(Reuters) - Sheraton owner Starwood Hotels & Resorts Worldwide Inc.on Thursday said fourth-quarter earnings slipped as major unanticipated increases in workers compensation offset strong results at its hotels and vacation timeshares.
Net income fell to $87 million, or 42 cents per share, from $91 million, or 45 cents per share, at the White Plains, New York, company that also owns the Westin and W hotel brands. Excluding one-time items, Starwood earned 24 cents a year earlier.
The White Plains, New York-based hotelier's results topped the average Wall Street estimate of 32 cents.
Total revenue, which includes revenue from managed and franchised properties, rose to $1.2 billion from $1.16 billion.
Revenue per available room, a key measure of health in the lodging industry, rose 6.6 percent on a worldwide basis and 4.7 percent in North America, as corporate travel spending made a comeback.
Starwood in October had forecast fourth-quarter room revenue would rise about 2 percent at its company-owned North American hotels and accelerate to a 4 percent to 5 percent rise in 2004.
Looking ahead, the hotel operator expects to earn 8 cents a share for the first quarter and $1.10 a share for full-year 2004. It also expects revenue per available room to climb 5 percent to 6 percent in the first quarter.
Analysts, on average, expect the company to earn 1 cent a share in the first quarter and 93 cents a share for the year.
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