Starwood Reports Positive Earnings
STAMFORD, Conn. (AP) _ Starwood Hotels & Resorts Worldwide Inc. said Thursday that its second-quarter net income rose 12 percent due in part to cost-control efforts.
Its adjusted results topped analysts’ estimates.
For the period ended June 30, the hotel operator _ whose brands include Sheraton, St. Regis, W Hotels and others _ earned $137 million, or 71 cents per share. That compares with $122 million, or 62 cents per share, a year earlier.
Removing one-time income tax charges, earnings from continuing operations were 79 cents per share.
Analysts predicted earnings of 73 cents per share, according to a FactSet survey.
Costs and expenses fell to $1.31 billion from $1.38 billion. The year-ago period was also weighed down by $15 million in one-time charges related to debt extinguishment.
Revenue declined 4 percent to $1.56 billion from $1.62 billion, but still met Wall Street’s expectations.
Worldwide systemwide revenue per available room for hotels open at least a year increased 4.4 percent. For those in North America, the figure climbed 5.2 percent. Internationally, the metric rose 3.3 percent.
Revenue per available room, or revpar, is a key indicator of a lodging company’s health.
CEO Frits van Paasschen said in a statement that there continues to be a tight supply of hotels in North America and Europe. Occupancy at North American properties totaled 76 percent, a company record. European occupancy was nearly 72 percent.
Starwood, which is based in Stamford, Conn., has 1,162 properties in almost 100 countries.
Its shares finished at $63.32 on Wednesday. Its shares have traded in a 52-week range of $49.38 to $70.16.