managed or franchised hotels 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.

STARWOOD HOTELS & RESORTS WORLDWIDE, INC.

Capital Expenditures

For the Three and Twelve Months Ended December 31, 2014

UNAUDITED ($ millions)


	Q4			YTD
Maintenance Capital Expenditures: ⁽¹⁾
Owned, Leased and Consolidated Joint Venture Hotels		26			61
Corporate/IT		48			146

Subtotal		74			207
Net capital expenditures for Vacation Ownership inventory ⁽²⁾		(4	)		(14	)
Development Capital		58			183

Total Capital Expenditures		128			376

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

(2)	Represents gross inventory capital expenditures of $19 million and $57 million in the three and twelve months ended December 31, 2014, less cost of sales of $23 million and $71 million in the three and twelve months ended December 31, 2014.

STARWOOD HOTELS & RESORTS WORLDWIDE, INC.

2014 Divisional Hotel Inventory Summary by Ownership by Brand

As of December 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		9		5,793		5		3,328		4		2,465		1		264		—		—		1		264		2		358		2		358		—		—		12		6,415
Westin		5		2,734		2		1,832		3		902		1		273		—		—		1		273		2		487		2		487		—		—		8		3,494
Four Points		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—
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		1		100		1		100		—		—		4		758
Le Meridien		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—
Aloft		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—
Element		1		123		1		123		—		—		—		—		—		—		—		—		—		—		—		—		—		—		1		123
Other		1		135		1		135		—		—		—		—		—		—		—		—		—		—		—		—		—		—		1		135

Total Owned		21		10,616		13		7,068		8		3,548		3		697		—		—		3		697		12		2,187		12		2,187		—		—		36		13,500

Managed & UJV
Sheraton		48		27,095		31		23,781		17		3,314		94		35,976		64		27,531		30		8,445		74		21,008		42		11,863		32		9,145		216		84,079
Westin		53		27,380		50		26,494		3		886		37		12,456		20		7,053		17		5,403		16		5,087		11		3,748		5		1,339		106		44,923
Four Points		3		426		—		—		3		426		32		9,088		22		6,535		10		2,553		12		2,300		4		499		8		1,801		47		11,814
W		28		8,274		25		7,673		3		601		10		2,743		4		1,465		6		1,278		5		937		4		495		1		442		43		11,954
Luxury Collection		11		1,938		4		1,648		7		290		12		2,478		6		1,306		6		1,172		27		5,077		22		3,487		5		1,590		50		9,493
St. Regis		12		2,347		10		2,038		2		309		9		2,307		6		1,657		3		650		8		1,842		4		675		4		1,167		29		6,496
Le Meridien		5		879		4		719		1		160		27		7,379		9		3,131		18		4,248		43		12,668		15		4,991		28		7,677		75		20,926
Aloft		1		180		—		—		1		180		12		3,071		9		2,101		3		970		4		943		3		535		1		408		17		4,194
Element		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—
Other		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—

Total Managed & UJV		161		68,519		124		62,353		37		6,166		233		75,498		140		50,779		93		24,719		189		49,862		105		26,293		84		23,569		583		193,879

Franchised
Sheraton		176		51,640		164		48,620		12		3,020		13		6,124		3		1,836		10		4,288		19		5,112		17		4,709		2		403		208		62,876
Westin		76		23,936		71		22,409		5		1,527		8		2,531		1		288		7		2,243		5		1,688		5		1,688		—		—		89		28,155
Four Points		130		19,908		117		18,058		13		1,850		9		1,513		1		126		8		1,387		7		1,085		7		1,085		—		—		146		22,506
W		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—
Luxury Collection		11		2,102		8		1,651		3		451		11		3,129		—		—		11		3,129		13		1,938		13		1,938		—		—		35		7,169
St. Regis		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—
Le Meridien		16		3,733		15		3,622		1		111		5		1,209		1		160		4		1,049		2		275		2		275		—		—		23		5,217
Aloft		67		10,119		63		9,382		4		737		6		1,001		—		—		6		1,001		1		116		1		116		—		—		74		11,236
Element		12		1,928		12		1,928		—		—		—		—		—		—		—		—		1		133		1		133		—		—		13		2,061
Other		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—

Total Franchised		488		113,366		450		105,670		38		7,696		52		15,507		6		2,410		46		13,097		48		10,347		46		9,944		2		403		588		139,220

Systemwide
Sheraton		233		84,528		200		75,729		33		8,799		108		42,364		67		29,367		41		12,997		95		26,478		61		16,930		34		9,548		436		153,370
Westin		134		54,050		123		50,735		11		3,315		46		15,260		21		7,341		25		7,919		23		7,262		18		5,923		5		1,339		203		76,572
Four Points		133		20,334		117		18,058		16		2,276		41		10,601		23		6,661		18		3,940		19		3,385		11		1,584		8		1,801		193		34,320
W		29		8,783		26		8,182		3		601		10		2,743		4		1,465		6		1,278		7		1,602		6		1,160		1		442		46		13,128
Luxury Collection		24		4,864		13		3,942		11		922		23		5,607		6		1,306		17		4,301		45		7,592		40		6,002		5		1,590		92		18,063
St. Regis		14		2,845		12		2,536		2		309		10		2,467		6		1,657		4		810		9		1,942		5		775		4		1,167		33		7,254
Le Meridien		21		4,612		19		4,341		2		271		32		8,588		10		3,291		22		5,297		45		12,943		17		5,266		28		7,677		98		26,143
Aloft		68		10,299		63		9,382		5		917		18		4,072		9		2,101		9		1,971		5		1,059		4		651		1		408		91		15,430
Element		13		2,051		13		2,051		—		—		—		—		—		—		—		—		1		133		1		133		—		—		14		2,184
Other		1		135		1		135		—		—		—		—		—		—		—		—		—		—		—		—		—		—		1		135
Vacation Ownership		15		7,626		14		7,046		1		580		—		—		—		—		—		—		—		—		—		—		—		—		15		7,626

Total Systemwide		685		200,127		601		182,137		84		17,990		288		91,702		146		53,189		142		38,513		249		62,396		163		38,424		86		23,972		1,222		354,225

Note: All references to Owned or Owned Hotels reflect the Company’s owned, leased, and consolidated joint venture hotels.

STARWOOD HOTELS & RESORTS WORLDWIDE, INC.

Vacation Ownership Inventory Pipeline

As of December 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
Sheraton		7		7		6		3,079		—		712		3,791
Westin		10		9		9		1,640		58		433		2,131
St. Regis		2		2		—		56		—		—		56
The Luxury Collection		1		1		—		6		—		—		6
Unbranded		2		2		1		99		—		—		99

Total SVO, Inc.		22		21		16		4,880		58		1,145		6,083

Unconsolidated Joint Ventures (UJV’s)		1		1		1		198		—		—		198

Total including UJV’s		23		22		17		5,078		58		1,145		6,281

Total Intervals Including UJV’s ⁽⁷⁾								264,056		3,016		59,540		326,612

(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.

STARWOOD HOTEL & RESORTS WORLDWIDE, INC - FORM 8-K - EX-99.1 - February 10, 2015

Attached files

STARWOOD HOTEL & RESORTS WORLDWIDE, INC Reports