Exhibit 99.1
Investor Contact | 
|
Stephen Pettibone |
203-351-3500 |
|
| |
| One StarPoint Stamford, CT 06902 United States |
Media Contact |
KC Kavanagh |
866-478-2777 |
STARWOOD REPORTS SECOND QUARTER
2015 RESULTS
STAMFORD, Conn. (July 30, 2015) – Starwood Hotels & Resorts Worldwide, Inc. (NYSE: HOT) today reported second quarter 2015 financial results.
Second Quarter 2015 Highlights
§ | Excluding special items, EPS from continuing operations was $0.84. Including special items, EPS from continuing operations was $0.79. |
§ | Adjusted EBITDA was $311 million. |
§ | Excluding special items, income from continuing operations was $143 million. Including special items, income from continuing operations was $136 million. |
§ | Worldwide Systemwide REVPAR for Same-Store Hotels increased 4.1% in constant dollars (decreased 0.7% in actual dollars) compared to 2014. Systemwide REVPAR for Same-Store Hotels in North America increased 5.3% in constant dollars (4.1% in actual dollars). |
§ | Management fees, franchise fees and other income, which were negatively impacted by foreign exchange rates, decreased 1.5% compared to 2014. Core fees decreased 1.0% compared to 2014. |
§ | Earnings from Starwood’s vacation ownership and residential business decreased approximately $2 million compared to 2014. |
§ | During the quarter, the Company signed 64 hotel management and franchise contracts, representing approximately 14,400 rooms, a 69% increase in signed rooms compared to 2014. The Company also opened 21 hotels and resorts with approximately 4,000 rooms in the second quarter of 2015. |
§ | During the quarter, the Company paid a quarterly dividend of $0.375 per share and repurchased 1.2 million shares at a total cost of $105 million and a weighted average price of $84.24 per share. |
§ | During the quarter, the Company sold three hotels for gross cash proceeds of approximately $533 million, subject to long-term management or franchise contracts. |
Second Quarter 2015 Earnings Summary
Starwood Hotels & Resorts Worldwide, Inc. (“Starwood” or the “Company”) today reported EPS from continuing operations for the second quarter of 2015 of $0.79 compared to $0.80 in the second quarter of 2014. Excluding special items, EPS from continuing operations was $0.84 for the second quarter of 2015 compared to $0.77 in the second quarter of 2014.
Special items in the second quarter of 2015 consisted of restructuring and other special charges of $23 million (pre-tax and $12 million after-tax), as well as a $5 million tax benefit on certain non-recurring items. Special items in the second quarter of 2014 totaled a benefit of $6 million (after-tax). Excluding special items, the effective income tax rate in the second quarter of 2015 was 30.1% compared to 33.3% in the second quarter of 2014.
Income from continuing operations was $136 million in the second quarter of 2015, compared to $153 million in the second quarter of 2014. Excluding special items, income from continuing operations was $143 million in the second quarter of 2015 compared to $147 million in the second quarter of 2014.
Net income was $136 million and $0.79 per share in the second quarter of 2015, compared to $153 million and $0.80 per share in the second quarter of 2014.
Adam Aron, Chief Executive Officer of the Company on an interim basis, said, “Starwood delivered strong Adjusted EBITDA and EPS before special items in the second quarter of 2015, even in the face of macroeconomic headwinds. We improved our performance while streamlining our organization and reducing our costs.
“At the same time, we have initiated efforts to reinvigorate our brands with the launch of the new Tribute Portfolio brand and the announcement of Sheraton 2020. Similar efforts to enhance the market strength of all our brands are underway, especially for The Luxury Collection and Aloft. Our pace of hotel footprint growth is also accelerating, with strong signings in the second quarter.
“The sales of the Gritti Palace, the Phoenician and the Element Denver Park Meadows indicate that we are successfully executing against our asset light strategy. Looking ahead, we remain bullish about our long term growth.”
Six Months Ended June 30, 2015 Earnings Summary
Income from continuing operations was $235 million in the six months ended June 30, 2015 compared to $289 million in the same period in 2014. Excluding special items, income from continuing operations was $253 million in the six months ended June 30, 2015 compared to $269 million in the same period in 2014. The decreases primarily reflect the impact of the sales of nine hotels since the second quarter of 2014.
Net income was $235 million and $1.37 per share in the six months ended June 30, 2015 compared to $290 million and $1.52 per share in the same period in 2014.
Adjusted EBITDA was $585 million in the six months ended June 30, 2015 compared to $605 million in the same period in 2014.
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Second Quarter 2015 Operating Results
Management and Franchise Revenues
Worldwide Systemwide REVPAR for Same-Store Hotels increased 4.1% in constant dollars (decreased 0.7% in actual dollars) compared to the second quarter of 2014. International Systemwide REVPAR for Same-Store Hotels increased 2.7% in constant dollars (decreased 6.6% in actual dollars).
Changes in REVPAR for Worldwide Systemwide Same-Store Hotels by region:
| | REVPAR | |
Region | | Constant Dollars | | | Actual Dollars | |
Americas: | | | | | | | | |
North America | | | 5.3 | % | | | 4.1 | % |
Latin America | | | (3.2 | )% | | | (3.2 | )% |
Asia Pacific: | | | | | | | | |
Greater China | | | (0.3 | )% | | | 0.1 | % |
Rest of Asia | | | 7.5 | % | | | (2.4 | )% |
Europe, Africa & Middle East: | | | | | | | | |
Europe | | | 6.1 | % | | | (14.0 | )% |
Africa & Middle East | | | (4.0 | )% | | | (8.2 | )% |
Changes in REVPAR for Worldwide Systemwide Same-Store Hotels by brand:
| | REVPAR | |
Brand | | Constant Dollars | | | Actual Dollars | |
St. Regis/Luxury Collection | | | 5.1 | % | | | (2.8 | )% |
W Hotels | | | 3.8 | % | | | 0.5 | % |
Westin | | | 5.9 | % | | | 1.6 | % |
Sheraton | | | 2.6 | % | | | (1.5 | )% |
Le Méridien | | | 2.3 | % | | | (6.5 | )% |
Four Points by Sheraton | | | 3.4 | % | | | (0.6 | )% |
Aloft | | | 10.0 | % | | | 8.5 | % |
Worldwide Same-Store Company-Operated gross operating profit margins increased approximately 50 basis points compared to 2014. International gross operating profit margins for Same-Store Company-Operated properties increased approximately 20 basis points. North American Same-Store Company-Operated gross operating profit margins increased approximately 75 basis points.
Management fees, franchise fees and other income, which were negatively impacted by foreign exchange rates, were $256 million, down $4 million, or 1.5% compared to the second quarter of 2014. Core fees decreased 1.0% to $206 million. Other management and franchise revenues decreased 4.2% or $2 million.
Development
During the second quarter of 2015, the Company signed 64 hotel management and franchise contracts, representing approximately 14,400 rooms, of which 49 are new builds and 15 are conversions from other brands. At June 30, 2015, the Company had approximately 500 hotels in the active pipeline representing approximately 112,000 rooms.
During the second quarter of 2015, 21 new hotels and resorts (representing approximately 4,000 rooms) entered the system, including Sheraton Zhanjiang Hotel (China, 440 rooms), Le Méridien Saigon (Vietnam, 350 rooms), Sheraton Barra Rio de Janeiro Hotel (Brazil, 292 rooms), The Westin Jekyll Island (Georgia, 200 rooms), Aloft South Beach (Florida, 237 rooms), and Augustine, a Luxury Collection Hotel, Prague (Czech Republic, 101 rooms). During the quarter, eight properties (representing approximately 1,800 rooms) were removed from the system.
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Owned Hotels
Worldwide REVPAR at Starwood Same-Store Owned Hotels increased 6.8% in constant dollars (decreased 2.6% in actual dollars) when compared to 2014. REVPAR at Starwood Same-Store Owned Hotels in North America increased 8.6% in constant dollars (4.8% actual dollars). Internationally, Starwood Same-Store Owned Hotel REVPAR increased 4.9% in constant dollars (decreased 10.3% in actual dollars).
Revenues at Starwood Same-Store Owned Hotels Worldwide increased 7.3% in constant dollars (decreased 2.0% in actual dollars) while costs and expenses increased 5.6% in constant dollars (decreased 3.0% in actual dollars) when compared to 2014. Margins at these hotels increased approximately 80 basis points compared to 2014.
Revenues at Starwood Same-Store Owned Hotels in North America increased 8.2% in constant dollars (4.4% in actual dollars) while costs and expenses increased 5.8% in constant dollars (2.5% in actual dollars) when compared to 2014. Margins at these hotels increased approximately 150 basis points compared to 2014.
Internationally, revenues at Starwood Same-Store Owned Hotels increased 6.3% in constant dollars (decreased 8.9% in actual dollars) while costs and expenses increased 5.4% in constant dollars (decreased 9.5% in actual dollars) when compared to 2014. Margins at these hotels increased approximately 40 basis points compared to 2014.
Revenues at Owned Hotels, which were negatively impacted by asset sales since the second quarter of 2014, were $356 million, compared to $414 million in 2014. Expenses at Owned Hotels were $265 million compared to $314 million in 2014.
Vacation Ownership
Vacation ownership revenues for the three months ended June 30, 2015 increased 5.6%, to $169 million, compared to the corresponding period in 2014 primarily due to the timing of deferred revenues and an increase in revenues from resort operations. Originated contract sales of vacation ownership intervals remained flat for the three months ended June 30, 2015, compared to the corresponding period in 2014, with a 1.8% increase in the number of contracts signed, offset by a decrease in the average price per vacation ownership unit sold to approximately $14,800.
Residential
During the second quarter of 2015, the Company’s residential revenues were $1 million compared to $11 million in 2014 as the St. Regis Bal Harbour residential project sold out in early 2014.
Selling, General, Administrative and Other
During the second quarter of 2015, selling, general, administrative and other expenses (“SG&A”) decreased 2.9% to $99 million compared to $102 million in 2014, primarily due to an acceleration of the implementation of the Company’s previously announced cost savings initiatives and timing of expenses. The Company now targets a decrease of 2% to 4% for the full year.
Capital
Gross capital spending during the quarter included approximately $37 million of maintenance capital and $38 million of development capital.
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Asset Sales
During the second quarter of 2015, the Company completed the sales of The Phoenician, a Luxury Collection Resort, Scottsdale, for gross cash proceeds of $400 million and The Gritti Palace, a Luxury Collection Hotel, Venice, for gross cash proceeds of approximately $117 million, both of which were sold subject to long-term management contracts. Additionally, during the second quarter of 2015, the Company sold the Element Denver Park Meadows for gross cash proceeds of approximately $16 million, subject to a long-term franchise contract. Year to date through June 30, 2015, the Company has received gross cash proceeds from asset sales of approximately $566 million, including approximately $33 million from the sale of minority interests in two hotels.
Restructuring and Other Special Charges
During the second quarter of 2015, the Company recorded $13 million of restructuring charges associated with its previously announced cost savings initiatives and $10 million of other special charges. Other special charges primarily consist of costs associated with the planned spin-off of the Company’s vacation ownership business.
Dividend
On May 28, 2015, the Company declared a regular quarterly dividend of $0.375 per share, which was paid on June 17, 2015. The total dividends paid in the second quarter of 2015 were approximately $64 million.
Share Repurchase
In the second quarter of 2015, the Company repurchased 1.2 million shares at a total cost of approximately $105 million and a weighted average price of $84.24 per share. As of June 30, 2015, approximately $601 million remained available under the Company’s share repurchase authorization. Year to date through June 30, 2015, the Company has repurchased 2.8 million shares at a total cost of $228 million and an average price of $80.91.
Balance Sheet
At June 30, 2015, the Company had gross debt of $2.1 billion, cash and cash equivalents of $769 million (including $34 million of restricted cash) and net debt of $1.4 billion, compared to net debt of $1.7 billion as of December 31, 2014, in each case excluding debt and restricted cash associated with securitized vacation ownership notes receivable. Net debt at June 30, 2015, including $208 million of debt and $11 million of restricted cash associated with securitized vacation ownership notes receivable, was $1.6 billion.
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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 SG&A 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 4% to 6% in constant dollars (approximately 400 basis points lower in actual dollars at current exchange rates). |
§ | REVPAR increases at Same-Store Owned Hotels Worldwide of 5% to 7% in constant dollars (approximately 650 basis points lower in actual dollars at current exchange rates). |
§ | Margins at Same-Store Owned Hotels Worldwide increase 50 to 100 basis points. |
§ | Core fees increase approximately 2% to 4%. |
§ | Management fees, franchise fees and other income are expected to be approximately flat. |
§ | Earnings from the Company’s vacation ownership and residential business of approximately $155 million to $165 million. |
§ | SG&A decreases approximately 2% to 4%. |
§ | 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 St. Regis Bal Harbour residential project, which is sold out. |
§ | Shifts in exchange rates since 2014 will negatively impact full year earnings by approximately $41 million if exchange rates stay at current levels. |
§ | Depreciation and amortization is expected to be approximately $307 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 $135 million. |
§ | EPS before special items is expected to be approximately $2.93 to $3.03 (based on the assumptions above). |
§ | Cash flow from operations is expected to be approximately $740 million to $840 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 Westin Nanea Ocean Villas, 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. |
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For the three months ended September 30, 2015:
§ | Adjusted EBITDA is expected to be approximately $285 million to $295 million (based on the assumptions below). |
§ | REVPAR increases at Same-Store Systemwide Hotels Worldwide of 4% to 6% in constant dollars (approximately 550 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 800 basis points lower in actual dollars at current exchange rates). |
§ | Core fees increase approximately 1% to 3%. |
§ | Management fees, franchise fees and other income increase 2% to 4%. |
§ | Earnings from the Company’s vacation ownership and residential business of approximately $35 million to $40 million. |
§ | Shifts in exchange rates since the third quarter of 2014 will negatively impact third quarter 2015 earnings by approximately $11 million if exchange rates stay at current levels. |
§ | EPS is expected to be approximately $0.69 to $0.73 (based on the assumptions above). |
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Special Items
The Company’s special items included a pre-tax charge of $23 million ($7 million charge after-tax) in the second quarter of 2015 compared to a pre-tax and after-tax benefit of $6 million in the same period of 2014.
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 June 30, | | | | | Six Months Ended June 30, | |
2015 | | | 2014 | | | | | 2015 | | | 2014 | |
$ | 143 | | | $ | 147 | | | Income from continuing operations before special items | | $ | 253 | | | $ | 269 | |
$ | 0.84 | | | $ | 0.77 | | | EPS before special items | | $ | 1.48 | | | $ | 1.40 | |
| | | | | | | | Special Items | | | | | | | | |
| (23 | ) | | | 3 | | | Restructuring and other special (charges) credits, net (a) | | | (54 | ) | | | 3 | |
| — | | | | 3 | | | Gain (loss) on asset dispositions and impairments, net (b) | | | 14 | | | | (33 | ) |
| — | | | | — | | | Gain on sale of an unconsolidated joint venture hotel (c) | | | 4 | | | | — | |
| (23 | ) | | | 6 | | | Total special items – pre-tax | | | (36 | ) | | | (30 | ) |
| 13 | | | | — | | | Income tax benefit (expense) for special items (d) | | | 13 | | | | (2 | ) |
| 3 | | | | — | | | Income tax benefit - other non-recurring items (e) | | | 5 | | | | 52 | |
| (7 | ) | | | 6 | | | Total special items – after-tax | | | (18 | ) | | | 20 | |
$ | 136 | | | $ | 153 | | | Income from continuing operations | | $ | 235 | | | $ | 289 | |
$ | 0.79 | | | $ | 0.80 | | | EPS including special items | | $ | 1.37 | | | $ | 1.51 | |
a) | During the three months ended June 30, 2015, the net charge relates to costs associated with the Company’s previously announced cost savings initiatives of $12 million, $10 million in costs associated with the planned spin-off of the vacation ownership business, and a $6 million charge for technology related costs and expenses that the Company no longer deems recoverable, partially offset by the reversal of $5 million of reserves as a result of the favorable resolutions of an exposure from a previous disposition, and a dispute with a foreign taxing authority. During the six months ended June 30, 2015, the net charge further includes $15 million in severance costs, including $7 million associated with the resignation of the Company’s former CEO, the establishment of a $6 million reserve related to potential liabilities assumed in connection with the 2005 acquisition of Le Méridien, and $6 million in costs associated with the planned spin-off of the vacation ownership business. |
b) | During the six months ended June 30, 2015, the net benefit primarily relates to the sale of a minority partnership interest in a hotel. During the three months ended June 30, 2014, the net gain is primarily due to the conversion of a leased hotel to a managed hotel discussed below. During the six months ended June 30, 2014, the net loss primarily relates to the impairment of two hotels, one of which was sold subject to a long-term franchise contract and the other of which represents a leased hotel that was converted to a managed hotel. In addition, during the six months ended June 30, 2014, the Company recorded an impairment charge associated with one of its foreign unconsolidated joint ventures. |
c) | During the six months ended June 30, 2015, the net benefit relates to a gain recognized on the sale of a hotel by a joint venture in which the Company holds a minority interest. This gain is included in the equity earnings and gains from unconsolidated ventures, net line item in the statement of income. |
d) | During the three and six months ended June 30, 2015 and 2014, the amounts primarily relate to the tax benefit (expense) on the pre-tax special items. |
e) | During the three months ended June 30, 2015, the $3 million benefit primarily relates to favorable tax law changes. During the six months ended June 30, 2015, the net benefit further includes a change in tax reserves. During the six months ended June 30, 2014, the net benefit primarily relates to the settlement of a foreign tax audit. |
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 second quarter financial results at 1:00 p.m. Eastern Daylight Time today, available via webcast on the Company’s website at
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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, July 30 and will be available for one year. Alternatively, participants may dial into the live call at (866) 921-0636 with conference ID 69941686. 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 Thursday, July 30 and will be available for one week; the call replay can be accessed by dialing (855) 859-2056 with conference ID 69941686. 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 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.
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. All references to core fees represent total management and franchise fees.
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Starwood Hotels & Resorts Worldwide, Inc. is one of the leading hotel and leisure companies in the world with more than 1,200 properties in some 100 countries and over 180,000 employees at its owned and managed properties. Starwood is a fully integrated owner, operator and franchisor of hotels, resorts and residences under the renowned brands: St. Regis®, The Luxury Collection®, W®, Westin®, Le Méridien®, Sheraton®, Four Points® by Sheraton, Aloft®, Element® and the recently introduced Tribute Portfolio™. The Company also boasts one of the industry’s leading loyalty programs, Starwood Preferred Guest (SPG®). Visit www.starwoodhotels.com for more information and stay connected @starwoodbuzz on Twitter and Instagram and facebook.com/Starwood. 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 June 30, | | | | | Six Months Ended June 30, | |
2015 | | | 2014 | | | % Variance | | | | | 2015 | | | 2014 | | | % Variance | |
| | | | | | | | | | | | Revenues | | | | | | | | | | | | |
$ | 356 | | | $ | 414 | | | | (14.0 | ) | | Owned, leased and consolidated joint venture hotels | | $ | 672 | | | $ | 778 | | | | (13.6 | ) |
| 170 | | | | 171 | | | | (0.6 | ) | | Vacation ownership and residential sales and services | | | 357 | | | | 345 | | | | 3.5 | |
| 256 | | | | 260 | | | | (1.5 | ) | | Management fees, franchise fees and other income | | | 496 | | | | 508 | | | | (2.4 | ) |
| 699 | | | | 694 | | | | 0.7 | | | Other revenues from managed and franchised properties (a) | | | 1,371 | | | | 1,366 | | | | 0.4 | |
| 1,481 | | | | 1,539 | | | | (3.8 | ) | | | | | 2,896 | | | | 2,997 | | | | (3.4 | ) |
| | | | | | | | | | | | Costs and Expenses | | | | | | | | | | | | |
| 265 | | | | 314 | | | | 15.6 | | | Owned, leased and consolidated joint venture hotels | | | 527 | | | | 615 | | | | 14.3 | |
| 126 | | | | 125 | | | | (0.8 | ) | | Vacation ownership and residential | | | 263 | | | | 253 | | | | (4.0 | ) |
| 99 | | | | 102 | | | | 2.9 | | | Selling, general, administrative and other | | | 190 | | | | 197 | | | | 3.6 | |
| 23 | | | | (3 | ) | | n/m | | | Restructuring and other special charges (credits), net | | | 54 | | | | (3 | ) | | n/m | |
| 65 | | | | 63 | | | | (3.2 | ) | | Depreciation | | | 127 | | | | 123 | | | | (3.3 | ) |
| 8 | | | | 7 | | | | (14.3 | ) | | Amortization | | | 15 | | | | 15 | | | | — | |
| 699 | | | | 694 | | | | (0.7 | ) | | Other expenses from managed and franchised properties (a) | | | 1,371 | | | | 1,366 | | | | (0.4 | ) |
| 1,285 | | | | 1,302 | | | | 1.3 | | | | | | 2,547 | | | | 2,566 | | | | 0.7 | |
| 196 | | | | 237 | | | | (17.3 | ) | | Operating income | | | 349 | | | | 431 | | | | (19.0 | ) |
| 11 | | | | 9 | | | | 22.2 | | | Equity earnings and gains from unconsolidated ventures, net | | | 26 | | | | 18 | | | | 44.4 | |
| (27 | ) | | | (23 | ) | | | (17.4 | ) | | Interest expense, net of interest income of $1, $1, $2 and $2 | | | (58 | ) | | | (46 | ) | | | (26.1 | ) |
| — | | | | 3 | | | | (100.0 | ) | | Gain (loss) on asset dispositions and impairments, net | | | 14 | | | | (33 | ) | | n/m | |
| 180 | | | | 226 | | | | (20.4 | ) | | Income from continuing operations before taxes and noncontrolling interests | | | 331 | | | | 370 | | | | (10.5 | ) |
| (44 | ) | | | (73 | ) | | | 39.7 | | | Income tax expense | | | (96 | ) | | | (81 | ) | | | (18.5 | ) |
| 136 | | | | 153 | | | | (11.1 | ) | | Income from continuing operations | | | 235 | | | | 289 | | | | (18.7 | ) |
| | | | | | | | | | | | Discontinued Operations: | | | | | | | | | | | | |
| — | | | | — | | | | — | | | Gain on dispositions, net of tax | | | — | | | | 1 | | | | (100.0 | ) |
$ | 136 | | | $ | 153 | | | | (11.1 | ) | | Net income attributable to Starwood | | $ | 235 | | | $ | 290 | | | | (19.0 | ) |
| | | | | | | | | | | | Earnings Per Share – Basic | | | | | | | | | | | | |
$ | 0.80 | | | $ | 0.81 | | | | (1.2 | ) | | Continuing operations | | $ | 1.38 | | | $ | 1.52 | | | | (9.2 | ) |
| — | | | | — | | | | — | | | Discontinued operations | | | — | | | | 0.01 | | | | (100.0 | ) |
$ | 0.80 | | | $ | 0.81 | | | | (1.2 | ) | | Net income | | $ | 1.38 | | | $ | 1.53 | | | | (9.8 | ) |
| | | | | | | | | | | | Earnings Per Share – Diluted | | | | | | | | | | | | |
$ | 0.79 | | | $ | 0.80 | | | | (1.3 | ) | | Continuing operations | | $ | 1.37 | | | $ | 1.51 | | | | (9.3 | ) |
| — | | | | — | | | | — | | | Discontinued operations | | | — | | | | 0.01 | | | | (100.0 | ) |
$ | 0.79 | | | $ | 0.80 | | | | (1.3 | ) | | Net income | | $ | 1.37 | | | $ | 1.52 | | | | (9.9 | ) |
| 169 | | | | 190 | | | | | | | Weighted average number of shares | | | 170 | | | | 190 | | | | | |
| 170 | | | | 191 | | | | | | | Weighted average number of shares assuming dilution | | | 171 | | | | 191 | | | | | |
(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)
| | June 30, 2015 | | | December 31, 2014 | |
| | (unaudited) | | | | | |
Assets | | | | | | | | |
Current assets: | | | | | | | | |
Cash and cash equivalents | | $ | 735 | | | $ | 935 | |
Restricted cash | | | 42 | | | | 84 | |
Accounts receivable, net of allowance for doubtful accounts of $72 and $63 | | | 675 | | | | 661 | |
Inventories | | | 246 | | | | 236 | |
Securitized vacation ownership notes receivable, net of allowance for doubtful accounts of $3 and $4 | | | 44 | | | | 47 | |
Deferred income taxes | | | 171 | | | | 199 | |
Prepaid expenses and other | | | 182 | | | | 159 | |
Total current assets | | | 2,095 | | | | 2,321 | |
Investments | | | 204 | | | | 214 | |
Plant, property and equipment, net | | | 2,320 | | | | 2,634 | |
Goodwill and intangible assets, net | | | 1,912 | | | | 1,956 | |
Deferred income taxes | | | 579 | | | | 596 | |
Other assets (a) | | | 750 | | | | 711 | |
Securitized vacation ownership notes receivable, net | | | 193 | | | | 227 | |
Total assets | | $ | 8,053 | | | $ | 8,659 | |
Liabilities and Stockholders’ Equity | | | | | | | | |
Current liabilities: | | | | | | | | |
Short-term borrowings and current maturities of long-term debt (b) | | $ | 299 | | | $ | 297 | |
Accounts payable | | | 94 | | | | 101 | |
Current maturities of long-term securitized vacation ownership debt | | | 57 | | | | 73 | |
Accrued expenses | | | 1,324 | | | | 1,307 | |
Accrued salaries, wages and benefits | | | 373 | | | | 416 | |
Accrued taxes and other | | | 261 | | | | 256 | |
Total current liabilities | | | 2,408 | | | | 2,450 | |
Long-term debt (b) | | | 1,841 | | | | 2,398 | |
Long-term securitized vacation ownership debt | | | 151 | | | | 176 | |
Deferred income taxes | | | 35 | | | | 38 | |
Other liabilities | | | 2,274 | | | | 2,069 | |
Total liabilities | | | 6,709 | | | | 7,131 | |
Commitments and contingencies | | | | | | | | |
Stockholders’ equity: | | | | | | | | |
Common stock; $0.01 par value; authorized 1,000,000,000 shares; 170,603,937 and 172,694,299 shares outstanding at June 30, 2015 and December 31, 2014, respectively | | | 2 | | | | 2 | |
Additional paid-in capital | | | 74 | | | | 47 | |
Accumulated other comprehensive loss | | | (598 | ) | | | (508 | ) |
Retained earnings | | | 1,863 | | | | 1,984 | |
Total Starwood stockholders’ equity | | | 1,341 | | | | 1,525 | |
Noncontrolling interests | | | 3 | | | | 3 | |
Total equity | | | 1,344 | | | | 1,528 | |
Total liabilities and equity | | $ | 8,053 | | | $ | 8,659 | |
(a) | Includes restricted cash of $3 million and $3 million at June 30, 2015 and December 31, 2014, respectively. |
(b) | Excludes Starwood’s share of unconsolidated joint venture debt aggregating approximately $194 million and $200 million at June 30, 2015 and December 31, 2014, respectively. |
12
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Non-GAAP to GAAP Reconciliations – Historical Data
(In millions)
Three Months Ended June 30, | | | | | Six Months Ended June 30, | |
2015 | | | 2014 | | | % Variance | | | | | 2015 | | | 2014 | | | % Variance | |
| | | | | | | | | | | | Reconciliation of Net Income to EBITDA and Adjusted EBITDA | | | | | | | | | | | | |
$ | 136 | | | $ | 153 | | | | (11.1 | ) | | Net income | | $ | 235 | | | $ | 290 | | | | (19.0 | ) |
| 32 | | | | 27 | | | | 18.5 | | | Interest expense (a) | | | 67 | | | | 54 | | | | 24.1 | |
| 44 | | | | 73 | | | | (39.7 | ) | | Income tax (benefit) expense (b) | | | 96 | | | | 80 | | | | 20.0 | |
| 68 | | | | 69 | | | | (1.4 | ) | | Depreciation (c) | | | 136 | | | | 135 | | | | 0.7 | |
| 8 | | | | 8 | | | | — | | | Amortization (d) | | | 15 | | | | 16 | | | | (6.3 | ) |
| 288 | | | | 330 | | | | (12.7 | ) | | EBITDA | | | 549 | | | | 575 | | | | (4.5 | ) |
| — | | | | (3 | ) | | | 100.0 | | | (Gain) loss on asset dispositions and impairments, net | | | (14 | ) | | | 33 | | | n/m | |
| 23 | | | | (3 | ) | | n/m | | | Restructuring and other special charges (credits), net | | | 54 | | | | (3 | ) | | n/m | |
| — | | | | — | | | | — | | | Gain on sale of a unconsolidated joint venture hotel (e) | | | (4 | ) | | | — | | | n/m | |
$ | 311 | | | $ | 324 | | | | (4.0 | ) | | Adjusted EBITDA | | $ | 585 | | | $ | 605 | | | | (3.3 | ) |
(a) | Includes $4 million and $3 million of Starwood’s share of interest expense from unconsolidated joint ventures for the three months ended June 30, 2015 and 2014, respectively, and $7 million and $6 million for the six months ended June 30, 2015 and 2014, respectively. |
(b) | Includes $0 million of tax expense (benefit) recorded in discontinued operations for the three months ended June 30, 2015 and 2014, and $0 million and $(1) million for the six months ended June 30, 2015 and 2014, respectively. |
(c) | Includes $3 million and $6 million of Starwood’s share of depreciation expense from unconsolidated joint ventures for the three months ended June 30, 2015 and 2014, respectively, and $9 million and $12 million for the six months ended June 30, 2015 and 2014, respectively. |
(d) | Includes $0 million and $1 million of Starwood’s share of amortization expense from unconsolidated joint ventures for the three months ended June 30, 2015 and 2014, respectively, and $0 million and $1 million for the six months ended June 30, 2015 and 2014, respectively. |
(e) | The gain on sale is included in the equity earnings and gains from unconsolidated ventures, net line item in the statement of income. |
n/m = not meaningful
13
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Non-GAAP to GAAP Reconciliations – Same-Store Owned Hotels Worldwide
(In millions)
| | Three Months Ended June 30, 2015 | |
| | $ Change | | | % Variance | |
Revenue | | | | | | | | |
Revenue increase/(decrease) (GAAP) | | $ | (6 | ) | | | (2.0 | ) |
Impact of changes in foreign exchange rates | | | 29 | | | | 9.3 | |
Revenue increase/(decrease) in constant dollars | | $ | 23 | | | | 7.3 | |
Expense | | | | | | | | |
Expense increase/(decrease) (GAAP) | | $ | (7 | ) | | | (3.0 | ) |
Impact of changes in foreign exchange rates | | | 20 | | | | 8.6 | |
Expense increase/(decrease) in constant dollars | | $ | 13 | | | | 5.6 | |
Non-GAAP to GAAP Reconciliations – Same-Store Owned Hotels North America
(In millions)
| | Three Months Ended June 30, 2015 | |
| | $ Change | | | % Variance | |
Revenue | | | | | | | | |
Revenue increase/(decrease) (GAAP) | | $ | 7 | | | | 4.4 | |
Impact of changes in foreign exchange rates | | | 6 | | | | 3.8 | |
Revenue increase/(decrease) in constant dollars | | $ | 13 | | | | 8.2 | |
Expense | | | | | | | | |
Expense increase/(decrease) (GAAP) | | $ | 3 | | | | 2.5 | |
Impact of changes in foreign exchange rates | | | 4 | | | | 3.3 | |
Expense increase/(decrease) in constant dollars | | $ | 7 | | | | 5.8 | |
Non-GAAP to GAAP Reconciliations – Same-Store Owned Hotels International
(In millions)
| | Three Months Ended June 30, 2015 | |
| | $ Change | | | % Variance | |
Revenue | | | | | | | | |
Revenue increase/(decrease) (GAAP) | | $ | (13 | ) | | | (8.9 | ) |
Impact of changes in foreign exchange rates | | | 22 | | | | 15.2 | |
Revenue increase/(decrease) in constant dollars | | $ | 9 | | | | 6.3 | |
Expense | | | | | | | | |
Expense increase/(decrease) (GAAP) | | $ | (11 | ) | | | (9.5 | ) |
Impact of changes in foreign exchange rates | | | 17 | | | | 14.9 | |
Expense increase/(decrease) in constant dollars | | $ | 6 | | | | 5.4 | |
14
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Non-GAAP to GAAP Reconciliations – Future Performance
(In millions, except per share data)
| | | | Low Case | | | | |
Three Months Ended September 30, 2015 | | | | | Year Ended December 31, 2015 | |
$ | 118 | | | Net income | | $ | 480 | |
| 35 | | | Interest expense | | | 135 | |
| 55 | | | Income tax expense | | | 217 | |
| 77 | | | Depreciation and amortization | | | 307 | |
| 285 | | | EBITDA | | | 1,139 | |
| - | | | Gain on asset dispositions and impairments, net | | | (14 | ) |
| - | | | Gain on sale of a unconsolidated joint venture hotel | | | (4 | ) |
| - | | | Restructuring and other special charges, net | | | 54 | |
$ | 285 | | | Adjusted EBITDA | | $ | 1,175 | |
| | | | | | | | |
Three Months Ended September 30, 2015 | | | | | Year Ended December 31, 2015 | |
$ | 118 | | | Income from continuing operations before special items | | $ | 498 | |
$ | 0.69 | | | EPS before special items | | $ | 2.93 | |
| | | | Special Items | | | | |
| - | | | Restructuring and other special charges, net | | | (54 | ) |
| - | | | Gain on asset dispositions and impairments, net | | | 14 | |
| - | | | Gain on sale of a unconsolidated joint venture hotel | | | 4 | |
| - | | | Total special items – pre-tax | | | (36 | ) |
| - | | | Income tax benefit on special items | | | 13 | |
| - | | | Income tax benefit – other non-recurring items | | | 5 | |
| - | | | Total special items – after-tax | | | (18 | ) |
$ | 118 | | | Income from continuing operations | | $ | 480 | |
$ | 0.69 | | | EPS including special items | | $ | 2.82 | |
| | | | | | | | |
| | | | High Case | | | | |
Three Months Ended September 30, 2015 | | | | | Year Ended December 31, 2015 | |
$ | 124 | | | Net income | | $ | 497 | |
| 35 | | | Interest expense | | | 135 | |
| 59 | | | Income tax expense | | | 225 | |
| 77 | | | Depreciation and amortization | | | 307 | |
| 295 | | | EBITDA | | | 1,164 | |
| - | | | Gain on asset dispositions and impairments, net | | | (14 | ) |
| - | | | Gain on sale of a unconsolidated joint venture hotel | | | (4 | ) |
| - | | | Restructuring and other special charges, net | | | 54 | |
$ | 295 | | | Adjusted EBITDA | | $ | 1,200 | |
| | | | | | | | |
Three Months Ended September 30, 2015 | | | | | Year Ended December 31, 2015 | |
$ | 124 | | | Income from continuing operations before special items | | $ | 515 | |
$ | 0.73 | | | EPS before special items | | $ | 3.03 | |
| | | | Special Items | | | | |
| - | | | Restructuring and other special charges, net | | | (54 | ) |
| - | | | Gain on asset dispositions and impairments, net | | | 14 | |
| - | | | Gain on sale of a unconsolidated joint venture hotel | | | 4 | |
| - | | | Total special items – pre-tax | | | (36 | ) |
| - | | | Income tax benefit on special items | | | 13 | |
| - | | | Income tax benefit – other non-recurring items | | | 5 | |
| - | | | Total special items – after-tax | | | (18 | ) |
$ | 124 | | | Income from continuing operations | | $ | 497 | |
$ | 0.73 | | | EPS including special items | | $ | 2.93 | |
15
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Non-GAAP to GAAP Reconciliations – Same Store Owned Hotel Revenue and Expenses
(In millions)
Three Months Ended June 30, | | | | | Six Months Ended June 30, | |
2015 | | | 2014 | | | % Variance | | | Same-Store Owned Hotels Worldwide | | 2015 | | | 2014 | | | % Variance | |
| | | | | | | | | | | | Revenue | | | | | | | | | | | | |
$ | 302 | | | $ | 308 | | | | (2.0 | ) | | Same-Store Owned Hotels (a) | | $ | 547 | | | $ | 546 | | | | 0.2 | |
| 34 | | | | 83 | | | | (59.0 | ) | | Hotels Sold or Closed in 2015 and 2014 | | | 82 | | | | 179 | | | | (54.2 | ) |
| 15 | | | | 16 | | | | (6.3 | ) | | Hotels Without Comparable Results | | | 34 | | | | 40 | | | | (15.0 | ) |
| 5 | | | | 7 | | | | (28.6 | ) | | Other ancillary hotel operations | | | 9 | | | | 13 | | | | (30.8 | ) |
$ | 356 | | | $ | 414 | | | | (14.0 | ) | | Total Owned, Leased and Consolidated Joint Venture Hotels Revenue | | $ | 672 | | | $ | 778 | | | | (13.6 | ) |
| | | | | | | | | | | | Costs and Expenses | | | | | | | | | | | | |
$ | 232 | | | $ | 239 | | | | 3.0 | | | Same-Store Owned Hotels (a) | | $ | 447 | | | $ | 450 | | | | 0.6 | |
| 21 | | | | 57 | | | | 63.2 | | | Hotels Sold or Closed in 2015 and 2014 | | | 50 | | | | 124 | | | | 59.7 | |
| 8 | | | | 11 | | | | 27.3 | | | Hotels Without Comparable Results | | | 22 | | | | 28 | | | | 21.4 | |
| 4 | | | | 7 | | | | 42.9 | | | Other ancillary hotel operations | | | 8 | | | | 13 | | | | 38.5 | |
$ | 265 | | | $ | 314 | | | | 15.6 | | | Total Owned, Leased and Consolidated Joint Venture Hotels Costs and Expenses | | $ | 527 | | | $ | 615 | | | | 14.3 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Three Months Ended June 30, | | | | | Six Months Ended June 30, | |
2015 | | | 2014 | | | % Variance | | | Same-Store Owned Hotels North America | | 2015 | | | 2014 | | | % Variance | |
| | | | | | | | | | | | Revenue | | | | | | | | | | | | |
$ | 166 | | | $ | 159 | | | | 4.4 | | | Same-Store Owned Hotels (a) | | $ | 318 | | | $ | 303 | | | | 4.9 | |
| 30 | | | | 36 | | | | (16.7 | ) | | Hotels Sold or Closed in 2015 and 2014 | | | 74 | | | | 91 | | | | (18.7 | ) |
| 1 | | | | — | | | n/m | | | Hotels Without Comparable Results | | | 1 | | | | 1 | | | | — | |
| — | | | | — | | | | — | | | Other ancillary hotel operations | | | — | | | | — | | | | — | |
$ | 197 | | | $ | 195 | | | | 1.0 | | | Total Owned, Leased and Consolidated Joint Venture Hotels Revenue | | $ | 393 | | | $ | 395 | | | | (0.5 | ) |
| | | | | | | | | | | | Costs and Expenses | | | | | | | | | | | | |
$ | 132 | | | $ | 128 | | | | (2.5 | ) | | Same-Store Owned Hotels (a) | | $ | 261 | | | $ | 254 | | | | (3.1 | ) |
| 19 | | | | 27 | | | | 29.6 | | | Hotels Sold or Closed in 2015 and 2014 | | | 45 | | | | 62 | | | | 27.4 | |
| 1 | | | | 1 | | | | — | | | Hotels Without Comparable Results | | | 1 | | | | 1 | | | | — | |
| — | | | | — | | | | — | | | Other ancillary hotel operations | | | — | | | | — | | | | — | |
$ | 152 | | | $ | 156 | | | | 2.6 | | | Total Owned, Leased and Consolidated Joint Venture Hotels Costs and Expenses | | $ | 307 | | | $ | 317 | | | | 3.2 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Three Months Ended June 30, | | | | | Six Months Ended June 30 | |
2015 | | | 2014 | | | % Variance | | | Same-Store Owned Hotels International | | 2015 | | | 2014 | | | % Variance | |
| | | | | | | | | | | | Revenue | | | | | | | | | | | | |
$ | 136 | | | $ | 149 | | | | (8.9 | ) | | Same-Store Owned Hotels (a) | | $ | 229 | | | $ | 243 | | | | (5.7 | ) |
| 4 | | | | 47 | | | | (91.5 | ) | | Hotels Sold or Closed in 2015 and 2014 | | | 8 | | | | 88 | | | | (90.9 | ) |
| 14 | | | | 16 | | | | (12.5 | ) | | Hotels Without Comparable Results | | | 33 | | | | 39 | | | | (15.4 | ) |
| 5 | | | | 7 | | | | (28.6 | ) | | Other ancillary hotel operations | | | 9 | | | | 13 | | | | (30.8 | ) |
$ | 159 | | | $ | 219 | | | | (27.4 | ) | | Total Owned, Leased and Consolidated Joint Venture Hotels Revenue | | $ | 279 | | | $ | 383 | | | | (27.2 | ) |
| | | | | | | | | | | | Costs and Expenses | | | | | | | | | | | | |
$ | 100 | | | $ | 111 | | | | 9.5 | | | Same-Store Owned Hotels (a) | | $ | 186 | | | $ | 196 | | | | 5.4 | |
| 2 | | | | 30 | | | | 93.3 | | | Hotels Sold or Closed in 2015 and 2014 | | | 5 | | | | 62 | | | | 91.9 | |
| 7 | | | | 10 | | | | 30.0 | | | Hotels Without Comparable Results | | | 21 | | | | 27 | | | | 22.2 | |
| 4 | | | | 7 | | | | 42.9 | | | Other ancillary hotel operations | | | 8 | | | | 13 | | | | 38.5 | |
$ | 113 | | | $ | 158 | | | | 28.5 | | | Total Owned, Leased and Consolidated Joint Venture Hotels Costs and Expenses | | $ | 220 | | | $ | 298 | | | | 26.2 | |
(a) | Same-Store Owned Hotel results exclude 11 hotels sold or closed, two leased hotels converted to managed or franchised hotels and two hotels without comparable results for the three months ended June 30, 2015 and 12 hotels sold or closed, two leased hotels converted to managed or franchised hotels and three hotels without comparable results for the six months ended June 30, 2015. |
16
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Systemwide(1) Statistics - Same Store
For the Three Months Ended June 30,
UNAUDITED
| | Systemwide - Worldwide | | | Systemwide - North America | | | Systemwide - International | |
| | 2015 | | | 2014 | | | Var. USD | | | 2015 | | | 2014 | | | Var. USD | | | 2015 | | | 2014 | | | Var. USD | |
TOTAL HOTELS | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
REVPAR ($) | | | 124.87 | | | | 125.72 | | | | -0.7 | % | | | 140.96 | | | | 135.38 | | | | 4.1 | % | | | 107.83 | | | | 115.47 | | | | -6.6 | % |
ADR ($) | | | 172.88 | | | | 177.49 | | | | -2.6 | % | | | 180.04 | | | | 174.70 | | | | 3.1 | % | | | 163.86 | | | | 181.07 | | | | -9.5 | % |
Occupancy (%) | | | 72.2 | % | | | 70.8 | % | | | 1.4 | | | | 78.3 | % | | | 77.5 | % | | | 0.8 | | | | 65.8 | % | | | 63.8 | % | | | 2.0 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
SHERATON | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
REVPAR ($) | | | 104.16 | | | | 105.77 | | | | -1.5 | % | | | 120.35 | | | | 115.90 | | | | 3.8 | % | | | 87.57 | | | | 95.38 | | | | -8.2 | % |
ADR ($) | | | 148.27 | | | | 152.76 | | | | -2.9 | % | | | 157.43 | | | | 152.79 | | | | 3.0 | % | | | 137.03 | | | | 152.72 | | | | -10.3 | % |
Occupancy (%) | | | 70.3 | % | | | 69.2 | % | | | 1.1 | | | | 76.4 | % | | | 75.9 | % | | | 0.5 | | | | 63.9 | % | | | 62.5 | % | | | 1.4 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
WESTIN | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
REVPAR ($) | | | 145.90 | | | | 143.60 | | | | 1.6 | % | | | 153.07 | | | | 146.63 | | | | 4.4 | % | | | 132.24 | | | | 137.83 | | | | -4.1 | % |
ADR ($) | | | 189.48 | | | | 190.37 | | | | -0.5 | % | | | 191.42 | | | | 185.79 | | | | 3.0 | % | | | 185.34 | | | | 200.35 | | | | -7.5 | % |
Occupancy (%) | | | 77.0 | % | | | 75.4 | % | | | 1.6 | | | | 80.0 | % | | | 78.9 | % | | | 1.1 | | | | 71.3 | % | | | 68.8 | % | | | 2.5 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
ST. REGIS/LUXURY COLLECTION | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
REVPAR ($) | | | 201.75 | | | | 207.46 | | | | -2.8 | % | | | 278.86 | | | | 267.89 | | | | 4.1 | % | | | 174.91 | | | | 186.32 | | | | -6.1 | % |
ADR ($) | | | 301.66 | | | | 318.60 | | | | -5.3 | % | | | 383.46 | | | | 362.66 | | | | 5.7 | % | | | 269.73 | | | | 300.24 | | | | -10.2 | % |
Occupancy (%) | | | 66.9 | % | | | 65.1 | % | | | 1.8 | | | | 72.7 | % | | | 73.9 | % | | | -1.2 | | | | 64.8 | % | | | 62.1 | % | | | 2.7 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
LE MERIDIEN | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
REVPAR ($) | | | 131.30 | | | | 140.44 | | | | -6.5 | % | | | 228.20 | | | | 220.26 | | | | 3.6 | % | | | 114.45 | | | | 126.56 | | | | -9.6 | % |
ADR ($) | | | 186.41 | | | | 201.65 | | | | -7.6 | % | | | 267.71 | | | | 259.58 | | | | 3.1 | % | | | 168.66 | | | | 188.90 | | | | -10.7 | % |
Occupancy (%) | | | 70.4 | % | | | 69.6 | % | | | 0.8 | | | | 85.2 | % | | | 84.9 | % | | | 0.3 | | | | 67.9 | % | | | 67.0 | % | | | 0.9 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
W | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
REVPAR ($) | | | 241.46 | | | | 240.23 | | | | 0.5 | % | | | 251.57 | | | | 241.11 | | | | 4.3 | % | | | 223.37 | | | | 238.66 | | | | -6.4 | % |
ADR ($) | | | 299.30 | | | | 302.42 | | | | -1.0 | % | | | 296.26 | | | | 289.06 | | | | 2.5 | % | | | 305.61 | | | | 329.86 | | | | -7.4 | % |
Occupancy (%) | | | 80.7 | % | | | 79.4 | % | | | 1.3 | | | | 84.9 | % | | | 83.4 | % | | | 1.5 | | | | 73.1 | % | | | 72.4 | % | | | 0.7 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
FOUR POINTS | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
REVPAR ($) | | | 77.37 | | | | 77.82 | | | | -0.6 | % | | | 90.02 | | | | 89.34 | | | | 0.8 | % | | | 62.90 | | | | 64.63 | | | | -2.7 | % |
ADR ($) | | | 110.70 | | | | 114.45 | | | | -3.3 | % | | | 117.76 | | | | 118.33 | | | | -0.5 | % | | | 100.81 | | | | 108.79 | | | | -7.3 | % |
Occupancy (%) | | | 69.9 | % | | | 68.0 | % | | | 1.9 | | | | 76.4 | % | | | 75.5 | % | | | 0.9 | | | | 62.4 | % | | | 59.4 | % | | | 3.0 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
ALOFT | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
REVPAR ($) | | | 86.92 | | | | 80.13 | | | | 8.5 | % | | | 110.66 | | | | 101.71 | | | | 8.8 | % | | | 48.18 | | | | 44.94 | | | | 7.2 | % |
ADR ($) | | | 117.47 | | | | 114.67 | | | | 2.4 | % | | | 137.11 | | | | 129.02 | | | | 6.3 | % | | | 76.44 | | | | 81.30 | | | | -6.0 | % |
Occupancy (%) | | | 74.0 | % | | | 69.9 | % | | | 4.1 | | | | 80.7 | % | | | 78.8 | % | | | 1.9 | | | | 63.0 | % | | | 55.3 | % | | | 7.7 | |
(1) | Includes same-store Owned, managed and franchised hotels |
17
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Worldwide Hotel Results - Same Store
For the Three Months Ended June 30,
UNAUDITED
| | Systemwide (1) | | | Company Operated (2) | |
| | 2015 | | | 2014 | | | Var. USD | | | 2015 | | | 2014 | | | Var. USD | |
TOTAL WORLDWIDE | | | | | | | | | | | | | | | | | | | | | | | | |
REVPAR ($) | | | 124.87 | | | | 125.72 | | | | -0.7 | % | | | 137.42 | | | | 140.00 | | | | -1.8 | % |
ADR ($) | | | 172.88 | | | | 177.49 | | | | -2.6 | % | | | 193.34 | | | | 201.23 | | | | -3.9 | % |
Occupancy (%) | | | 72.2 | % | | | 70.8 | % | | | 1.4 | | | | 71.1 | % | | | 69.6 | % | | | 1.5 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
AMERICAS | | | | | | | | | | | | | | | | | | | | | | | | |
REVPAR ($) | | | 136.22 | | | | 131.44 | | | | 3.6 | % | | | 172.68 | | | | 166.99 | | | | 3.4 | % |
ADR ($) | | | 178.07 | | | | 174.05 | | | | 2.3 | % | | | 222.99 | | | | 217.81 | | | | 2.4 | % |
Occupancy (%) | | | 76.5 | % | | | 75.5 | % | | | 1.0 | | | | 77.4 | % | | | 76.7 | % | | | 0.7 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
North America | | | | | | | | | | | | | | | | | | | | | | | | |
REVPAR ($) | | | 140.96 | | | | 135.38 | | | | 4.1 | % | | | 180.98 | | | | 174.29 | | | | 3.8 | % |
ADR ($) | | | 180.04 | | | | 174.70 | | | | 3.1 | % | | | 227.07 | | | | 220.47 | | | | 3.0 | % |
Occupancy (%) | | | 78.3 | % | | | 77.5 | % | | | 0.8 | | | | 79.7 | % | | | 79.1 | % | | | 0.6 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Latin America | | | | | | | | | | | | | | | | | | | | | | | | |
REVPAR ($) | | | 90.84 | | | | 93.86 | | | | -3.2 | % | | | 107.40 | | | | 109.61 | | | | -2.0 | % |
ADR ($) | | | 153.19 | | | | 165.46 | | | | -7.4 | % | | | 180.17 | | | | 189.27 | | | | -4.8 | % |
Occupancy (%) | | | 59.3 | % | | | 56.7 | % | | | 2.6 | | | | 59.6 | % | | | 57.9 | % | | | 1.7 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
ASIA PACIFIC | | | | | | | | | | | | | | | | | | | | | | | | |
REVPAR ($) | | | 92.22 | | | | 93.18 | | | | -1.0 | % | | | 93.94 | | | | 94.11 | | | | -0.2 | % |
ADR ($) | | | 143.27 | | | | 151.07 | | | | -5.2 | % | | | 145.30 | | | | 152.44 | | | | -4.7 | % |
Occupancy (%) | | | 64.4 | % | | | 61.7 | % | | | 2.7 | | | | 64.7 | % | | | 61.7 | % | | | 3.0 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Greater China | | | | | | | | | | | | | | | | | | | | | | | | |
REVPAR ($) | | | 86.07 | | | | 86.02 | | | | 0.1 | % | | | 85.44 | | | | 85.06 | | | | 0.4 | % |
ADR ($) | | | 139.35 | | | | 144.84 | | | | -3.8 | % | | | 137.82 | | | | 143.01 | | | | -3.6 | % |
Occupancy (%) | | | 61.8 | % | | | 59.4 | % | | | 2.4 | | | | 62.0 | % | | | 59.5 | % | | | 2.5 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Rest of Asia Pacific | | | | | | | | | | | | | | | | | | | | | | | | |
REVPAR ($) | | | 101.42 | | | | 103.87 | | | | -2.4 | % | | | 113.34 | | | | 114.73 | | | | -1.2 | % |
ADR ($) | | | 148.58 | | | | 159.55 | | | | -6.9 | % | | | 160.26 | | | | 171.57 | | | | -6.6 | % |
Occupancy (%) | | | 68.3 | % | | | 65.1 | % | | | 3.2 | | | | 70.7 | % | | | 66.9 | % | | | 3.8 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
EAME | | | | | | | | | | | | | | | | | | | | | | | | |
REVPAR ($) | | | 136.20 | | | | 155.31 | | | | -12.3 | % | | | 143.72 | | | | 163.59 | | | | -12.1 | % |
ADR ($) | | | 194.71 | | | | 224.86 | | | | -13.4 | % | | | 205.01 | | | | 235.44 | | | | -12.9 | % |
Occupancy (%) | | | 69.9 | % | | | 69.1 | % | | | 0.8 | | | | 70.1 | % | | | 69.5 | % | | | 0.6 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Europe | | | | | | | | | | | | | | | | | | | | | | | | |
REVPAR ($) | | | 147.86 | | | | 171.87 | | | | -14.0 | % | | | 164.41 | | | | 190.88 | | | | -13.9 | % |
ADR ($) | | | 199.78 | | | | 239.00 | | | | -16.4 | % | | | 216.90 | | | | 259.59 | | | | -16.4 | % |
Occupancy (%) | | | 74.0 | % | | | 71.9 | % | | | 2.1 | | | | 75.8 | % | | | 73.5 | % | | | 2.3 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Africa & Middle East | | | | | | | | | | | | | | | | | | | | | | | | |
REVPAR ($) | | | 114.93 | | | | 125.19 | | | | -8.2 | % | | | 115.16 | | | | 126.06 | | | | -8.6 | % |
ADR ($) | | | 183.78 | | | | 195.92 | | | | -6.2 | % | | | 185.03 | | | | 197.22 | | | | -6.2 | % |
Occupancy (%) | | | 62.5 | % | | | 63.9 | % | | | -1.4 | | | | 62.2 | % | | | 63.9 | % | | | -1.7 | |
(1) | Includes same-store Owned, managed, and franchised hotels |
(2) | Includes same-store Owned and managed hotels |
18
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Owned Hotel Results - Same Store
For the Three Months Ended June 30,
UNAUDITED
| | Worldwide | | | North America | | | International | |
| | 2015 | | | 2014 | | | Var. USD | | | 2015 | | | 2014 | | | Var. USD | | | 2015 | | | 2014 | | | Var. USD | |
TOTAL HOTELS | | 31 Hotels | | | 11 Hotels | | | 20 Hotels | |
REVPAR ($) | | | 185.60 | | | | 190.53 | | | | -2.6 | % | | | 189.85 | | | | 181.15 | | | | 4.8 | % | | | 180.69 | | | | 201.38 | | | | -10.3 | % |
ADR ($) | | | 239.13 | | | | 252.24 | | | | -5.2 | % | | | 235.78 | | | | 229.60 | | | | 2.7 | % | | | 243.33 | | | | 281.04 | | | | -13.4 | % |
Occupancy (%) | | | 77.6 | % | | | 75.5 | % | | | 2.1 | | | | 80.5 | % | | | 78.9 | % | | | 1.6 | | | | 74.3 | % | | | 71.7 | % | | | 2.6 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Revenue* | | | 301,993 | | 0 | | 308,302 | | | | -2.0 | % | | | 165,989 | | | | 158,962 | | | | 4.4 | % | | | 136,003 | | | | 149,340 | | | | -8.9 | % |
Total Expenses* | | | 232,053 | | | | 239,351 | | | | 3.0 | % | | | 131,676 | | | | 128,469 | | | | -2.5 | % | | | 100,377 | | | | 110,882 | | | | 9.5 | % |
* | Revenues and Expenses above are represented in '000s |
19
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Management Fees, Franchise Fees and Other Income
For the Three Months Ended June 30,
UNAUDITED ($ millions)
| | Worldwide | |
| | 2015 | | | 2014 | | | Variance | | | % Variance | |
Management Fees | | | | | | | | | | | | | | | | |
Base Fees | | | 93 | | | | 98 | | | | (5 | ) | | | (5.1 | )% |
Incentive Fees | | | 46 | | | | 48 | | | | (2 | ) | | | (4.2 | )% |
Total Management Fees | | | 139 | | | | 146 | | | | (7 | ) | | | (4.8 | )% |
| | | | | | | | | | | | | | | | |
Franchise Fees | | | 67 | | | | 62 | | | | 5 | | | | 8.1 | % |
| | | | | | | | | | | | | | | | |
Total Management and Franchise Fees (Core Fees) | | | 206 | | | | 208 | | | | (2 | ) | | | (1.0 | )% |
| | | | | | | | | | | | | | | | |
Other Management and Franchise Revenues (1) | | | 46 | | | | 48 | | | | (2 | ) | | | (4.2 | )% |
| | | | | | | | | | | | | | | | |
Total Management and Franchise Revenues | | | 252 | | | | 256 | | | | (4 | ) | | | (1.6 | )% |
| | | | | | | | | | | | | | | | |
Other | | | 4 | | | | 4 | | | | - | | | | - | |
| | | | | | | | | | | | | | | | |
Management Fees, Franchise Fees and Other Income | | | 256 | | | | 260 | | | | (4 | ) | | | (1.5 | )% |
(1) | Other Management and Franchise Revenues includes the amortization of the deferred gains of approximately $22 million in 2015 and 2014 resulting from the sales of hotels subject to long-term management contracts and termination fees. |
20
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Vacation Ownership and Residential Revenues and Expenses
For the Three Months Ended June 30,
UNAUDITED ($ millions)
| | 2015 | | | 2014 | | | $ Variance | | | % Variance | |
Originated Sales Revenues (1) — Vacation Ownership Sales | | | 79 | | | | 79 | | | | — | | | | — | |
Other Sales and Services Revenues (2) | | | 91 | | | | 85 | | | | 6 | | | | 7.1 | % |
Deferred Revenues — Percentage of Completion | | | 3 | | | | (2 | ) | | | 5 | | | n/m | |
Deferred Revenues — Other (3) | | | (4 | ) | | | (2 | ) | | | (2 | ) | | | (100.0 | %) |
Vacation Ownership Sales and Services Revenues | | | 169 | | | | 160 | | | | 9 | | | | 5.6 | % |
Residential Sales and Services Revenues (4) | | | 1 | | | | 11 | | | | (10 | ) | | | (90.9 | %) |
Total Vacation Ownership & Residential Sales and Services Revenues | | | 170 | | | | 171 | | | | (1 | ) | | | (0.6 | %) |
| | | | | | | | | | | | | | | | |
Originated Sales Expenses (5) — Vacation Ownership Sales | | | 57 | | | | 55 | | | | (2 | ) | | | (3.6 | %) |
Other Expenses (6) | | | 66 | | | | 64 | | | | (2 | ) | | | (3.1 | %) |
Deferred Expenses — Percentage of Completion | | | 1 | | | | (2 | ) | | | (3 | ) | | n/m | |
Deferred Expenses — Other | | | 2 | | | | 2 | | | | — | | | | — | |
Vacation Ownership Expenses | | | 126 | | | | 119 | | | | (7 | ) | | | (5.9 | %) |
Residential Expenses (4) | | | — | | | | 6 | | | | 6 | | | | 100.0 | % |
Total Vacation Ownership & Residential Expenses | | | 126 | | | | 125 | | | | (1 | ) | | | (0.8 | %) |
(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 2015 and 2014, includes $0 and $7 million of revenues and $0 and $6 million expenses associated with the St. Regis Bal Harbour residential project, respectively. |
(5) | Timeshare cost of sales and sales and marketing expenses before deferrals of sales expenses for U.S. GAAP reporting purposes |
(6) | Includes resort, general and administrative, and other miscellaneous expenses |
Note: Deferred revenue is calculated based on the Percentage of Completion ("POC") of the project. Deferred expenses, also based on POC, include product costs and direct sales and marketing costs only. Indirect sales and marketing costs are not deferred per ASC 978-720-25 and ASC 978-340-25.
n/m = not meaningful
21
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Systemwide(1) Statistics - Same Store
For the Six Months Ended June 30,
UNAUDITED
| Systemwide - Worldwide | | | Systemwide - North America | | | Systemwide - International | | |
| 2015 | | | 2014 | | | Var. USD | | | 2015 | | | 2014 | | | Var. USD | | | 2015 | | | 2014 | | | Var. USD | | |
TOTAL HOTELS | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
REVPAR ($) | | 120.63 | | | | 120.12 | | | | 0.4 | % | | | 133.14 | | | | 126.91 | | | | 4.9 | % | | | 107.44 | | | | 112.95 | | | | -4.9 | % | |
ADR ($) | | 172.84 | | | | 176.40 | | | | -2.0 | % | | | 177.52 | | | | 172.23 | | | | 3.1 | % | | | 167.09 | | | | 181.60 | | | | -8.0 | % | |
Occupancy (%) | | 69.8 | % | | | 68.1 | % | | | 1.7 | | | | 75.0 | % | | | 73.7 | % | | | 1.3 | | | | 64.3 | % | | | 62.2 | % | | | 2.1 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
SHERATON | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
REVPAR ($) | | 100.36 | | | | 101.38 | | | | -1.0 | % | | | 112.41 | | | | 107.82 | | | | 4.3 | % | | | 88.18 | | | | 94.87 | | | | -7.1 | % | |
ADR ($) | | 147.94 | | | | 151.95 | | | | -2.6 | % | | | 153.72 | | | | 149.38 | | | | 2.9 | % | | | 141.10 | | | | 155.02 | | | | -9.0 | % | |
Occupancy (%) | | 67.8 | % | | | 66.7 | % | | | 1.1 | | | | 73.1 | % | | | 72.2 | % | | | 0.9 | | | | 62.5 | % | | | 61.2 | % | | | 1.3 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
WESTIN | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
REVPAR ($) | | 139.69 | | | | 135.98 | | | | 2.7 | % | | | 144.16 | | | | 136.87 | | | | 5.3 | % | | | 131.16 | | | | 134.27 | | | | -2.3 | % | |
ADR ($) | | 187.42 | | | | 187.41 | | | | 0.0 | % | | | 188.24 | | | | 182.54 | | | | 3.1 | % | | | 185.72 | | | | 197.67 | | | | -6.0 | % | |
Occupancy (%) | | 74.5 | % | | | 72.6 | % | | | 1.9 | | | | 76.6 | % | | | 75.0 | % | | | 1.6 | | | | 70.6 | % | | | 67.9 | % | | | 2.7 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
ST. REGIS/LUXURY COLLECTION | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
REVPAR ($) | | 205.48 | | | | 206.55 | | | | -0.5 | % | | | 296.05 | | | | 281.01 | | | | 5.4 | % | | | 172.53 | | | | 179.38 | | | | -3.8 | % | |
ADR ($) | | 310.68 | | | | 322.38 | | | | -3.6 | % | | | 401.26 | | | | 382.48 | | | | 4.9 | % | | | 272.31 | | | | 295.81 | | | | -7.9 | % | |
Occupancy (%) | | 66.1 | % | | | 64.1 | % | | | 2.0 | | | | 73.8 | % | | | 73.5 | % | | | 0.3 | | | | 63.4 | % | | | 60.6 | % | | | 2.8 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
LE MERIDIEN | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
REVPAR ($) | | 123.77 | | | | 130.39 | | | | -5.1 | % | | | 200.15 | | | | 194.20 | | | | 3.1 | % | | | 111.32 | | | | 119.99 | | | | -7.2 | % | |
ADR ($) | | 185.01 | | | | 198.57 | | | | -6.8 | % | | | 247.62 | | | | 243.71 | | | | 1.6 | % | | | 172.25 | | | | 189.32 | | | | -9.0 | % | |
Occupancy (%) | | 66.9 | % | | | 65.7 | % | | | 1.2 | | | | 80.8 | % | | | 79.7 | % | | | 1.1 | | | | 64.6 | % | | | 63.4 | % | | | 1.2 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
W | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
REVPAR ($) | | 238.10 | | | | 233.53 | | | | 2.0 | % | | | 243.75 | | | | 232.20 | | | | 5.0 | % | | | 228.71 | | | | 235.73 | | | | -3.0 | % | |
ADR ($) | | 301.00 | | | | 303.75 | | | | -0.9 | % | | | 296.89 | | | | 288.67 | | | | 2.8 | % | | | 308.56 | | | | 332.13 | | | | -7.1 | % | |
Occupancy (%) | | 79.1 | % | | | 76.9 | % | | | 2.2 | | | | 82.1 | % | | | 80.4 | % | | | 1.7 | | | | 74.1 | % | | | 71.0 | % | | | 3.1 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
FOUR POINTS | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
REVPAR ($) | | 74.46 | | | | 73.87 | | | | 0.8 | % | | | 84.11 | | | | 81.53 | | | | 3.2 | % | | | 63.48 | | | | 65.16 | | | | -2.6 | % | |
ADR ($) | | 111.52 | | | | 114.30 | | | | -2.4 | % | | | 116.16 | | | | 115.22 | | | | 0.8 | % | | | 105.19 | | | | 113.02 | | | | -6.9 | % | |
Occupancy (%) | | 66.8 | % | | | 64.6 | % | | | 2.2 | | | | 72.4 | % | | | 70.8 | % | | | 1.6 | | | | 60.3 | % | | | 57.7 | % | | | 2.6 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
ALOFT | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
REVPAR ($) | | 83.25 | | | | 75.18 | | | | 10.7 | % | | | 103.66 | | | | 93.89 | | | | 10.4 | % | | | 49.55 | | | | 44.31 | | | | 11.8 | % | |
ADR ($) | | 116.85 | | | | 113.00 | | | | 3.4 | % | | | 134.75 | | | | 125.63 | | | | 7.3 | % | | | 80.11 | | | | 83.59 | | | | -4.2 | % | |
Occupancy (%) | | 71.2 | % | | | 66.5 | % | | | 4.7 | | | | 76.9 | % | | | 74.7 | % | | | 2.2 | | | | 61.9 | % | | | 53.0 | % | | | 8.9 | | |
(1) | Includes same-store Owned, managed and franchised hotels
|
22
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Worldwide Hotel Results - Same Store
For the Six Months Ended June 30,
UNAUDITED
| Systemwide (1) | | | Company Operated (2) | |
| 2015 | | | 2014 | | | Var. USD | | | 2015 | | | 2014 | | | Var. USD | |
TOTAL WORLDWIDE | | | | | | | | | | | | | | | | | | | | | | | |
REVPAR ($) | | 120.63 | | | | 120.12 | | | | 0.4 | % | | | 134.37 | | | | 135.11 | | | | -0.5 | % |
ADR ($) | | 172.84 | | | | 176.40 | | | | -2.0 | % | | | 194.47 | | | | 200.84 | | | | -3.2 | % |
Occupancy (%) | | 69.8 | % | | | 68.1 | % | | | 1.7 | | | | 69.1 | % | | | 67.3 | % | | | 1.8 | |
| | | | | | | | | | | | | | | | | | | | | | | |
AMERICAS | | | | | | | | | | | | | | | | | | | | | | | |
REVPAR ($) | | 130.29 | | | | 124.54 | | | | 4.6 | % | | | 166.95 | | | | 159.99 | | | | 4.4 | % |
ADR ($) | | 176.63 | | | | 172.26 | | | | 2.5 | % | | | 221.58 | | | | 216.40 | | | | 2.4 | % |
Occupancy (%) | | 73.8 | % | | | 72.3 | % | | | 1.5 | | | | 75.3 | % | | | 73.9 | % | | | 1.4 | |
| | | | | | | | | | | | | | | | | | | | | | | |
North America | | | | | | | | | | | | | | | | | | | | | | | |
REVPAR ($) | | 133.14 | | | | 126.91 | | | | 4.9 | % | | | 172.59 | | | | 165.22 | | | | 4.5 | % |
ADR ($) | | 177.52 | | | | 172.23 | | | | 3.1 | % | | | 224.39 | | | | 218.50 | | | | 2.7 | % |
Occupancy (%) | | 75.0 | % | | | 73.7 | % | | | 1.3 | | | | 76.9 | % | | | 75.6 | % | | | 1.3 | |
| | | | | | | | | | | | | | | | | | | | | | | |
Latin America | | | | | | | | | | | | | | | | | | | | | | | |
REVPAR ($) | | 103.17 | | | | 101.92 | | | | 1.2 | % | | | 122.79 | | | | 119.00 | | | | 3.2 | % |
ADR ($) | | 166.39 | | | | 172.65 | | | | -3.6 | % | | | 194.77 | | | | 195.95 | | | | -0.6 | % |
Occupancy (%) | | 62.0 | % | | | 59.0 | % | | | 3.0 | | | | 63.0 | % | | | 60.7 | % | | | 2.3 | |
| | | | | | | | | | | | | | | | | | | | | | | |
ASIA PACIFIC | | | | | | | | | | | | | | | | | | | | | | | |
REVPAR ($) | | 95.07 | | | | 96.05 | | | | -1.0 | % | | | 96.94 | | | | 97.25 | | | | -0.3 | % |
ADR ($) | | 149.03 | | | | 156.79 | | | | -4.9 | % | | | 152.03 | | | | 159.43 | | | | -4.6 | % |
Occupancy (%) | | 63.8 | % | | | 61.3 | % | | | 2.5 | | | | 63.8 | % | | | 61.0 | % | | | 2.8 | |
| | | | | | | | | | | | | | | | | | | | | | | |
Greater China | | | | | | | | | | | | | | | | | | | | | | | |
REVPAR ($) | | 86.35 | | | | 87.29 | | | | -1.1 | % | | | 85.64 | | | | 86.35 | | | | -0.8 | % |
ADR ($) | | 143.88 | | | | 151.42 | | | | -5.0 | % | | | 142.42 | | | | 149.82 | | | | -4.9 | % |
Occupancy (%) | | 60.0 | % | | | 57.6 | % | | | 2.4 | | | | 60.1 | % | | | 57.6 | % | | | 2.5 | |
| | | | | | | | | | | | | | | | | | | | | | | |
Rest of Asia Pacific | | | | | | | | | | | | | | | | | | | | | | | |
REVPAR ($) | | 108.12 | | | | 109.16 | | | | -1.0 | % | | | 123.26 | | | | 122.62 | | | | 0.5 | % |
ADR ($) | | 155.71 | | | | 163.74 | | | | -4.9 | % | | | 170.64 | | | | 178.16 | | | | -4.2 | % |
Occupancy (%) | | 69.4 | % | | | 66.7 | % | | | 2.7 | | | | 72.2 | % | | | 68.8 | % | | | 3.4 | |
| | | | | | | | | | | | | | | | | | | | | | | |
EAME | | | | | | | | | | | | | | | | | | | | | | | |
REVPAR ($) | | 127.38 | | | | 141.86 | | | | -10.2 | % | | | 135.92 | | | | 150.30 | | | | -9.6 | % |
ADR ($) | | 193.63 | | | | 219.59 | | | | -11.8 | % | | | 204.05 | | | | 229.44 | | | | -11.1 | % |
Occupancy (%) | | 65.8 | % | | | 64.6 | % | | | 1.2 | | | | 66.6 | % | | | 65.5 | % | | | 1.1 | |
| | | | | | | | | | | | | | | | | | | | | | | |
Europe | | | | | | | | | | | | | | | | | | | | | | | |
REVPAR ($) | | 126.64 | | | | 145.01 | | | | -12.7 | % | | | 140.20 | | | | 159.45 | | | | -12.1 | % |
ADR ($) | | 188.23 | | | | 223.53 | | | | -15.8 | % | | | 202.46 | | | | 239.73 | | | | -15.5 | % |
Occupancy (%) | | 67.3 | % | | | 64.9 | % | | | 2.4 | | | | 69.2 | % | | | 66.5 | % | | | 2.7 | |
| | | | | | | | | | | | | | | | | | | | | | | |
Africa & Middle East | | | | | | | | | | | | | | | | | | | | | | | |
REVPAR ($) | | 128.81 | | | | 135.83 | | | | -5.2 | % | | | 129.72 | | | | 137.10 | | | | -5.4 | % |
ADR ($) | | 204.68 | | | | 211.95 | | | | -3.4 | % | | | 206.58 | | | | 214.05 | | | | -3.5 | % |
Occupancy (%) | | 62.9 | % | | | 64.1 | % | | | -1.2 | | | | 62.8 | % | | | 64.1 | % | | | -1.3 | |
(1) | Includes same-store Owned, managed, and franchised hotels |
(2) | Includes same-store Owned and managed hotels |
23
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Owned Hotel Results - Same Store
For the Six Months Ended June 30,
UNAUDITED
| | Worldwide | | | North America | | | International | |
| | 2015 | | | 2014 | | | Var. USD | | | 2015 | | | 2014 | | | Var. USD | | | 2015 | | | 2014 | | | Var. USD | |
TOTAL HOTELS | | 30 Hotels | | | 11 Hotels | | | 19 Hotels | |
REVPAR ($) | | | 170.04 | | | | 170.88 | | | | -0.5 | % | | | 180.22 | | | | 172.72 | | | | 4.3 | % | | | 157.76 | | | | 168.67 | | | | -6.5 | % |
ADR ($) | | | 228.42 | | | | 238.49 | | | | -4.2 | % | | | 233.21 | | | | 229.89 | | | | 1.4 | % | | | 222.13 | | | | 250.03 | | | | -11.2 | % |
Occupancy (%) | | | 74.4 | % | | | 71.7 | % | | | 2.7 | | | | 77.3 | % | | | 75.1 | % | | | 2.2 | | | | 71.0 | % | | | 67.5 | % | | | 3.5 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Revenue* | | | 547,083 | | 0 | | 545,847 | | | | 0.2 | % | | | 317,983 | | | | 303,019 | | | | 4.9 | % | | | 229,100 | | | | 242,828 | | | | -5.7 | % |
Total Expenses* | | | 447,373 | | | | 449,947 | | | | 0.6 | % | | | 261,633 | | | | 253,707 | | | | -3.1 | % | | | 185,740 | | | | 196,240 | | | | 5.4 | % |
* | Revenues and Expenses above are represented in '000s |
24
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Management Fees, Franchise Fees and Other Income
For the Six Months Ended June 30,
UNAUDITED ($ millions)
| | Worldwide | |
| | 2015 | | | 2014 | | | Variance | | | % Variance | |
Management Fees | | | | | | | | | | | | | | | | |
Base Fees | | | 178 | | | | 184 | | | | (6 | ) | | | (3.3 | )% |
Incentive Fees | | | 94 | | | | 97 | | | | (3 | ) | | | (3.1 | )% |
Total Management Fees | | | 272 | | | | 281 | | | | (9 | ) | | | (3.2 | )% |
| | | | | | | | | | | | | | | | |
Franchise Fees | | | 125 | | | | 115 | | | | 10 | | | | 8.7 | % |
Total Management and Franchise Fees (Core Fees) | | | 397 | | | | 396 | | | | 1 | | | | 0.3 | % |
| | | | | | | | | | | | | | | | |
Other Management and Franchise Revenues (1) | | | 91 | | | | 101 | | | | (10 | ) | | | (9.9 | )% |
Total Management and Franchise Revenues | | | 488 | | | | 497 | | | | (9 | ) | | | (1.8 | )% |
| | | | | | | | | | | | | | | | |
Other | | | 8 | | | | 11 | | | | (3 | ) | | | (27.3 | )% |
Management Fees, Franchise Fees and Other Income | | | 496 | | | | 508 | | | | (12 | ) | | | (2.4 | )% |
(1) | Other Management and Franchise Revenues includes the amortization of the deferred gains of approximately $44 million in 2015 and $43 million in 2014 resulting from the sales of hotels subject to long-term management contracts and termination fees. |
25
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Vacation Ownership and Residential Revenues and Expenses
For the Six Months Ended June 30,
UNAUDITED ($ millions)
| | 2015 | | | 2014 | | | $ Variance | | | % Variance | |
Originated Sales Revenues (1) – Vacation Ownership Sales | | | 162 | | | | 163 | | | | (1 | ) | | | (0.6 | %) |
Other Sales and Services Revenues (2) | | | 191 | | | | 172 | | | | 19 | | | | 11.0 | % |
Deferred Revenues – Percentage of Completion | | | 4 | | | | (16 | ) | | | 20 | | | n/m | |
Deferred Revenues – Other (3) | | | (2 | ) | | | — | | | | (2 | ) | | n/m | |
Vacation Ownership Sales and Services Revenues | | | 355 | | | | 319 | | | | 36 | | | | 11.3 | % |
Residential Sales and Services Revenues (4) | | | 2 | | | | 26 | | | | (24 | ) | | | (92.3 | %) |
Total Vacation Ownership and Residential Sales and Services Revenues | | | 357 | | | | 345 | | | | 12 | | | | 3.5 | % |
| | | | | | | | | | | | | | | | |
Originated Sales Expenses (5) – Vacation Ownership Sales | | | 121 | | | | 121 | | | | — | | | | — | |
Other Expenses (6) | | | 135 | | | | 128 | | | | (7 | ) | | | (5.5 | %) |
Deferred Expenses – Percentage of Completion | | | 2 | | | | (10 | ) | | | (12 | ) | | n/m | |
Deferred Expenses – Other | | | 5 | | | | 5 | | | | — | | | | — | |
Vacation Ownership Expenses | | | 263 | | | | 244 | | | | (19 | ) | | | (7.8 | %) |
Residential Expenses (4) | | | — | | | | 9 | | | | 9 | | | | 100.0 | % |
Total Vacation Ownership and Residential Expenses | | | 263 | | | | 253 | | | | (10 | ) | | | (4.0 | %) |
(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 2015 and 2014, includes $0 and $20 million of revenues and $0 and $9 million expenses associated with the St. Regis Bal Harbour residential project, respectively. |
(5) | Timeshare cost of sales and sales and marketing expenses before deferrals of sales expenses for U.S. GAAP reporting purposes |
(6) | Includes resort, general and administrative, and other miscellaneous expenses |
Note: Deferred revenue is calculated based on the Percentage of Completion ("POC") of the project. Deferred expenses, also based on POC, include product costs and direct sales and marketing costs only. Indirect sales and marketing costs are not deferred per ASC 978-720-25 and ASC 978-340-25.
n/m = not meaningful
26
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Owned Hotels without Comparable Results and Other Selected Items
As of June 30, 2015
UNAUDITED ($ millions)
Owned Hotels without comparable results in 2015 and 2014:
Hotel | | Location |
The Westin Excelsior, Florence | | Florence, Italy |
The Westin Resort & Spa, Los Cabos | | Los Cabos, Mexico |
Sheraton Maria Isabel Hotel & Towers | | Mexico City, Mexico |
Owned Hotels sold in 2015 and 2014:
Hotel | | Location |
Aloft Philadelphia Airport | | Philadelphia, PA |
Aloft Tucson University | | Tucson, AZ |
Element Denver Park Meadows | | Denver, CO |
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 Gritti Palace, a Luxury Collection Hotel, Venice | | Venice, Italy |
The Park Lane Hotel | | London, England |
The Phoenician, a Luxury Collection Resort, Scottsdale | | Scottsdale, AZ |
The St. Regis Bal Harbour Resort | | Miami Beach, FL |
The St. Regis Rome | | Rome, Italy |
The Westin Dublin Hotel | | Dublin, Ireland |
Revenues and Expenses Associated with Hotels Sold in 2015 and 2014: (1)
| | Q1 | | | Q2 | | | Q3 | | | Q4 | | | Full Year | |
Hotels Sold in 2014: | | | | | | | | | | | | | | | | | | | | |
2014 | | | | | | | | | | | | | | | | | | | | |
Revenues | | $ | 50 | | | $ | 44 | | | $ | 37 | | | $ | 20 | | | $ | 151 | |
Expenses (excluding depreciation) | | $ | 38 | | | $ | 31 | | | $ | 27 | | | $ | 12 | | | $ | 108 | |
| | | | | | | | | | | | | | | | | | | | |
Hotels Sold in 2015: | | | | | | | | | | | | | | | | | | | | |
2015 | | | | | | | | | | | | | | | | | | | | |
Revenues | | $ | 48 | | | $ | 34 | | | | — | | | | — | | | $ | 82 | |
Expenses (excluding depreciation) | | $ | 29 | | | $ | 21 | | | | — | | | | — | | | $ | 50 | |
| | | | | | | | | | | | | | | | | | | | |
2014 | | | | | | | | | | | | | | | | | | | | |
Revenues | | $ | 46 | | | $ | 39 | | | $ | 24 | | | $ | 34 | | | $ | 143 | |
Expenses (excluding depreciation) | | $ | 29 | | | $ | 26 | | | $ | 22 | | | $ | 26 | | | $ | 103 | |
(1) | Results consist of nine hotels sold or closed in 2014, two leased hotels converted to managed or franchised hotels in 2014, and three hotels sold in 2015. These amounts are included in the revenues and expenses from owned, leased, and consolidated joint venture hotels in the statements of income for 2015 and 2014. |
27
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Capital Expenditures
For the Three and Six Months Ended June 30, 2015
UNAUDITED ($ millions)
| | Q2 | | | YTD | |
Maintenance Capital Expenditures: (1) | | | | | | | | |
Owned, Leased and Consolidated Joint Venture Hotels | | | 15 | | | | 27 | |
Corporate/IT | | | 22 | | | | 40 | |
Subtotal | | | 37 | | | | 67 | |
| | | | | | | | |
Net capital expenditures for Vacation Ownership inventory (2) | | | 8 | | | | 17 | |
| | | | | | | | |
Development Capital | | | 38 | | | | 72 | |
| | | | | | | | |
Total Capital Expenditures | | | 83 | | | | 156 | |
(1) | Maintenance capital expenditures include improvements that extend the useful life of the asset. |
(2) | Represents gross inventory capital expenditures of $24 million and $55 million in the three and six months ended June 30, 2015, less cost of sales of $16 million and $38 million in the three and six months ended June 30, 2015. |
28
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Divisional Hotel Inventory Summary by Ownership by Brand
As of June 30, 2015
| | 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 | | 5,792 | | 5 | | 3,328 | | 4 | | 2,464 | | 1 | | 297 | | — | | — | | 1 | | 297 | | 2 | | 358 | | 2 | | 358 | | — | | — | | 12 | | 6,447 |
Westin | | 5 | | 2,734 | | 2 | | 1,832 | | 3 | | 902 | | 1 | | 246 | | — | | — | | 1 | | 246 | | 2 | | 487 | | 2 | | 487 | | — | | — | | 8 | | 3,467 |
Four Points | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — |
W | | 1 | | 509 | | 1 | | 509 | | — | | — | | — | | — | | — | | — | | — | | — | | 2 | | 665 | | 2 | | 665 | | — | | — | | 3 | | 1,174 |
Luxury Collection | | 1 | | 180 | | — | | — | | 1 | | 180 | | — | | — | | — | | — | | — | | — | | 4 | | 495 | | 4 | | 495 | | — | | — | | 5 | | 675 |
St. Regis | | 2 | | 498 | | 2 | | 498 | | — | | — | | 1 | | 160 | | — | | — | | 1 | | 160 | | 1 | | 100 | | 1 | | 100 | | — | | — | | 4 | | 758 |
Le Meridien | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — |
Aloft | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — |
Element | | — | | — | | — | | — | | — | | — | �� | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — |
Other | | 1 | | 135 | | 1 | | 135 | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | 1 | | 135 |
Total Owned | | 19 | | 9,848 | | 11 | | 6,302 | | 8 | | 3,546 | | 3 | | 703 | | — | | — | | 3 | | 703 | | 11 | | 2,105 | | 11 | | 2,105 | | — | | — | | 33 | | 12,656 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Managed & UJV | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Sheraton | | 47 | | 27,024 | | 29 | | 23,095 | | 18 | | 3,929 | | 96 | | 36,391 | | 65 | | 27,949 | | 31 | | 8,442 | | 74 | | 21,255 | | 42 | | 11,880 | | 32 | | 9,375 | | 217 | | 84,670 |
Westin | | 52 | | 26,859 | | 49 | | 25,973 | | 3 | | 886 | | 37 | | 12,450 | | 20 | | 7,047 | | 17 | | 5,403 | | 14 | | 4,790 | | 9 | | 3,451 | | 5 | | 1,339 | | 103 | | 44,099 |
Four Points | | 5 | | 672 | | 1 | | 134 | | 4 | | 538 | | 32 | | 9,071 | | 22 | | 6,629 | | 10 | | 2,442 | | 13 | | 2,568 | | 5 | | 673 | | 8 | | 1,895 | | 50 | | 12,311 |
W | | 28 | | 8,311 | | 24 | | 7,554 | | 4 | | 757 | | 10 | | 2,740 | | 4 | | 1,464 | | 6 | | 1,276 | | 5 | | 941 | | 4 | | 499 | | 1 | | 442 | | 43 | | 11,992 |
Luxury Collection | | 12 | | 2,581 | | 5 | | 2,291 | | 7 | | 290 | | 12 | | 2,478 | | 6 | | 1,306 | | 6 | | 1,172 | | 27 | | 4,891 | | 22 | | 3,301 | | 5 | | 1,590 | | 51 | | 9,950 |
St. Regis | | 12 | | 2,332 | | 9 | | 1,884 | | 3 | | 448 | | 9 | | 2,309 | | 6 | | 1,659 | | 3 | | 650 | | 9 | | 1,973 | | 5 | | 806 | | 4 | | 1,167 | | 30 | | 6,614 |
Le Meridien | | 5 | | 879 | | 4 | | 719 | | 1 | | 160 | | 31 | | 8,147 | | 9 | | 3,131 | | 22 | | 5,016 | | 41 | | 12,194 | | 14 | | 4,694 | | 27 | | 7,500 | | 77 | | 21,220 |
Aloft | | — | | — | | — | | — | | — | | — | | 12 | | 3,071 | | 9 | | 2,101 | | 3 | | 970 | | 4 | | 943 | | 3 | | 535 | | 1 | | 408 | | 16 | | 4,014 |
Element | | — | | — | | — | | — | | — | | — | | 1 | | 188 | | 1 | | 188 | | — | | — | | — | | — | | — | | — | | — | | — | | 1 | | 188 |
Other | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | 1 | | 250 | | — | | — | | 1 | | 250 | | 1 | | 250 |
Total Managed & UJV | | 161 | | 68,658 | | 121 | | 61,650 | | 40 | | 7,008 | | 240 | | 76,845 | | 142 | | 51,474 | | 98 | | 25,371 | | 188 | | 49,805 | | 104 | | 25,839 | | 84 | | 23,966 | | 589 | | 195,308 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Franchised | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Sheraton | | 177 | | 51,435 | | 162 | | 47,748 | | 15 | | 3,687 | | 12 | | 5,841 | | 3 | | 1,836 | | 9 | | 4,005 | | 22 | | 5,458 | | 19 | | 4,880 | | 3 | | 578 | | 211 | | 62,734 |
Westin | | 76 | | 24,509 | | 69 | | 22,224 | | 7 | | 2,285 | | 8 | | 2,531 | | 1 | | 288 | | 7 | | 2,243 | | 7 | | 1,985 | | 7 | | 1,985 | | — | | — | | 91 | | 29,025 |
Four Points | | 132 | | 20,029 | | 117 | | 17,932 | | 15 | | 2,097 | | 11 | | 1,804 | | 1 | | 126 | | 10 | | 1,678 | | 7 | | 1,085 | | 7 | | 1,085 | | — | | — | | 150 | | 22,918 |
W | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — |
Luxury Collection | | 13 | | 2,177 | | 9 | | 1,691 | | 4 | | 486 | | 12 | | 3,212 | | — | | — | | 12 | | 3,212 | | 13 | | 2,003 | | 13 | | 2,003 | | — | | — | | 38 | | 7,392 |
St. Regis | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — |
Le Meridien | | 17 | | 3,864 | | 16 | | 3,753 | | 1 | | 111 | | 5 | | 1,209 | | 1 | | 160 | | 4 | | 1,049 | | 3 | | 575 | | 3 | | 575 | | — | | — | | 25 | | 5,648 |
Aloft | | 71 | | 10,806 | | 66 | | 9,892 | | 5 | | 914 | | 6 | | 1,001 | | — | | — | | 6 | | 1,001 | | 1 | | 116 | | 1 | | 116 | | — | | — | | 78 | | 11,923 |
Element | | 16 | | 2,489 | | 16 | | 2,489 | | — | | — | | — | | — | | — | | — | | — | | — | | 1 | | 133 | | 1 | | 133 | | — | | — | | 17 | | 2,622 |
Other | | 2 | | 513 | | 2 | | 513 | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | 2 | | 513 |
Total Franchised | | 504 | | 115,822 | | 457 | | 106,242 | | 47 | | 9,580 | | 54 | | 15,598 | | 6 | | 2,410 | | 48 | | 13,188 | | 54 | | 11,355 | | 51 | | 10,777 | | 3 | | 578 | | 612 | | 142,775 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Systemwide | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Sheraton | | 233 | | 84,251 | | 196 | | 74,171 | | 37 | | 10,080 | | 109 | | 42,529 | | 68 | | 29,785 | | 41 | | 12,744 | | 98 | | 27,071 | | 63 | | 17,118 | | 35 | | 9,953 | | 440 | | 153,851 |
Westin | | 133 | | 54,102 | | 120 | | 50,029 | | 13 | | 4,073 | | 46 | | 15,227 | | 21 | | 7,335 | | 25 | | 7,892 | | 23 | | 7,262 | | 18 | | 5,923 | | 5 | | 1,339 | | 202 | | 76,591 |
Four Points | | 137 | | 20,701 | | 118 | | 18,066 | | 19 | | 2,635 | | 43 | | 10,875 | | 23 | | 6,755 | | 20 | | 4,120 | | 20 | | 3,653 | | 12 | | 1,758 | | 8 | | 1,895 | | 200 | | 35,229 |
W | | 29 | | 8,820 | | 25 | | 8,063 | | 4 | | 757 | | 10 | | 2,740 | | 4 | | 1,464 | | 6 | | 1,276 | | 7 | | 1,606 | | 6 | | 1,164 | | 1 | | 442 | | 46 | | 13,166 |
Luxury Collection | | 26 | | 4,938 | | 14 | | 3,982 | | 12 | | 956 | | 24 | | 5,690 | | 6 | | 1,306 | | 18 | | 4,384 | | 44 | | 7,389 | | 39 | | 5,799 | | 5 | | 1,590 | | 94 | | 18,017 |
St. Regis | | 14 | | 2,830 | | 11 | | 2,382 | | 3 | | 448 | | 10 | | 2,469 | | 6 | | 1,659 | | 4 | | 810 | | 10 | | 2,073 | | 6 | | 906 | | 4 | | 1,167 | | 34 | | 7,372 |
Le Meridien | | 22 | | 4,743 | | 20 | | 4,472 | | 2 | | 271 | | 36 | | 9,356 | | 10 | | 3,291 | | 26 | | 6,065 | | 44 | | 12,769 | | 17 | | 5,269 | | 27 | | 7,500 | | 102 | | 26,868 |
Aloft | | 71 | | 10,806 | | 66 | | 9,892 | | 5 | | 914 | | 18 | | 4,072 | | 9 | | 2,101 | | 9 | | 1,971 | | 5 | | 1,059 | | 4 | | 651 | | 1 | | 408 | | 94 | | 15,937 |
Element | | 16 | | 2,489 | | 16 | | 2,489 | | — | | — | | 1 | | 188 | | 1 | | 188 | | — | | — | | 1 | | 133 | | 1 | | 133 | | — | | — | | 18 | | 2,810 |
Other | | 3 | | 648 | | 3 | | 648 | | — | | — | | — | | — | | — | | — | | — | | — | | 1 | | 250 | | — | | — | | 1 | | 250 | | 4 | | 898 |
Vacation Ownership | | 15 | | 7,662 | | 14 | | 7,082 | | 1 | | 580 | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | 15 | | 7,662 |
Total Systemwide | | 699 | | 201,990 | | 603 | | 181,276 | | 96 | | 20,714 | | 297 | | 93,146 | | 148 | | 53,884 | | 149 | | 39,262 | | 253 | | 63,265 | | 166 | | 38,721 | | 87 | | 24,544 | | 1,249 | | 358,401 |
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STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Vacation Ownership Inventory Pipeline
As of June 30, 2015
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 | | | | 1,676 | | | | 412 | | | | 43 | | | | 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 | | | | 4,916 | | | | 412 | | | | 755 | | | | 6,083 | |
Unconsolidated Joint Ventures (UJV's) | | | 1 | | | | 1 | | | | 1 | | | | 198 | | | | — | | | | — | | | | 198 | |
Total including UJV's | | | 23 | | | | 22 | | | | 17 | | | | 5,114 | | | | 412 | | | | 755 | | | | 6,281 | |
Total Intervals Including UJV's (7) | | | | | | | | | | | | | | | 265,928 | | | | 21,424 | | | | 39,260 | | | | 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. |
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