Starwood Reports Sharp Drop in Third Quarter Net

Starwood Hotels & Resorts Worldwide, Inc. reported a 64 percent decline in income from continuing operations. Income for the third quarter was $41 million compared to $113 million in 2008.

RevPAR for Starwood’s hotel brands also was down significantly. Excluding special items, income from continuing operations was $26 million in the third quarter of 2009 compared to $129 million in 2008. Net income was $40 million and EPS was $0.22 in the third quarter of 2009 compared to $113 million and EPS of $0.62 in the third quarter of 2008.

Worldwide system-wide RevPAR for Same-Store Hotels decreased 20.3 percent (down 17.6 percent in constant dollars) compared to the third quarter of 2008. International System-wide RevPAR for Same-Store Hotels decreased 21 percent (down 16 percent in constant dollars).

Worldwide System-wide RevPAR decreases by region were: 17.9 percent in Africa and the Middle East, 18.6 percent in Asia Pacific, 19.7 percent in North America, 22.1 percent in Europe and 31.3 percent in Latin America.

Worldwide comparable company-operated gross operating profit margins declined approximately 400 basis points in the third quarter driven by RevPAR declines partially offset by continued cost-cutting efforts at the property level.

International gross operating profit margins for comparable company-operated properties declined approximately 260 basis points, and North American comparable company-operated gross operating profit margins declined approximately 560 basis points.