Starwood posts $33M Q1 profit
Starwood posts $33M Q1 profit
- 2004-04-22 - Pacific Business News (Honolulu)
Starwood posts $33M Q1 profit
Sheraton parent Starwood Hotels & Resorts Worldwide Inc., in a quarterly earnings report peppered with references to Hawaii, has swung to a profit in the first quarter.
"This quarter continues the momentum we saw building in our company the past six months especially now as the world returns to an accelerated travel pattern," CEO Barry Sternlicht said.
He said the company is reaping higher profits from its franchises, which include all four Sheraton-branded hotels in Waikiki, and is making better money as well from its owned properties on Maui and Kauai.
First quarter at a glance:
Net income: $33 million. Year ago: Loss of $117 million.
Per share: 16 cents. Year ago: Loss of 58 cents.
Revenue: $1.23 billion. Year ago: $1.09 billion.
Revpar growth was particularly strong at company-owned hotels on Maui and in New York, San Francisco, Houston and Washington D.C.
Starwood franchises four Sheraton-branded hotels in Honolulu -- Kyo-Ya's Sheraton Waikiki, Princess Kaiulani, Royal Hawaiian and Moana Surfrider -- and a "W" boutique hotel on Waikiki's Gold Coast in the shadow of Diamond Head. Sternlicht said Starwood's results are currently being driven by strong growth in franchise and management fees.
The company also said it will soon announce a new W Resort on Maui.
Sheraton revpars are up 8.7 percent from last year but W revpars are up 11.9 percent.
"We will also reinvest capital for additional interval ownership projects on our oceanfront 20 acres on Princeville, Kauai, Hawaii and in our recently acquired Sheraton in Poipu, Kauai," Sternlicht said.
Starwood's profit was greater than most analysts had expected, as revpar -- revenue per available room -- rose 9.4 percent in U.S. markets and more internationally.
"It is gratifying," Sternlicht said, "to see the strategies and investments we have made in the recession drive our performance now."
Starwood Vacation Ownership revenues, excluding gains on sales of notes receivable, increased 39.1 percent to $128 million as contract sales rose 64.3 percent from year-before levels. The vacation ownership division cited strong demand at four locations one of which was Maui.
Gross capital spending during the quarter included approximately $50 million in hotel assets including $19 million in vacation ownership construction, much of it at Westin Kaanapali Ocean Resort Villas on Maui.
Additionally during the quarter, development capital of $132 million included the acquisition of the 413-room Sheraton Kauai Resort for approximately $40 million.
- 2004-04-22 - Pacific Business News (Honolulu)
Starwood posts $33M Q1 profit
Sheraton parent Starwood Hotels & Resorts Worldwide Inc., in a quarterly earnings report peppered with references to Hawaii, has swung to a profit in the first quarter.
"This quarter continues the momentum we saw building in our company the past six months especially now as the world returns to an accelerated travel pattern," CEO Barry Sternlicht said.
He said the company is reaping higher profits from its franchises, which include all four Sheraton-branded hotels in Waikiki, and is making better money as well from its owned properties on Maui and Kauai.
First quarter at a glance:
Net income: $33 million. Year ago: Loss of $117 million.
Per share: 16 cents. Year ago: Loss of 58 cents.
Revenue: $1.23 billion. Year ago: $1.09 billion.
Revpar growth was particularly strong at company-owned hotels on Maui and in New York, San Francisco, Houston and Washington D.C.
Starwood franchises four Sheraton-branded hotels in Honolulu -- Kyo-Ya's Sheraton Waikiki, Princess Kaiulani, Royal Hawaiian and Moana Surfrider -- and a "W" boutique hotel on Waikiki's Gold Coast in the shadow of Diamond Head. Sternlicht said Starwood's results are currently being driven by strong growth in franchise and management fees.
The company also said it will soon announce a new W Resort on Maui.
Sheraton revpars are up 8.7 percent from last year but W revpars are up 11.9 percent.
"We will also reinvest capital for additional interval ownership projects on our oceanfront 20 acres on Princeville, Kauai, Hawaii and in our recently acquired Sheraton in Poipu, Kauai," Sternlicht said.
Starwood's profit was greater than most analysts had expected, as revpar -- revenue per available room -- rose 9.4 percent in U.S. markets and more internationally.
"It is gratifying," Sternlicht said, "to see the strategies and investments we have made in the recession drive our performance now."
Starwood Vacation Ownership revenues, excluding gains on sales of notes receivable, increased 39.1 percent to $128 million as contract sales rose 64.3 percent from year-before levels. The vacation ownership division cited strong demand at four locations one of which was Maui.
Gross capital spending during the quarter included approximately $50 million in hotel assets including $19 million in vacation ownership construction, much of it at Westin Kaanapali Ocean Resort Villas on Maui.
Additionally during the quarter, development capital of $132 million included the acquisition of the 413-room Sheraton Kauai Resort for approximately $40 million.
posted by DP at 5:52 PM
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