Starwood Results

Starwood Reports First Quarter 2016 Net Income of $90 Million

Excluding special items, income from continuing operations was $118 million. Including special items, income from continuing operations was $90 million - Worldwide Systemwide REVPAR for Same-Store Hotels increased 1.0% in constant dollars (decreased 1.3% in actual dollars) compared to 2015. Systemwide REVPAR for Same-Store Hotels in North America increased 2.0% in constant dollars (increased 1.3% in actual dollars).

Starwood

Starwood Hotels & Resorts Worldwide, Inc. (NYSE:HOT) today reported first quarter 2016 financial results.

First Quarter 2016 Highlights

  • Excluding special items, EPS from continuing operations was $0.70. Including special items, EPS from continuing operations was $0.53.
  • Adjusted EBITDA was $281 million.
  • Excluding special items, income from continuing operations was $118 million. Including special items, income from continuing operations was $90 million.
  • Worldwide Systemwide REVPAR for Same-Store Hotels increased 1.0% in constant dollars (decreased 1.3% in actual dollars) compared to 2015. Systemwide REVPAR for Same-Store Hotels in North America increased 2.0% in constant dollars (increased 1.3% in actual dollars).
  • Management fees, franchise fees and other income increased 6.7% compared to 2015. Core fees increased 4.2% compared to 2015.
  • Earnings from Starwood’s vacation ownership and residential business decreased approximately $7 million compared to 2015.
  • During the quarter, the Company signed 44 hotel management and franchise contracts, representing approximately 7,000 rooms and opened 18 hotels and resorts with approximately 3,700 rooms.
  • During the quarter, the Company paid a quarterly dividend of $0.375 per share.
  • During the quarter, the Company completed the sale of the Hotel Imperial, a Luxury Collection Hotel, Vienna for gross cash proceeds of approximately $80 million, subject to a long-term management agreement.
  • On April 8, 2016, at special stockholder meetings, the stockholders of the Company and Marriott International, Inc. (“Marriott”) approved proposals relating to Marriott’s acquisition of the Company.
  • On April 20, 2016, the stockholders of Interval Leisure Group, Inc. (“ILG”) approved the issuance of shares of ILG common stock in connection with the acquisition of Vistana Signature Experiences, Inc. (“Vistana”), the Company’s vacation ownership business, which is expected to be accomplished through a merger of Vistana with a wholly-owned subsidiary of ILG immediately following the spin-off of Vistana from the Company.

First Quarter 2016 Earnings Summary

Starwood Hotels & Resorts Worldwide, Inc. (“Starwood” or the “Company”) today reported EPS from continuing operations for the first quarter of 2016 of $0.53 compared to $0.58 in the first quarter of 2015. Excluding special items, EPS from continuing operations was $0.70 for the first quarter of 2016 compared to $0.65 in the first quarter of 2015.

Special items in the first quarter of 2016 consisted primarily of restructuring and other special charges of $39 million ($24 million after-tax). Special items in the first quarter of 2015 totaled a charge of $11 million (after-tax). Excluding special items, the effective income tax rate in the first quarter of 2016 was 34.4% compared to 32.5% in the first quarter of 2015, primarily due to the mix and timing of pretax income.

Income from continuing operations was $90 million in the first quarter of 2016, compared to $99 million in the first quarter of 2015. Excluding special items, income from continuing operations was $118 million in the first quarter of 2016 compared to $110 million in the first quarter of 2015.

Net income was $90 million and $0.53 per share in the first quarter of 2016, compared to $99 million and $0.58 per share in the first quarter of 2015.

Thomas Mangas, Chief Executive Officer of the Company said, “We had a very strong quarter, despite facing a tough macroeconomic environment and the distraction of a very public bidding war for our company. Thanks to the hard work, dedication and perseverance of our highly talented associates around the world, we delivered adjusted EBITDA and EPS well ahead of our expectations.

“We achieved these results by staying focused on execution. With REVPAR in-line with our expectations and solid net rooms growth, we experienced the highest core fees growth in the last six quarters. Our strong pace of development continued in the first quarter, with 18 hotels opened and 44 new hotels signed, the highest level of signings in a first quarter since 2007. Our hotels outperformed the competition, increasing REVPAR Index across our three divisions, with strong REVPAR index performance at Sheraton in particular.

“Our results speak to the strength of our people, our brands and innovative spirit, the value of SPG and the power of our global systems.”

Alan Schnaid, Chief Financial Officer of the Company said, “Our outlook for the rest of 2016 remains strong. We are maintaining our expectations for full year REVPAR growth and increasing our guidance ranges for both EBITDA and EPS. With the impending completion of the spin-off of our vacation ownership business and its subsequent merger with ILG, we will take another significant step toward becoming asset light, as well as achieving an important milestone toward the completion of our merger with Marriott. As we look ahead, we remain bullish on the prospects for global hospitality, and believe that the future of our company combined with Marriott is especially bright.”

First Quarter 2016 Operating Results

Management and Franchise Revenues

Worldwide Systemwide REVPAR for Same-Store Hotels increased 1.0% in constant dollars (decreased 1.3% in actual dollars) compared to the first quarter of 2015. International Systemwide REVPAR for Same-Store Hotels decreased 0.2% in constant dollars (decreased 4.4% in actual dollars).

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

        REVPAR  
Region

   Constant   

   Dollars   

   

   Actual   

   Dollars   

Americas:    
North America 2.0 % 1.3 %
Latin America (3.2 )% (3.2 )%
Asia Pacific:
Greater China 0.5 % (3.3 )%
Rest of Asia 5.0 % (1.8 )%
Europe, Africa & Middle East:
Europe 1.0 % (5.3 )%
Africa & Middle East (7.0 )% (9.1 )%
 

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

          REVPAR  
Brand

   Constant   

   Dollars   

   

   Actual   

   Dollars   

St. Regis/Luxury Collection   0.6 %   (2.1 )%
W Hotels (2.1 )% (3.7 )%
Westin 3.8 % 1.6 %
Sheraton 0.0 % (2.3 )%
Le Méridien 0.5 % (2.8 )%
Four Points by Sheraton (1.0 )% (3.9 )%
Aloft 2.8 % 1.1 %
 

Worldwide Same-Store Company-Operated gross operating profit margins increased approximately 15 basis points compared to 2015. International gross operating profit margins for Same-Store Company-Operated properties increased approximately 40 basis points. North American Same-Store Company-Operated gross operating profit margins decreased approximately 20 basis points.

Management fees, franchise fees and other income were $256 million, up $16 million, or 6.7% compared to the first quarter of 2015. Core fees increased 4.2% to $199 million. Other management and franchise revenues increased 20.0% or $9 million, primarily due to fees associated with the termination of certain franchise contracts during the quarter.

Development

During the first quarter of 2016, the Company signed 44 hotel management and franchise contracts, representing approximately 7,000 rooms, of which 32 are new builds and 12 are conversions from other brands. At March 31, 2016, the Company had approximately 540 hotels in the active pipeline representing approximately 118,000 rooms.

During the first quarter of 2016, 18 new hotels and resorts (representing approximately 3,700 rooms) entered the system, including The Element Amsterdam, (Netherlands, 160 rooms), Aloft Boston Seaport (Massachusetts, 330 rooms), The Westin Doha Hotel & Spa (Qatar, 365 rooms), The Westin at The Woodlands (Texas, 302 rooms) and The Sheraton Cascais Resort (Portugal, 146 rooms). During the quarter, seven properties (representing approximately 1,300 rooms) were removed from the system.

Owned Hotels

Worldwide REVPAR at Starwood Same-Store Owned Hotels increased 5.3% in constant dollars (increased 2.3% in actual dollars) when compared to 2015. REVPAR at Starwood Same-Store Owned Hotels in North America increased 5.4% in constant dollars (increased 2.6% in actual dollars). Internationally, Starwood Same-Store Owned Hotel REVPAR increased 5.0% in constant dollars (increased 1.9% in actual dollars).

Revenues at Starwood Same-Store Owned Hotels Worldwide increased 4.9% in constant dollars (increased 1.9% in actual dollars) while costs and expenses increased 1.0% in constant dollars (decreased 2.0% in actual dollars) when compared to 2015. Margins at these hotels increased approximately 330 basis points compared to 2015.

Revenues at Starwood Same-Store Owned Hotels in North America increased 4.6% in constant dollars (increased 1.7% in actual dollars) while costs and expenses increased 2.2% in constant dollars (decreased 0.5% in actual dollars) when compared to 2015. Margins at these hotels increased approximately 190 basis points compared to 2015.

Internationally, revenues at Starwood Same-Store Owned Hotels increased 5.3% in constant dollars (increased 2.0% in actual dollars) while costs and expenses decreased 0.8% in constant dollars (decreased 4.4% in actual dollars) when compared to 2015. Margins at these hotels, which include the favorable impact of the devaluation of the Argentinian Peso, increased approximately 550 basis points compared to 2015.

Revenues at Owned Hotels, which were negatively impacted by asset sales since the first quarter of 2015, were $265 million, compared to $316 million in 2015. Expenses at Owned Hotels were $217 million compared to $262 million in 2015.

Vacation Ownership and Residential

Vacation ownership and residential revenues for the three months ended March 31, 2016 decreased 1.1%, to $185 million, compared to the corresponding period in 2015, primarily driven by a $26 million decrease in revenues recognized under the percentage of completion method and other deferrals. This amount was partially offset by an increase in originated contract sales of vacation ownership intervals of $22 million, primarily driven by the sales launch of the Westin Nanea Ocean Villas in late 2015 as well as sales of the Sheraton Flex product. The number of contracts signed increased 14.8% and the average price per vacation ownership unit sold increased 10.5% to approximately $18,100.

Selling, General, Administrative and Other

During the first quarter of 2016, selling, general, administrative and other expenses (“SG&A”) decreased 5.5% to $86 million compared to $91 million in 2015 including the impact of various cost savings initiatives announced in 2015.

Capital

Gross capital spending during the quarter included approximately $24 million of maintenance capital and $59 million of development capital.

Asset Sales

During the first quarter of 2016, the Company completed the sale of the Hotel Imperial, a Luxury Collection Hotel, Vienna for gross cash proceeds of approximately $80 million, subject to a long-term management agreement.

Restructuring and Other Special Charges

During the first quarter of 2016, the Company recorded an $8 million restructuring charge primarily related to the Company’s cost savings initiatives announced in 2015. The Company also recorded $31 million of other special charges primarily consisting of $19 million in costs associated with the Marriott transaction and $7 million in costs associated with the ILG transaction.

Dividend

On February 25, 2016, the Company declared a regular quarterly dividend of $0.375 per share, which was paid on March 28, 2016 to stockholders of record as of March 14, 2016. The total dividends paid in the first quarter of 2016 were approximately $63 million.

Balance Sheet

At March 31, 2016, the Company had gross debt of $2.3 billion, cash and cash equivalents of $1.2 billion (including $64 million of restricted cash) and net debt of $1.1 billion, compared to net debt of $1.1 billion as of December 31, 2015, in each case excluding debt and restricted cash associated with securitized vacation ownership notes receivable. Net debt at March 31, 2016, including $156 million of debt and $8 million of restricted cash associated with securitized vacation ownership notes receivable, was $1.3 billion.

ILG Transaction

On April 20, 2016, the stockholders of ILG approved the proposal necessary for the acquisition of Vistana. The Company and certain of its subsidiaries will engage in a series of transactions in which certain assets and liabilities will be (a) sold directly to one or more subsidiaries of ILG, or (b) otherwise conveyed pursuant to an internal restructuring to Vistana and entities that will become Vistana subsidiaries. Immediately thereafter, all of the shares of common stock of Vistana will be distributed on a pro rata basis to the Company’s stockholders and unitholders of SLC Operating Limited Partnership, and immediately thereafter Vistana will merge with a wholly-owned subsidiary of ILG. Immediately following the completion of the ILG transaction, the Company’s stockholders will own approximately 55% of the outstanding shares of ILG on a fully-diluted basis, and the existing shareholders of ILG will own approximately 45% of ILG on a fully-diluted basis.

On April 29, 2016, ILG and the Company announced a brief delay in the planned closing of ILG’s acquisition of Vistana, while both companies work to avoid unnecessary tax withholding under the Foreign Investment in Real Property Tax Act of 1980 (FIRPTA), as discussed in the Company’s and ILG’s Current Reports on Form 8-K, which were filed with the U.S. Securities and Exchange Commission on April 19, 2016. The companies are working to finalize the procedures to identify which shareholders are properly subject to this withholding. The acquisition was previously expected to close on April 30, 2016, and is now expected to close in May, subject to satisfaction or waiver of customary closing conditions.

Marriott Transaction

On April 8, 2016, the Company and Marriott held special stockholder meetings at which the stockholders of the Company and Marriott approved proposals relating to Marriott’s acquisition of the Company. At closing, the Company’s stockholders will receive 0.80 shares of Marriott common stock and $21.00 in cash for each share of the Company’s common stock. The transaction remains on track to close in mid-2016 and is subject to remaining regulatory approvals, including in the European Union and China, and the satisfaction of other customary closing conditions.

Outlook

  • The improvement in the Company’s 2016 EBITDA outlook is driven primarily by the timing of the spin-off of the Company’s vacation ownership business (previous guidance assumed April 1, 2016), favorable shifts in foreign exchange rates compared to prior guidance and the expected improvement in performance at owned properties.
  • The following outlook assumes the spin-off of the vacation ownership business and subsequent merger with ILG occurred as of April 30, 2016. Transaction costs related to the ILG and Marriott transactions are not included in full year SG&A guidance. While the Company continues to expect that the Marriott transaction will close in mid-2016, the following guidance assumes that the Company remains an independent company through the end of 2016.

For the full year 2016:

  • Adjusted EBITDA is expected to be approximately $1.150 billion to $1.165 billion (based on the assumptions below).

     

    • REVPAR at Same-Store Systemwide Hotels Worldwide is expected to be up 2% to 4% in constant dollars (approximately 60 basis points lower in actual dollars at current exchange rates).
    • REVPAR at Same-Store Owned Hotels Worldwide is expected to be up 2% to 4% in constant and actual dollars.
    • Margins at Same-Store Owned Hotels Worldwide are expected to increase 100 to 150 basis points.
    • Core fees are expected to increase approximately 5.5% to 7.5%.
    • Management fees, franchise fees and other income are expected to increase approximately 6% to 8%, including approximately $27 million related to eight months of license fees from the vacation ownership business following the ILG transaction.
    • Earnings from the Company’s vacation ownership and residential business of approximately $65 million to $70 million, consisting of approximately $59 million of vacation ownership earnings in the first four months of 2016 and approximately $6 million to $11 million of residential earnings.
    • SG&A is expected to be favorable by 3% to 5% compared to 2015.
    • Net rooms growth is expected to be approximately 4% to 5%.
    • Shifts in exchange rates since 2015 will negatively impact full year earnings by approximately $1 million if exchange rates stay at current levels.
    • Owned earnings are negatively impacted by approximately $38 million due to asset sales completed in 2015, with additional negative impact of approximately $21 million expected due to lost earnings from the five hotels to be transferred to ILG in connection with the ILG transaction. Owned earnings are negatively impacted by approximately $2 million due to asset sales completed in 2016.
  • Depreciation and amortization is expected to be approximately $280 million.
  • Interest expense is expected to be approximately $115 million.
  • Full year effective tax rate is expected to be approximately 33.0%, and cash taxes from operating earnings are expected to be approximately $155 million.
  • EPS before special items is expected to be approximately $3.00 to $3.06 (based on the assumptions above).
  • Cash flow from operations is expected to be approximately $800 million to $900 million (based on the assumptions above). Cash flow from operations includes the investment in vacation ownership inventory of $70 million (for the first four months of 2016 only).
  • 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 $120 million.

For the three months ended June 30, 2016:

  • Adjusted EBITDA is expected to be approximately $275 million to $285 million (based on the assumptions below).

     

    • REVPAR at Same-Store Systemwide Hotels Worldwide is expected to increase 2% to 4% in constant dollars (approximately 50 basis points lower in actual dollars at current exchange rates).
    • REVPAR at Same-Store Owned Hotels Worldwide is expected to increase 2% to 4% in constant dollars (approximately 10 basis points lower in actual dollars at current exchange rates).
    • Core fees are expected to increase approximately 3% to 5%.
    • Management fees, franchise fees and other income are expected to increase approximately 6% to 8%.
    • Earnings from the Company’s vacation ownership and residential business are expected to be approximately $15 million to $20 million.
  • EPS before special items is expected to be approximately $0.69 to $0.74 (based on the assumptions above).

Special Items

The Company’s special items included a pre-tax charge of $37 million ($28 million after-tax) in the first quarter of 2016 compared to a pre-tax charge of $13 million ($11 million after-tax) in the same period of 2015.

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
March 31,

     2016     

     

     2015     

Income from continuing operations before special items $       118 $       110
EPS before special items $       0.70 $       0.65
Special Items            
Restructuring and other special (charges) credits, net (a) (39 ) (31 )
Gain (loss) on asset dispositions and impairments, net (b) 2 14
Gain on sale of an unconsolidated joint venture hotel (c)                 4
Total special items – pre-tax (37 ) (13 )
Income tax benefit for special items (d) 16
Income tax benefit (expense) - other non-recurring items (e)         (7 )         2
Total special items – after-tax         (28 )         (11 )
Income from continuing operations $       90 $       99
EPS including special items $       0.53 $       0.58
 
a)   During the three months ended March 31, 2016, the net charge primarily relates to $19 million in costs associated with the Marriott transaction, $7 million in costs associated with the ILG transaction, and $8 million in costs related to the Company’s cost savings initiatives announced in 2015. During the three months ended March 31, 2015, the net charge relates to $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 ILG transaction.
 
b) During the three months ended March 31, 2016, the net benefit primarily relates to the reduction of an obligation associated with a previous disposition. During the three months ended March 31, 2015, the net benefit primarily relates to the sale of a minority partnership interest in a hotel.
 
c) During the three months ended March 31, 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 months ended March 31, 2016, the net benefit relates to tax benefits on the pre-tax special items.
 
e) During the three months ended March 31, 2016 the net charge primarily relates to hurricane Odile insurance proceeds partially offset by a favorable change in tax reserves. During the three months ended March 31, 2015, the net benefit primarily relates to the change in tax reserves.
 

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.

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.

Starwood Hotels & Resorts Worldwide, Inc. is one of the leading hotel and leisure companies in the world with more than 1,300 properties in some 100 countries and approximately 188,000 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®, Tribute Portfolio™, Four Points® by Sheraton, Aloft®, and Element®, along with an expanded partnership with Design Hotels™. The Company also boasts one of the industry’s leading loyalty programs, Starwood Preferred Guest (SPG®). 

 
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Unaudited Consolidated Statements of Income
(In millions, except per share data)
 
        Three Months Ended
March 31,

     2016     

   

     2015     

   

   %   

   Variance   

Revenues              
Owned, leased and consolidated joint venture hotels $ 265 $ 316 (16.1 )

Vacation ownership and residential sales and

   services

185 187 (1.1 )
Management fees, franchise fees and other income 256 240 6.7

Other revenues from managed and franchised

   properties (a)

 

        698         672   3.9
1,404 1,415 (0.8 )
Costs and Expenses
Owned, leased and consolidated joint venture hotels 217 262 17.2
Vacation ownership and residential 142 137 (3.6 )
Selling, general, administrative and other 86 91 5.5
Restructuring and other special charges (credits), net 39 31 (25.8 )
Depreciation 62 62
Amortization 8 7 (14.3 )

Other expenses from managed and franchised

   properties (a)

        698         672   (3.9 )
1,252 1,262 0.8
Operating income 152 153 (0.7 )

Equity earnings and gains from unconsolidated

   ventures, net

12 15 (20.0 )
Interest expense, net of interest income of $1 and $1 (23 ) (31 ) 25.8

Gain (loss) on asset dispositions and impairments,

   net

        2         14   (85.7 )

Income from continuing operations before taxes and

   noncontrolling interests

143 151 (5.3 )
Income tax expense         (53 )         (52 )   (1.9 )
Income from continuing operations 90 99 (9.1 )
Discontinued Operations:
Loss on dispositions, net of tax                  
Net income attributable to Starwood $       90 $       99   (9.1 )
Earnings (Losses) Per Share – Basic
Continuing operations $ 0.54 $ 0.59 (8.5 )
Discontinued operations                  

Net income

$       0.54 $       0.59   (8.5 )
Earnings (Losses) Per Share – Diluted
Continuing operations $ 0.53 $ 0.58 (8.6 )
Discontinued operations                  
Net income $       0.53 $       0.58   (8.6 )
Weighted average number of shares         167        

170

Weighted average number of shares assuming

   dilution

        168         171
 
 
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Consolidated Balance Sheets
(In millions, except share data)
 
       

   March 31,   

      December 31,
2016 2015
(unaudited)
Assets      
Current assets:
Cash and cash equivalents $ 1,180 $ 1,048
Restricted cash 68 54
Accounts receivable, net of allowance for doubtful accounts of $83 and $78 671 690
Inventories 355 319
Securitized vacation ownership notes receivable, net of allowance for

doubtful accounts of $2 and $2

31 32
Prepaid expenses and other         175   152
Total current assets 2,480 2,295
Investments 197 183
Plant, property and equipment, net 2,068 2,144
Goodwill and intangible assets, net 1,948 1,908
Deferred income taxes 757 747
Other assets (a) 867 839
Securitized vacation ownership notes receivable, net         127   141
Total assets $       8,444 $ 8,257
Liabilities and Stockholders’ Equity
Current liabilities:
Short-term borrowings and current maturities of long-term debt (b) $ 34 $ 33
Accounts payable 115 98
Current maturities of long-term securitized vacation ownership debt 45 48
Accrued expenses 1,399 1,354
Accrued salaries, wages and benefits 325 400
Accrued taxes and other         312   303
Total current liabilities 2,230 2,236
Long-term debt (b) 2,318 2,144
Long-term securitized vacation ownership debt 111 123
Deferred income taxes 31 34
Other liabilities         2,407   2,421
Total liabilities         7,097   6,958
Commitments and contingencies
Stockholders’ equity:

Common stock; $0.01 par value; authorized 1,000,000,000 shares; 169,537,501

   and 168,754,605 shares outstanding at March 31, 2016 and

   December 31, 2015, respectively

2 2
Additional paid-in capital 115 115
Accumulated other comprehensive loss (645 ) (668 )
Retained earnings         1,872   1,847
Total Starwood stockholders’ equity 1,344 1,296
Noncontrolling interests         3   3
Total equity         1,347   1,299
Total liabilities and equity $       8,444 $ 8,257
 
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Non-GAAP to GAAP Reconciliations – Historical Data
(In millions)
 
        Three Months Ended
March 31,

     2016     

   

     2015     

   

   %   

  Variance   

Reconciliation of Net Income to EBITDA and

Adjusted EBITDA

             
Net income $ 90 $ 99 (9.1 )
Interest expense (a) 26 35 (25.7 )
Income tax expense 53 52 1.9
Depreciation (b) 67 68 (1.5 )
Amortization (c)         8         7   14.3
EBITDA 244 261 (6.5 )
(Gain) loss on asset dispositions and impairments,

net

(2 ) (14 ) 85.7
Restructuring and other special charges (credits), net 39 31 25.8
Gain on sale of a unconsolidated joint venture hotel (d)                 (4 )   100.0
Adjusted EBITDA $       281 $       274   2.6
 
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Non-GAAP to GAAP Reconciliations – Same-Store Owned Hotels Worldwide
(In millions)
 
        Three Months Ended
March 31, 2016
$ Change   % Variance
Revenue    
Revenue increase/(decrease) (GAAP) $ 4 1.9
Impact of changes in foreign exchange rates     8   3.0
Revenue increase/(decrease) in constant dollars $   12   4.9
Expense
Expense increase/(decrease) (GAAP) $ (4 ) (2.0 )
Impact of changes in foreign exchange rates     6   3.0
Expense increase/(decrease) in constant dollars $   2   1.0
 
 
Non-GAAP to GAAP Reconciliations – Same-Store Owned Hotels North America
(In millions)
 
Three Months Ended
March 31, 2016

     $ Change     

   % Variance   

Revenue
Revenue increase/(decrease) (GAAP) $ 3 1.7
Impact of changes in foreign exchange rates     4   2.9
Revenue increase/(decrease) in constant dollars

$

  7   4.6
Expense

 

Expense increase/(decrease) (GAAP) $ (1 ) (0.5 )
Impact of changes in foreign exchange rates     4   2.7
Expense increase/(decrease) in constant dollars $   3   2.2
 
 
Non-GAAP to GAAP Reconciliations – Same-Store Owned Hotels International
(In millions)
 
Three Months Ended
March 31, 2016
$ Change % Variance
Revenue
Revenue increase/(decrease) (GAAP) $ 1 2.0
Impact of changes in foreign exchange rates     4   3.3
Revenue increase/(decrease) in constant dollars $   5   5.3
Expense
Expense increase/(decrease) (GAAP) $ (3 ) (4.4 )
Impact of changes in foreign exchange rates     2   3.6
Expense increase/(decrease) in constant dollars $   (1 )   (0.8 )
 
 
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Non-GAAP to GAAP Reconciliations – Future Performance
(In millions, except per share data)
 
          Low Case        
Three Months Ended Year Ended
June 30, 2016 December 31, 2016
$ 117 Net income $ 469
30 Interest expense 115
58 Income tax expense 249
  70 Depreciation and amortization   280
275 EBITDA 1,113
Gain on asset dispositions and impairments, net (2 )
  Restructuring and other special charges, net   39
$ 275 Adjusted EBITDA $ 1,150
 
Three Months Ended Year Ended
June 30, 2016 December 31, 2016
$ 117 Income from continuing operations before special items $ 506
$ 0.69 EPS before special items $ 3.00
Special Items
Restructuring and other special charges, net (39 )
  Gain on asset dispositions and impairments, net   2
Total special items – pre-tax (37 )
Income tax benefit on special items 16
  Income tax expense – other non-recurring items   (7 )
  Total special items – after-tax   (28 )
$ 117 Income from continuing operations $ 478
$ 0.69 EPS including special items $ 2.83
 
 
High Case
Three Months Ended Year Ended
June 30, 2016 December 31, 2016
$ 124 Net income $ 479
30 Interest expense 115
61 Income tax expense 254
  70 Depreciation and amortization   280
285 EBITDA 1,128
Gain on asset dispositions and impairments, net (2 )
  Restructuring and other special charges, net   39
$ 285 Adjusted EBITDA $ 1,165
 
Three Months Ended Year Ended
June 30, 2016 December 31, 2016
$ 124 Income from continuing operations before special items $ 516
$ 0.74 EPS before special items $ 3.06
Special Items
Restructuring and other special charges, net (39 )
  Gain on asset dispositions and impairments, net   2
Total special items – pre-tax (37 )
Income tax benefit on special items 16
  Income tax expense – other non-recurring items   (7 )
  Total special items – after-tax   (28 )
$ 124 Income from continuing operations $ 488
$ 0.74 EPS including special items $ 2.89
 
 
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Non-GAAP to GAAP Reconciliations – Same Store Owned Hotel Revenue and Expenses
(In millions)
 
        Three Months Ended
March 31,

Same-Store Owned Hotels

Worldwide

     2016     

     

     2015     

     

  %

  Variance

Revenue              
Same-Store Owned Hotels (a) $ 250 $ 246 1.9
Hotels Sold or Closed in 2016 and 2015 2 59 (96.6 )
Hotels Without Comparable Results 9 8 12.5
Other ancillary hotel operations         4         3   33.3

Total Owned, Leased and Consolidated Joint Venture

  Hotels Revenue

$       265 $       316   (16.1 )
Costs and Expenses
Same-Store Owned Hotels (a) $ 208 $ 212 2.0
Hotels Sold or Closed in 2016 and 2015 2 40 95.0
Hotels Without Comparable Results 3 7 57.1
Other ancillary hotel operations         4         3   (33.3 )

Total Owned, Leased and Consolidated Joint Venture

  Hotels Costs and Expenses

$       217 $       262   17.2
 
 
Three Months Ended
March 31,

Same-Store Owned Hotels

North America

2016 2015 %

Variance

Revenue
Same-Store Owned Hotels (a) $ 155 $ 152 1.7
Hotels Sold or Closed in 2016 and 2015 45 (100.0 )
Hotels Without Comparable Results
Other ancillary hotel operations                  

Total Owned, Leased and Consolidated Joint Venture

  Hotels Revenue

$       155 $       197   (21.3 )
Costs and Expenses
Same-Store Owned Hotels (a) $ 129 $ 130 0.5
Hotels Sold or Closed in 2016 and 2015 26 100.0
Hotels Without Comparable Results 1 100.0
Other ancillary hotel operations                  

Total Owned, Leased and Consolidated Joint Venture

  Hotels Costs and Expenses

$       129 $       157   17.8
 
 
Three Months Ended

 

March 31,

Same-Store Owned Hotels

International

2016 2015 %

Variance

Revenue
Same-Store Owned Hotels (a) $ 95 $ 94 2.0
Hotels Sold or Closed in 2016 and 2015 2 14 (85.7 )
Hotels Without Comparable Results 9 8 12.5
Other ancillary hotel operations         4         3   33.3

Total Owned, Leased and Consolidated Joint Venture

  Hotels Revenue

$       110 $       119   (7.6 )
Costs and Expenses
Same-Store Owned Hotels (a) $ 79 $ 82 4.4
Hotels Sold or Closed in 2016 and 2015 2 14 85.7
Hotels Without Comparable Results 3 6 50.0
Other ancillary hotel operations         4         3   (33.3 )

Total Owned, Leased and Consolidated Joint Venture

  Hotels Costs and Expenses

$       88 $       105   16.2
 

STARWOOD HOTELS & RESORTS WORLDWIDE, INC.

Systemwide(1) Statistics - Same Store

For the Three Months Ended March 31,

UNAUDITED

 
        Systemwide - Worldwide     Systemwide - North America     Systemwide - International

   2016   

   

2015

   

Var. USD

2016     2015     Var. USD 2016     2015       Var. USD
TOTAL HOTELS                
REVPAR ($) 113.77 115.28 -1.3 % 126.94 125.34 1.3 % 100.50 105.14 -4.4 %
ADR ($) 169.34 173.50 -2.4 % 178.08 175.62 1.4 % 159.38 171.01 -6.8 %
Occupancy (%) 67.2 % 66.4 % 0.8 71.3 % 71.4 % -0.1 63.1 % 61.5 % 1.6
 
SHERATON
REVPAR ($) 94.54 96.76 -2.3 % 106.34 105.75 0.6 % 83.07 88.01 -5.6 %
ADR ($) 145.86 149.53 -2.5 % 153.68 151.46 1.5 % 137.17 147.33 -6.9 %
Occupancy (%) 64.8 % 64.7 % 0.1 69.2 % 69.8 % -0.6 60.6 % 59.7 % 0.9
 
WESTIN
REVPAR ($) 136.18 134.03 1.6 % 141.59 137.62 2.9 % 126.68 127.71 -0.8 %
ADR ($) 188.58 188.21 0.2 % 191.92 188.00 2.1 % 182.34 188.62 -3.3 %
Occupancy (%) 72.2 % 71.2 % 1.0 73.8 % 73.2 % 0.6 69.5 % 67.7 % 1.8
 
ST. REGIS/LUXURY COLLECTION
REVPAR ($) 198.93 203.11 -2.1 % 337.43 328.87 2.6 % 156.74 164.60 -4.8 %
ADR ($) 307.44 316.17 -2.8 % 454.33 439.56 3.4 % 253.66 269.82 -6.0 %
Occupancy (%) 64.7 % 64.2 % 0.5 74.3 % 74.8 % -0.5 61.8 % 61.0 % 0.8
 
LE MERIDIEN
REVPAR ($) 112.62 115.89 -2.8 % 164.13 155.18 5.8 % 101.34 107.31 -5.6 %
ADR ($) 171.65 182.48 -5.9 % 218.09 214.46 1.7 % 159.59 174.28 -8.4 %
Occupancy (%) 65.6 % 63.5 % 2.1 75.3 % 72.4 % 2.9 63.5 % 61.6 % 1.9
 
W
REVPAR ($) 214.60 222.92 -3.7 % 217.31 224.03 -3.0 % 210.50 221.24 -4.9 %
ADR ($) 288.35 302.04 -4.5 % 282.85 290.23 -2.5 % 297.36 322.09 -7.7 %
Occupancy (%) 74.4 % 73.8 % 0.6 76.8 % 77.2 % -0.4 70.8 % 68.7 % 2.1
 
FOUR POINTS
REVPAR ($) 68.88 71.65 -3.9 % 76.63 77.96 -1.7 % 60.62 64.96 -6.7 %
ADR ($) 105.81 112.84 -6.2 % 113.20 114.64 -1.3 % 97.25 110.63 -12.1 %
Occupancy (%) 65.1 % 63.5 % 1.6 67.7 % 68.0 % -0.3 62.3 % 58.7 % 3.6
 
ALOFT
REVPAR ($) 77.05 76.24 1.1 % 96.76 94.73 2.1 % 46.82 47.96 -2.4 %
ADR ($) 114.36 116.80 -2.1 % 136.06 133.63 1.8 % 75.96 84.62 -10.2 %
Occupancy (%) 67.4 % 65.3 % 2.1 71.1 % 70.9 % 0.2 61.6 % 56.7 % 4.9
 

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

 
 

STARWOOD HOTELS & RESORTS WORLDWIDE, INC.

Worldwide Hotel Results - Same Store

For the Three Months Ended March 31,

UNAUDITED

 
        Systemwide (1)       Company Operated (2)

     2016     

     

     2015     

    Var. USD

     2016     

   

     2015     

    Var. USD
TOTAL WORLDWIDE                  
REVPAR ($) 113.77 115.28 -1.3 % 125.45 128.89 -2.7 %
ADR ($) 169.34 173.50 -2.4 % 187.57 195.67 -4.1 %
Occupancy (%) 67.2 % 66.4 % 0.8 66.9 % 65.9 % 1.0
AMERICAS
REVPAR ($) 124.88 123.80 0.9 % 160.95 161.01 0.0 %
ADR ($) 177.19 175.80 0.8 % 220.99 220.48 0.2 %
Occupancy (%) 70.5 % 70.4 % 0.1 72.8 % 73.0 % -0.2
North America
REVPAR ($) 126.94 125.34 1.3 % 165.14 164.61 0.3 %
ADR ($) 178.08 175.62 1.4 % 222.91 221.70 0.5 %
Occupancy (%) 71.3 % 71.4 % -0.1 74.1 % 74.2 % -0.1
Latin America
REVPAR ($) 106.54 110.05 -3.2 % 130.08 134.38 -3.2 %
ADR ($) 168.21 177.67 -5.3 % 204.45 210.01 -2.6 %
Occupancy (%) 63.3 % 61.9 % 1.4 63.6 % 64.0 % -0.4
ASIA PACIFIC
REVPAR ($) 91.91 94.37 -2.6 % 91.94 94.97 -3.2 %
ADR ($) 142.77 153.96 -7.3 % 144.03 157.13 -8.3 %
Occupancy (%) 64.4 % 61.3 % 3.1 63.8 % 60.4 % 3.4
Greater China
REVPAR ($) 79.10 81.82 -3.3 % 78.32 80.89 -3.2 %
ADR ($) 133.42 146.67 -9.0 % 132.16 145.36 -9.1 %
Occupancy (%) 59.3 % 55.8 % 3.5 59.3 % 55.7 % 3.6
Rest of Asia Pacific
REVPAR ($) 112.47 114.50 -1.8 % 124.79 128.86 -3.2 %
ADR ($) 155.04 163.26 -5.0 % 166.69 179.03 -6.9 %
Occupancy (%) 72.5 % 70.1 % 2.4 74.9 % 72.0 % 2.9
EAME
REVPAR ($) 112.59 121.19 -7.1 % 122.29 132.17 -7.5 %
ADR ($) 185.24 196.62 -5.8 % 197.43 209.96 -6.0 %
Occupancy (%) 60.8 % 61.6 % -0.8 61.9 % 62.9 % -1.0
Europe
REVPAR ($) 99.52 105.07 -5.3 % 111.16 117.67 -5.5 %
ADR ($) 168.87 174.78 -3.4 % 183.81 190.12 -3.3 %
Occupancy (%) 58.9 % 60.1 % -1.2 60.5 % 61.9 % -1.4
Africa & Middle East
REVPAR ($) 133.93 147.39 -9.1 % 135.20 148.94 -9.2 %
ADR ($) 209.90 229.94 -8.7 % 212.44 232.10 -8.5 %
Occupancy (%) 63.8 % 64.1 % -0.3 63.6 % 64.2 % -0.6
 

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

(2) Includes same-store Owned and managed hotels

 
 

STARWOOD HOTELS & RESORTS WORLDWIDE, INC.

Owned Hotel Results - Same Store

For the Three Months Ended March 31,

UNAUDITED

 
          Worldwide     North America     International
2016     2015    

Var.

    USD    

2016     2015    

Var.

    USD    

  2016  

   

  2015  

   

Var.

    USD    

TOTAL HOTELS 29 Hotels 11 Hotels 18 Hotels
REVPAR ($)   160.09   156.43   2.3 %   175.09   170.66   2.6 %   140.77   138.10   1.9 %
ADR ($) 219.89 218.20 0.8 % 231.18 230.43 0.3 % 203.93 201.22 1.3 %
Occupancy (%) 72.8 % 71.7 % 1.1 75.7 % 74.1 % 1.6 69.0 % 68.6 % 0.4
 
Total Revenue* 250,089

 

245,534 1.9 % 154,642 151,994 1.7 % 95,447 93,540 2.0 %
Total Expenses* 208,129 212,409 2.0 % 129,304 129,957 0.5 % 78,825 82,451 4.4 %
 

*Revenues and Expenses above are represented in '000s

 
 

STARWOOD HOTELS & RESORTS WORLDWIDE, INC.

Management Fees, Franchise Fees and Other Income

For the Three Months Ended March 31,

UNAUDITED ($ millions)

 
          Worldwide

       2016       

     

       2015       

     

  Variance  

    % Variance
Management Fees              
Base Fees 85 85 - -
Incentive Fees   49     48     1     2.1 %
Total Management Fees 134 133 1 0.8 %
 
Franchise Fees   65     58     7     12.1 %
 
Total Management and Franchise Fees (Core Fees) 199 191 8 4.2 %
 
Other Management and Franchise Revenues (1)   54     45     9     20.0 %
 
Total Management and Franchise Revenues   253     236     17     7.2 %
 
Other   3     4     (1 )     (25.0 )%
 
Management Fees, Franchise Fees and Other Income   256     240     16     6.7 %
 
 

STARWOOD HOTELS & RESORTS WORLDWIDE, INC.

Vacation Ownership and Residential Revenues and Expenses

For the Three Months Ended March 31,

UNAUDITED ($ millions)

 
         

       2016       

   

       2015       

     

  $ Variance  

    % Variance
Originated Sales Revenues (1) — Vacation Ownership Sales   105   83   22   26.5 %
Other Sales and Services Revenues (2) 102 100 2 2.0 %
Deferred Revenues — Percentage of Completion (18 ) 1 (19 ) n/m
Deferred Revenues — Other (3)   (5

)

  2   (7 ) n/m
Vacation Ownership Sales and Services Revenues 184 186 (2 ) (1.1 )%
Residential Sales and Services Revenues   1   1     -

Total Vacation Ownership and Residential Sales and Services

   Revenues

  185   187   (2 )   (1.1 )%
 
Originated Sales Expenses (4) — Vacation Ownership Sales 79 64 (15 ) (23.4 )%
Other Expenses (5) 70 69 (1 ) (1.4 )%
Deferred Expenses — Percentage of Completion (9 ) 1 10 n/m
Deferred Expenses — Other   2   3   1   33.3 %
Vacation Ownership Expenses 142 137 (5 ) (3.6 )%
Residential Expenses        
Total Vacation Ownership and Residential Expenses   142   137   (5 )   (3.6 )%
 

Note:

 

Deferred revenue is calculated based on the Percentage of Completion ("POC") of the project. Deferred expenses, also based on POC, include product costs and direct sales and marketing costs only. Indirect sales and marketing costs are not deferred per ASC 978-720-25 and ASC 978-340-25.

 
n/m = not meaningful
 
 

STARWOOD HOTELS & RESORTS WORLDWIDE, INC.

Owned Hotels without Comparable Results and Other Selected Items

As of March 31, 2016

UNAUDITED ($ millions)

 

Owned Hotels without comparable results in 2016 and 2015:

 

Hotel

         

Location

Sheraton Maria Isabel Hotel & Towers Mexico City, Mexico
The Westin Resort & Spa, Los Cabos Los Cabos, Mexico
 

Owned Hotels sold or closed in 2016 and 2015:

 

Hotel

Location

Element Denver Park Meadows Denver, CO
Hotel Imperial, a Luxury Collection Hotel, Vienna Vienna, Austria
The Gritti Palace, a Luxury Collection Hotel, Venice Venice, Italy
The Phoenician, a Luxury Collection Resort, Scottsdale Scottsdale, AZ
The Westin Excelsior Rome Rome, Italy
 
 

Revenues and expenses associated with hotels sold or closed in 2016 and 2015: (1)

 
         

       Q1       

     

       Q2       

     

      Q3       

     

       Q4       

     

  Full Year  

Hotels Sold in 2015:
2015
Revenues $ 55 $ 45 $ 8 $ $ 108
Expenses (excluding depreciation) $ 36 $ 28 $ 6 $ $ 70
 
Hotels Sold in 2016:
2016
Revenues $ 2 $ $ $ $ 2
Expenses (excluding depreciation) $ 2 $ $ $ $ 2
 
2015
Revenues $ 4 $ 4 $ 4 $ 5 $ 17
Expenses (excluding depreciation) $ 4 $ 4 $ 3 $ 4 $ 15
 
 

STARWOOD HOTELS & RESORTS WORLDWIDE, INC.

Capital Expenditures

For the Three Months Ended March 31,

UNAUDITED ($ millions)

 
               

     2016     

Maintenance Capital Expenditures: (1)  
Owned, Leased and Consolidated Joint Venture Hotels 15
Corporate/IT   9
Subtotal 24
 
Net Capital Expenditures for Vacation Ownership Inventory (2) 36
 
Development Capital   59
 
Total Capital Expenditures   119
 
 

STARWOOD HOTELS & RESORTS WORLDWIDE, INC.

Divisional Hotel Inventory Summary by Ownership by Brand

As of March 31, 2016

                       
  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 5,787 5 3,323 4 2,464 1 297 1 297 2 358 2 358 12 6,442
Westin 5 2,734 2 1,832 3 902 1 246 1 246 1 171 1 171 7 3,151
Four Points
W 1 509 1 509 2 665 2 665 3 1,174
Luxury Collection 1 180 1 180 3 357 3 357 4 537
St. Regis 2 498 2 498 1 160 1 160 1 99 1 99 4 757
Le Meridien
Aloft
Element
Tribute Portfolio
Other 1 135 1 135 1 135
Total Owned 19 9,843 11 6,297 8 3,546 3 703 3 703 9 1,650 9 1,650 31 12,196
 
Managed & UJV
Sheraton 46 26,645 28 22,716 18 3,929 102 38,681 70 30,015 32 8,666 68 20,092 40 11,543 28 8,549 216 85,418
Westin 53 26,974 50 26,088 3 886 39 12,863 21 7,250 18 5,613 17 5,284 10 3,416 7 1,868 109 45,121
Four Points 5 672 1 134 4 538 36 9,778 23 6,752 13 3,026 13 2,574 4 509 9 2,065 54 13,024
W 27 8,052 23 7,295 4 757 10 2,741 4 1,464 6 1,277 6 1,109 5 667 1 442 43 11,902
Luxury Collection 11 2,514 5 2,294 6 220 13 2,636 7 1,464 6 1,172 26 4,649 20 2,911 6 1,738 50 9,799
St. Regis 12 2,321 9 1,873 3 448 11 3,095 7 2,059 4 1,036 9 2,015 4 614 5 1,401 32 7,431
Le Meridien 5 879 4 719 1 160 33 8,629 9 3,130 24 5,499 38 11,866 12 4,178 26 7,688 76 21,374
Aloft 2 450 1 330 1 120 14 3,416 11 2,446 3 970 6 1,292 5 884 1 408 22 5,158
Element 1 180 1 180 1 188 1 188 2 368
Tribute Portfolio 2 372 2 372 2 372
Other 1 87 1 87 1 87
Total Managed & UJV 162 68,687 122 61,629 40 7,058 261 82,399 153 54,768 108 27,631 184 48,968 100 24,722 84 24,246 607 200,054
 
Franchised
Sheraton 178 51,895 162 48,004 16 3,891 12 5,830 3 1,836 9 3,994 26 6,440 23 5,862 3 578 216 64,165
Westin 79 25,638 72 23,348 7 2,290 8 2,531 1 288 7 2,243 8 2,439 8 2,439 95 30,608
Four Points 140 21,249 125 19,152 15 2,097 11 1,806 2 457 9 1,349 10 1,629 10 1,629 161 24,684
W
Luxury Collection 14 2,495 10 2,009 4 486 12 3,211 12 3,211 17 2,651 17 2,651 43 8,357
St. Regis
Le Meridien 17 3,864 16 3,753 1 111 5 1,209 1 160 4 1,049 4 869 4 869 26 5,942
Aloft 80 12,021 75 11,108 5 913 6 1,001 6 1,001 1 116 1 116 87 13,138
Element 18 2,706 18 2,706 2 293 2 293 20 2,999
Tribute Portfolio 3 2,412 3 2,412 1 91 1 91 4 2,503
Other 3 650 3 650 3 650
Total Franchised 532 122,930 484 113,142 48 9,788 54 15,588 7 2,741 47 12,847 69 14,528 66 13,950 3 578 655 153,046
 
Systemwide
Sheraton 233 84,327 195 74,043 38 10,284 115 44,808 73 31,851 42 12,957 96 26,890 65 17,763 31 9,127 444 156,025
Westin 137 55,346 124 51,268 13 4,078 48 15,640 22 7,538 26 8,102 26 7,894 19 6,026 7 1,868 211 78,880
Four Points 145 21,921 126 19,286 19 2,635 47 11,584 25 7,209 22 4,375 23 4,203 14 2,138 9 2,065 215 37,708
W 28 8,561 24 7,804 4 757 10 2,741 4 1,464 6 1,277 8 1,774 7 1,332 1 442 46 13,076
Luxury Collection 26 5,189 15 4,303 11 886 25 5,847 7 1,464 18 4,383 46 7,657 40 5,919 6 1,738 97 18,693
St. Regis 14 2,819 11 2,371 3 448 12 3,255 7 2,059 5 1,196 10 2,114 5 713 5 1,401 36 8,188
Le Meridien 22 4,743 20 4,472 2 271 38 9,838 10 3,290 28 6,548 42 12,735 16 5,047 26 7,688 102 27,316
Aloft 82 12,471 76 11,438 6 1,033 20 4,417 11 2,446 9 1,971 7 1,408 6 1,000 1 408 109 18,296
Element 19 2,886 19 2,886 1 188 1 188 2 293 2 293 22 3,367
Tribute Portfolio 3 2,412 3 2,412 2 372 2 372 1 91 1 91 6 2,875
Other 4 785 4 785 1 87 1 87 5 872
Vacation Ownership 15 7,638 14 7,058 1 580 15 7,638
Total Systemwide 728 209,098 631 188,126 97 20,972 318 98,690 160 57,509 158 41,181 262 65,146 175 40,322 87 24,824 1,308 372,934
 
 

STARWOOD HOTELS & RESORTS WORLDWIDE, INC.

Vacation Ownership Inventory Pipeline

As of March 31, 2016

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   7   3,111     901   4,012
Westin 10 9 10 1,698 438 21 2,157
St. Regis 2 2 56 56
The Luxury Collection 1 1 6 6
Unbranded   2   2   1   99       99
Total SVO, Inc.   22   21   18   4,970   438   922   6,330

Unconsolidated Joint Ventures

   (UJV's)

  1   1   1   198       198
Total including UJV's   23   22   19   5,168   438   922   6,528
Total Intervals Including UJV's (7)   268,736   22,776   47,944   339,456
 



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