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Press Release: Starwood Hotels & Resorts Worldwide, Inc.
October 25, 2002
WHITE PLAINS, NY -- Starwood Hotels & Resorts Worldwide, Inc. (NYSE: HOT; "Starwood" or the "Company")
yesterday reported results for the third quarter of 2002.
Third Quarter Financial Results
Third Quarter Ended September 30, 2002
EPS was $0.26, excluding special items of approximately $2 million (after-tax), an increase of 62.5% compared to
EPS of $0.16 in 2001, which excluded $3 million (after-tax) of special items. EPS, including these special items,
was also $0.26 in 2002, an increase of 85.7% compared to $0.14 in 2001. Total revenues increased $5 million to
$970 million when compared to the same period of 2001. Operating income was $130 million compared to $135 million
in the same period of 2001 and income from continuing operations was $52 million as compared to $30 million in
the same period of 2001. Results continued to be adversely impacted by the weakened worldwide economic environment.
Results benefited from a reduced tax rate and from a $16 million after-tax reduction in goodwill amortization as
a result of a new accounting rule pertaining to goodwill and intangible assets that became effective on January
1, 2002, offset by an increase in depreciation expense of $15 million pretax or 13.8% when compared to the third
quarter of 2001 due to prior year's renovation programs, the repositioning and acquisition of certain hotels and
investments in technology.
Nine Months Ended September 30, 2002
For the nine months ended September 30, 2002, total revenues were $2.9 billion when compared to $3.1 billion in
the same period in 2001. EPS excluding net benefits for special items of $4 million (after-tax) in 2002 and net
charges of $8 million (after-tax) in 2001 was $0.76, compared to EPS of $1.00 in the corresponding period in 2001.
EPS including these special items was $0.78 compared to $0.96 in 2001 and EPS including discontinued operations
was $1.29 compared to $0.96 in 2001. Income from continuing operations decreased to $160 million compared to $199
million in the same period of 2001.
Comments from the CEO
Barry S. Sternlicht, Chairman and CEO said, "The global economic environment is challenging as business and
trans-oceanic travel remain depressed. In the third quarter, the absence of these sectors hit our urban portfolio
particularly hard. Given the uncertainty, we are more focused than ever on the risks and rewards of our capital
and investment spend, and managing our cost structure as we enter 2003. As booking patterns remain short and transient
demand is buffeted by news events, we expect to drive earnings and cash flow through additional cost containment
and strategic spend while we continue to strengthen our brands. Though we are not pleased with every brand's performance
in the quarter, our overall company market share actually increased slightly since December of 2001."
"To that end, in mid-September we introduced the Sheraton Service Promise where we guarantee customer satisfaction
to wide customer acclaim. Though it's too early to draw firm conclusions, in the first three weeks of October,
Sheraton's REVPAR index has improved 200 basis points."
Concluding, Mr. Sternlicht said, "With our recent internal reorganization into essentially a real estate and
an operating company, we are more committed than ever to unlocking the considerable value in our asset base through
increased divestitures and careful investment spending. A significant bright spot for our company is our rapid
expansion of our distribution base across Asia where this year alone we have signed 10 full service hotel agreements
in addition to our sector leading 85 operating hotels. We expect to increase that pace of growth across all our
brands going into 2003 with minimal capital investment."
Operating Results
At the Company's Comparable Owned Hotels worldwide, revenues for the third quarter of 2002 decreased approximately
$15 million to $775 million from $790 million in 2001 and EBITDA for the period decreased 6.2% to $211 million
from $225 million in 2001. EBITDA at the Company's Comparable Owned Hotels in North America decreased 7.4% to $132
million in the third quarter of 2002 when compared to the same period of 2001. EBITDA at the Company's Comparable
Owned Hotels internationally decreased 4.1% to approximately $80 million in the third quarter of 2002 when compared
to the same period of 2001. The positive effects of foreign exchange in Europe and Asia Pacific were offset by
the devaluation of currencies in South America. Excluding the effects of foreign exchange, EBITDA at the Company's
Comparable Owned Hotels internationally decreased 7.2% in the third quarter of 2002 when compared to the same period
in 2001. The decline in operating results at Comparable Owned Hotels when compared to 2001 reflects the impact
of lower REVPAR primarily attributable to the weakened global economies.
REVPAR at Same-Store Owned Hotels worldwide decreased 2.4% in the third quarter of 2002 when compared to the same
period of 2001 as a result of a decline in occupancy rates of 40 basis points to 65.5% and a decline in ADR of
1.7% from the prior year. REVPAR at Same-Store Owned Hotels in North America decreased 2.7% to $91.42 when compared
to the same period of 2001 as a result of a decrease in ADR of 4.0% to $134.90, offset by increases in occupancy
rates to 67.8% from 66.9% in the prior year. REVPAR at system-wide hotels (Same-Store Owned, managed and franchised)
in North America decreased 1.7% when compared to the same period of 2001 as a result of a decrease in ADR of 4.2%
offset by increases in occupancy rates to 66.2% from 64.5%. Internationally, Same-Store Owned Hotel REVPAR decreased
1.4%, with Europe up 3.7% and Asia Pacific up 7.4% offset by declines in Latin America of 24.2% when compared to
2001.
EBITDA margins at Comparable Owned Hotels worldwide were 27.3% in the third quarter of 2002 when compared to 28.5%
in the same period of 2001. In North America, EBITDA margins at Comparable Owned Hotels were 24.3% when compared
to 25.7% in the same period of 2001. Internationally, EBITDA margins at Comparable Owned Hotels were 34.1% when
compared to 35.0% in the same period of 2001.
During the third quarter of 2002, the Company signed seven management and franchise contracts representing more
than 2,500 rooms. New hotel openings in the fourth quarter of 2002 include: the Sheraton Wild Horse Pass (approximately
500 rooms) in Phoenix, Arizona; the Westin Kierland Resort & Spa in Scottsdale, Arizona (approximately 750
rooms); the Westin Times Square (approximately 863 rooms) in New York; the W San Diego (approximately 260 rooms)
in California; the Sheraton Overland Park Hotel (approximately 412 rooms) in Overland Park, Kansas; the Westin
Detroit Airport Hotel (approximately 404 rooms) in Detroit, Michigan; the Hotel Bora Bora Nui (approximately 120
rooms), a Luxury Collection Hotel, in French Polynesia; the Westin Shanghai (approximately 450 rooms) in Shanghai,
China and the Sheraton Krabi Beach resort (approximately 246 rooms) in Krabi, Thailand. Including these properties,
through the end of 2003, the Company expects 50 new full service hotels and resorts around the world, with approximately
115,000 rooms to commence operations.
Starwood Vacation Ownership, Inc. ("SVO") is currently selling VOI inventory at ten resorts and engaged
in pre-opening sales at two others currently under construction (Westin Mission Hills Resort Villas in Rancho Mirage,
California and Westin Ka`anapali Ocean Resort Villas in Maui, Hawaii). Contract sales in the third quarter increased
approximately 22.4% when compared to the same period in 2001 and sales were particularly strong at the Maui and
Mission Hills resorts. SVO will begin construction of its fourth Westin-branded interval ownership resort later
this year featuring 158 villas located adjacent to the Westin Kierland Resort & Spa in Scottsdale, Arizona.
SVO sold, on a non-recourse basis, approximately $24 million of notes receivable originated by the vacation ownership
operations in the third quarter of 2002, recognizing a pretax gain of $3 million in operating income compared to
a gain of $3 million in the third quarter of 2001.
Dispositions
The Company continues to review its portfolio for disposition candidates, placing additional emphasis on its domestic
portfolio. In July 2002, the Company signed a letter of intent to sell its assets in Sardinia, Italy, part of the
CIGA portfolio of luxury hotels and resorts, to a consortium of Italian investors. The Company is continuing such
negotiations and has commenced discussions with other potential purchasers for these and other CIGA assets.
Capital
During the third quarter of 2002, the Company invested approximately $112 million in hotel and VOI capital assets,
including VOI construction at Westin Mission Hills Resort Villas in Rancho Mirage, California and Westin Ka`anapali
Ocean Resort Villas in Maui, Hawaii, the acquisition of 18.5 acres of zoned land for a new Westin timeshare development
in Princeville, Hawaii, as well as the ongoing development of the St. Regis Museum Tower in San Francisco (269
rooms and 102 condominiums). Progress also continues on the flexible new build Sheraton and Westin prototypes,
details of which were recently unveiled. Other major projects included the renovation of approximately 370 rooms
at the Sheraton New York, the Westin Excelsior in Rome, Italy, the Westin Galleria and Oaks in Houston, Texas the
Phoenician in Scottsdale, Arizona and the roll out of the Sheraton Sweet Sleeper bed. Additionally, the Company
spent approximately $25 million to acquire an interest in the Westin Savannah Harbor Resort and Spa in Savannah,
Georgia.
Financing
On September 30, 2002, the Company had total debt of $5.347 billion and cash and cash equivalents of $229 million,
or net debt of $5.118 billion, compared to net debt of $5.301 billion at the end of the second quarter of 2002.
Following the end of the third quarter, the Company refinanced its senior credit facility, which consisted of a
$1.1 billion revolving credit facility and a $174 million term loan and was scheduled to mature in February 2003.
The new credit facility is a four-year facility (with a one-year extension option) comprised of a $1.0 billion
revolving credit facility and a $300 million term loan, each bearing an initial interest rate of LIBOR +1.625%.
Giving effect to the refinancing, at the end of the third quarter of 2002, the Company's debt was approximately
56% fixed rate and 44% floating rate and its weighted average maturity was 6.4 years. As of September 30, 2002,
the Company had cash and availability under its domestic and international revolving credit facilities of approximately
$843 million and the Company's debt had a weighted average interest rate of 5.86% (assuming the refinancing had
occurred as of September 30, 2002). The Company expects to record approximately $2 million in early debt extinguishment
costs in the fourth quarter of 2002 related to this refinancing.
In September 2002, the Company terminated its existing fixed-to-floating interest rate swaps and immediately entered
into new fixed-to-floating interest rate swaps on the same underlying debt. This resulted in a $78 million cash
payment to the Company, which was used to pay down debt outstanding under the Company's revolving credit facility.
At September 30, 2002, Starwood had approximately 203 million shares outstanding (including partnership units and
exchangeable preferred shares).
Dividend
In 2002, the Company has shifted from a quarterly dividend to an annual dividend. The final determination of the
amount of the dividend will be subject to economic and financial considerations and Board approval in the fourth
quarter of 2002. At this time, the Company expects the annual dividend to be $0.84 per share.
Special Items
The Company recorded charges of $8 million (pretax) offset by credits of $8 million (pretax) for special items
in the third quarter of 2002 when compared to net charges of $5 million (pretax) in the same period of 2001.
The net charges in the third quarter of 2002 primarily represent $5 million of estimated costs (before any recovery
from insurance and other claims) associated with construction remediation at an unconsolidated joint venture and
$3 million (pretax) foreign exchange loss in Argentina, offset by a net $6 million (pretax) gain from the sale
of investments primarily related to a gain on the sale of Starwood's investment in Interval International, a timeshare
exchange company.
The following represents a reconciliation of income from continuing operations before special items to income from
continuing operations after special items (in millions, except per share data):
Three Months Ended Nine Months Ended
September 30, September 30,
-------------------- -------------------------
2002 2001 2002 2001
-------------------- -------------------------
Income from continuing
operations excluding
$ 54 $ 33 special items $ 156 $ 207
-------------------- -------------------------
EPS excluding
$ 0.26 $ 0.16 special items $ 0.76 $ 1.00
-------------------- -------------------------
Special Items:
Restructuring and other
special credits
2(a) (4)(b) (charges), net 5(a) (3)(b)
Gain (loss) on asset
6(c) (1) dispositions 2(c) -
Foreign exchange gain
(3) - (loss) from Argentina(d) 30 -
Debt extinguishment
- - costs(e) (29) (9)
Estimated costs associated
with construction
(5) - remediation (f) (5) -
- - State tax refund 6 -
--------------------- ----------------------
Total special items
- (5) - pretax 9 (12)
Income tax benefit
(2) 2 (expense) (g) (5) 4
------------------------ ----------------------
Total special items
(2) (3) - after-tax 4 (8)
------------------------ ----------------------
Income from continuing
52 30 operations 160 199
------------------------ ----------------------
EPS including
$ 0.26 $ 0.14 special items $ 0.78 $ 0.96
------------------------ -----------------------
(a) During the first and third quarters of 2002, the Company sold
its investments in certain e-business ventures previously
deemed impaired; throughout the first nine months of 2002, the
Company collected receivables, which were previously deemed
uncollectible. Accordingly, the previously recorded impairment
reserves associated with these assets were reversed.
(b) During the first quarter of 2001, the Company wrote-down its
investments in various e-business ventures by approximately
$19 million based on the market conditions for the technology
sector at the time and management's assessment that these
investments were permanently impaired; this charge was offset
by the reversal of a $20 million bad debt restructuring charge
taken in 1998 relating to a note receivable which is now fully
performing. During the third quarter of 2001, the Company
recorded $4 million of charges primarily related to severance
and other costs incurred as a result of the Company's
immediate cost containment efforts after the September 11th
attacks.
(c) Represents a gain on sale recorded in the third quarter of
2002 in connection with the sale of the Company's investment
in Interval International. On a year-to-date basis, this gain
is offset, in part, by an impairment charge recorded in the
first quarter of 2002 to reduce the carrying value of a hotel
to its fair market value, which was sold in the second quarter
of 2002.
(d) Amount is reflected in selling, general, administrative and
other expenses and represents foreign exchange losses and
gains resulting from the initial devaluation of the Argentine
Peso and subsequent rate volatility.
(e) Balance is reflected in interest expense and represents costs
related to the early extinguishment of debt in 2001 and 2002
and the unwinding of associated interest-rate swap for 2002.
(f) Amount is reflected as a reduction to other hotel and leisure
revenues and represents the Company's estimated share of costs
for construction remediation efforts at a property owned by an
unconsolidated joint venture.
(g) All special items are taxed at a 35% incremental tax rate with
the exception of the construction remediation charge which is
not tax-effected because the joint venture is in a tax-exempt
jurisdiction.
Future Performance
All comments in the following paragraphs and certain comments in this release above are deemed to be forward-looking
statements. These statements reflect expectations of the Company's performance given its current base of assets
and its current understanding of external economic and political environments. Actual results may differ materially.
The weakness in North American and European economies, combined with the current political environment in South
America, the Middle East and other parts of the world and their consequent impact on travel in their respective
regions and on the rest of the world, make it difficult to predict future results with any degree of precision.
The Company currently expects full year 2002 REVPAR to decline 5-6% from 2001 levels, full-year EBITDA of approximately
$1.090 to $1.110 billion and EPS of approximately $0.95 to $1.00 with an effective tax rate of approximately 15%,
which is predicated on a dividend in 2002 of $0.84 per share. Based on these assumptions and assuming no further
asset sales for modeling purposes, approximate quarterly EPS for 2002 is expected to be as follows:
2002
-----------------------
First quarter (actual)........... $ 0.08
Second quarter (actual).......... $ 0.41
Third quarter (actual)........... $ 0.26
Fourth quarter (estimate)........ $0.20-0.25
-----------------------
Full year (estimate)............. $0.95-1.00
=======================
Starwood conducted a conference call to discuss the third quarter financial results at 10:30 a.m. (ET) yesterday.
A replay of the conference call will be available through 8:00 p.m. (ET) Thursday, October 31, on both the Company's
website and via telephone replay at 719-457-0820 (access code: 212820).
All references to EPS, unless otherwise noted, reflect earnings per diluted share from continuing operations excluding
special items. All references to total revenues exclude other revenues from managed and franchised properties.
All references to total Company EBITDA and EBITDA margins exclude other revenues and expenses from managed and
franchised properties. All references to Comparable Owned Hotels reflect the Company's owned, leased and consolidated
joint venture hotels, excluding hotels sold during 2001 and 2002 and hotels without comparable prior year results.
All references to Same-Store Owned Hotels reflect the Company's owned, leased and consolidated joint venture hotels,
excluding hotels under significant renovation or for which comparable results are not available. REVPAR is defined
as revenue per available room. ADR is defined as average daily rate.
Starwood Hotels & Resorts Worldwide, Inc. is one of the leading hotel and leisure companies in the world with
more than 750 properties in more than 80 countries and 110,000 employees at its owned and managed properties. With
internationally renowned brands, Starwood is a fully integrated owner, operator and franchisor of hotels and resorts
including: St. Regis®, The Luxury Collection®, Sheraton®, Westin®, Four Points® by Sheraton,
W® brands, as well as Starwood Vacation Ownership, Inc., one of the premier developers and operators of high
quality vacation interval ownership resorts. For more information, please visit www.starwood.com
(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. General economic conditions including the duration and severity of the current global economic
downturn, the hospitality industry's pace of recovery from the terrorist attacks in New York, Washington, D.C.
and Pennsylvania and their aftermath, business and financing conditions, cyclicality of the real estate and the
hotel and leisure business, operating risks associated with the hotel and leisure business, relationships with
customers and property owners, domestic and international political and geopolitical conditions, competition, governmental
and regulatory actions, risk associated with the level of our indebtedness, and other circumstances and uncertainties
may affect future results, performance and achievements. These risks and uncertainties are presented in detail
in our filings with the Securities and Exchange Commission. Although we believe the expectations reflected in such
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.)
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
(In millions, except per Share data)
Three Months Ended Nine Months Ended
September 30, September 30,
-------------------------- ---------------------------
2002 2001 % 2002 2001 %
Variance Variance
-------------------------- ---------------------------
Revenues
Owned, leased and
consolidated joint
$ 806 $ 802 0.5 venture hotels $ 2,418 $ 2,597 (6.9)
Other hotel and
164 163 0.6 leisure(a) 478 492 (2.8)
-------------------------- ---------------------------
970 965 0.5 2,896 3,089 (6.2)
Other revenues
from managed and
franchised
187 182 2.7 properties(b) 589 574 2.6
-------------------------- ---------------------------
1,157 1,147 0.9 3,485 3,663 (4.9)
Costs and Expenses
Owned, leased and
consolidated joint
589 576 (2.3) venture hotels 1,759 1,790 1.7
Selling, general,
administrative
123 116 (6.0) and other(c) 318 323 1.5
Restructuring and
other special charges
(2) 4 150.0 (credits), net (5) 3 266.7
124 109 (13.8) Depreciation 352 321 (9.7)
6 25 76.0 Amortization 16 70 77.1
----------------------- -------------------------
840 830 (1.2) 2,440 2,507 2.7
Other expenses
from managed and
franchised
187 182 (2.7) properties(b) 589 574 (2.6)
--------------------------- -----------------------------
1,027 1,012 (1.5) 3,029 3,081 1.7
--------------------------- -----------------------------
130 135 (3.7) Operating income 456 582 (21.6)
Interest expense,
net of interest
(81) (89) 9.0 income(d) (271) (290) 6.6
Gain (loss) on asset
6 (1) 700.0 dispositions, net 2 - -
------------------------ -------------------------------
55 45 22.2 187 292 (36.0)
(3) (14) 78.6 Income tax expense (27) (90) 70.0
Minority equity
- (1) - in net income - (3) -
----------------------- --------------------------------
Income from
continuing
52 30 73.3 operations 160 199 (19.6)
Discontinued
- - - operations 104 - -
---------------------- --------------------------------
$ 52 $ 30 73.3 Net income $ 264 $ 199 32.7
====================== ================================
Earnings Per
Share -- Basic
Continuing
$ 0.26 $ 0.15 73.3 operations $ 0.80 $ 0.99 (19.2)
Discontinued
- - - operations 0.51 - -
---------------------- --------------------------------
$ 0.26 $ 0.15 73.3 Net income $ 1.31 $ 0.99 32.3
====================== ================================
Earnings Per
Share -- Diluted
Continuing
$ 0.26 $ 0.14 85.7 operations $ 0.78 $ 0.96 (18.8)
Discontinued
- - - operations 0.51 - -
--------------------- --------------------------------
$ 0.26 $ 0.14 85.7 Net income $ 1.29 $ 0.96 34.4
===================== ================================
Weighted average
201 200 number of Shares 201 201
============== ==================
Weighted average
number of Shares
204 206 assuming dilution 205 207
============== ==================
=========== =========
Reconciliation of
Operating Income
to EBITDA(e)
$ 130 $ 135 (3.7) Operating income $ 456 $ 582 (21.6)
130 116 12.1 Depreciation(f) 369 341 8.2
6 25 (76.0) Amortization(f) 16 70 (77.1)
Interest expense of
unconsolidated joint
4 6 (33.3) ventures 12 19 (36.8)
- 2 - Interest income 1 9 (88.9)
Restructuring and other
special charges
(2) 4 (150.0) (credits), net (5) 3 (266.7)
Foreign exchange
loss (gain) from
3 - - Argentina (30) - -
5 - - Estimated construction
remediation 5 - -
--------------------- ---------------------------
$ 276 $ 288 (4.2) EBITDA $ 824 $ 1,024 (19.5)
===================== ============================
(a) Other hotel and leisure revenues include management and
franchise fees earned from third party hotel owners, the
Company's interest in unconsolidated joint ventures and the
sale and financing of VOIs.
(b) In accordance with a Financial Accounting Standards Board
staff announcement, the Company has included in revenues the
reimbursement of costs incurred on behalf of managed hotel
property owners and franchisees and included in costs and
expenses these reimbursed costs. These costs relate primarily
to payroll costs at managed properties where the Company is
the employer. Since the reimbursements made are based upon
costs incurred with no added margin, the adoption of this
guidance has no effect on operating income, total or per Share
net income, cash flows or the financial position of the
Company.
(c) Selling, general, administrative and other expenses includes
the cost of sales of VOIs and other costs of vacation
ownership operations.
(d) Interest expense includes early debt extinguishment costs of
$29 million and $9 million, respectively, in the nine months
ended September 30, 2002 and 2001, as a result of the
Company's early adoption of Statement of Financial Accounting
Standards No. 145.
(e) EBITDA is defined as income before interest expense, income
tax expense and depreciation and amortization. Special items
and gains and losses from asset dispositions are also excluded
from EBITDA as these items do not impact operating results on
a recurring basis. Management considers EBITDA to be one
measure of the cash flows from operations of the Company
before debt service that provides a relevant basis for
comparison, and EBITDA is presented to assist investors in
analyzing the performance of the Company. This information
should not be considered as an alternative to any measure of
performance as promulgated under accounting principles
generally accepted in the United States, nor should it be
considered as an indicator of the overall financial
performance of the Company. The Company's calculation of
EBITDA may be different from the calculation used by other
companies and, therefore, comparability may be limited.
(f) Includes Starwood's share of depreciation and amortization
expense of unconsolidated joint ventures.
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
UNAUDITED BALANCE SHEET INFORMATION
(In millions)
September 30,
2002
----------------
Total assets $ 12,232
Cash and cash equivalents $ 229
Total debt(a) $ 5,347
Shares outstanding(b) 203
(a) Excludes Starwood's share of unconsolidated joint venture debt
aggregating approximately $342 million.
(b) Shares outstanding include partnership units and exchangeable
preferred shares.
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Hotel Results - Same Store(1)
For the Quarter Ended September 30, 2002
UNAUDITED
WORLDWIDE NORTH AMERICA
2002 2001 Var. 2002 2001 Var.
---- ---- ---- ---- ---- ----
160 Hotels 111 Hotels
---------- -------------
OWNED HOTELS
REVPAR ($) 97.08 99.42 -2.4% 91.42 94.00 -2.7%
ADR ($) 148.24 150.81 -1.7% 134.90 140.57 -4.0%
OCCUPANCY (%) 65.5% 65.9% -0.4 67.8% 66.9% 0.9
69 45
--------- -----------
SHERATON
REVPAR ($) 77.89 84.80 -8.1% 81.68 88.27 -7.5%
ADR ($) 123.48 130.38 -5.3% 122.26 130.74 -6.5%
OCCUPANCY(%) 63.1% 65.0% -1.9 66.8% 67.5% -0.7
36 23
--------- -----------
WESTIN
REVPAR ($) 105.59 103.57 2.0% 94.79 92.39 2.6%
ADR ($) 151.15 152.32 -0.8% 133.34 136.17 -2.1%
OCCUPANCY(%) 69.9% 68.0% 1.9 71.1% 67.8% 3.3
16 5
----------- ------------
LUXURY COLLECTION
REVPAR ($) 223.58 220.90 1.2% 148.10 164.54 -10.0%
ADR ($) 406.41 352.03 15.4% 296.11 287.65 2.9%
OCCUPANCY(%) 55.0% 62.8% -7.8 50.0% 57.2% -7.2
10 10
------------ -------------
W
REVPAR ($) 123.56 124.12 -0.5% 123.56 124.12 -0.5%
ADR ($) 187.00 187.19 -0.1% 187.00 187.19 -0.1%
OCCUPANCY(%) 66.1% 66.3% -0.2 66.1% 66.3% -0.2
29 28
--------------- --------------
OTHER
REVPAR ($) 80.84 77.76 4.0% 83.29 80.27 3.8%
ADR ($) 114.18 116.76 -2.2% 118.43 121.39 -2.4%
OCCUPANCY(%) 70.8% 66.6% 4.2 70.3% 66.1% 4.2
INTERNATIONAL(2)
2002 2001 Var.
---- ---- ----
49 Hotels
-----------
OWNED HOTELS
REVPAR ($) 114.29 115.89 -1.4%
ADR ($) 195.15 183.80 6.2%
OCCUPANCY (%) 58.6% 63.1% -4.5
24
-----------
SHERATON
REVPAR ($) 69.24 76.87 -9.9%
ADR ($) 126.91 129.44 -2.0%
OCCUPANCY(%) 54.6% 59.4% -4.8
13
-----------
WESTIN
REVPAR ($) 145.35 144.73 0.4%
ADR ($) 222.56 211.16 5.4%
OCCUPANCY(%) 65.3% 68.5% -3.2
11
------------
LUXURY COLLECTION
REVPAR ($) 294.42 273.87 7.5%
ADR ($) 493.12 402.94 22.4%
OCCUPANCY(%) 59.7% 68.0% -8.3
W
REVPAR ($)
ADR ($)
OCCUPANCY(%)
1
-------------
OTHER
REVPAR ($) 55.71 51.95 7.2%
ADR ($) 73.63 72.78 1.2%
OCCUPANCY(%) 75.7% 71.4% 4.3
(1) Hotel Results exclude 1 hotel under significant renovation or
without comparable results, 3 hotels without prior year
results and 2 hotels sold during 2001 and 2002.
(2) See next page for breakdown by division.
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Hotel Results - Same Store(1)
For the Quarter Ended September 30, 2002
UNAUDITED
EUROPE LATIN AMERICA
-----------------------------------------------------------
2002 2001 Var. 2002 2001 Var.
---- ---- ---- ---- ---- ----
33 Hotels 13 Hotels
------------ ------------
OWNED HOTELS
REVPAR ($) 171.60 165.51 3.7% 45.92 60.60 -24.2%
ADR ($) 269.78 240.66 12.1% 95.27 112.88 -15.6%
OCCUPANCY(%) 63.6% 68.8% -5.2 48.2% 53.7% -5.5
12 10
-------------- -------------
SHERATON
REVPAR ($) 101.04 101.67 -0.6% 43.40 59.13 -26.6%
ADR ($) 159.50 148.61 7.3% 94.73 114.83 -17.5%
OCCUPANCY (%)63.3% 68.4% -5.1 45.8% 51.5% -5.7
10 3
------------------ ----------------
WESTIN
REVPAR ($) 178.33 173.95 2.5% 58.71 68.02 -13.7%
ADR ($) 265.33 248.58 6.7% 97.34 105.02 -7.3%
OCCUPANCY (%)67.2% 70.0% -2.8 60.3% 64.8% -4.5
11
----------------
LUXURY COLLECTION
REVPAR ($) 294.42 273.87 7.5%
ADR ($) 493.12 402.94 22.4%
OCCUPANCY(%) 59.7% 68.0% -8.3
OTHER
REVPAR ($)
ADR ($)
OCCUPANCY (%)
ASIA PACIFIC
------------------------------
2002 2001 Var.
---- ---- ----
3 Hotels
----------------
OWNED HOTELS
REVPAR ($) 65.42 60.94 7.4%
ADR ($) 95.12 91.30 4.2%
OCCUPANCY(%) 68.8% 66.7% 2.1
2
--------------
SHERATON
REVPAR ($) 72.87 67.84 7.4%
ADR ($) 114.76 107.40 6.9%
OCCUPANCY (%) 63.5% 63.2% 0.3
WESTIN
REVPAR ($)
ADR ($)
OCCUPANCY (%)
LUXURY COLLECTION
REVPAR ($)
ADR ($)
OCCUPANCY(%)
1
------------------
OTHER
REVPAR ($) 55.71 51.95 7.2%
ADR ($) 73.63 72.78 1.2%
OCCUPANCY (%) 75.7% 71.4% 4.3
(1) Hotel Results exclude 1 hotel under significant renovation or
without comparable results, 3 hotels without prior year
results and 2 hotels sold during 2001 and 2002.
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Hotel Results - Comparable (1)
For the Quarter Ended September 30, 2002
UNAUDITED ($thousands)
WORLDWIDE NORTH AMERICA
--------- -----------------
2002 2001 Var. 2002 2001 Var.
--------- -------- ------- -------- -------- -----
161 111
Hotels Hotels
----------------------- -----------------------
OWNED HOTELS
Total
REVENUE 774,853 789,839 -1.9% 540,757 551,884 -2.0%
Total
EBITDA 211,485 225,417 -6.2% 131,597 142,074 -7.4%
MARGIN
% 27.3% 28.5% -1.2 24.3% 25.7% -1.4
70 45
------------------------- ------------------------
SHERATON
REVENUE 305,469 328,297 -7.0% 213,856 226,891 -5.7%
EBITDA 82,075 99,365 -17.4% 55,645 67,447 -17.5%
MARGIN
% 26.9% 30.3% -3.4 26.0% 29.7% -3.7
36 23
------------------------- ------------------------
WESTIN
REVENUE 213,481 209,274 2.0% 148,090 144,355 2.6%
EBITDA 58,986 54,222 8.8% 38,370 32,705 17.3%
MARGIN
% 27.6% 25.9% 1.7 25.9% 22.7% 3.2
16 5
------------------------- ------------------------
LUXURY
COLLECTION
REVENUE 119,552 117,431 1.8% 47,242 50,232 -6.0%
EBITDA 36,878 36,345 1.5% 3,842 6,273 -38.8%
MARGIN
% 30.8% 31.0% -0.2 8.1% 12.5% -4.4
10 10
------------------------- ------------------------
W
REVENUE 54,532 55,371 -1.5% 54,532 55,371 -1.5%
EBITDA 10,308 12,179 -15.4% 10,308 12,179 -15.4%
MARGIN
% 18.9% 22.0% -3.1 18.9% 22.0% -3.1
29 28
------------------------- ------------------------
OTHER
REVENUE 81,819 79,466 3.0% 77,037 75,035 2.7%
EBITDA 23,238 23,306 -0.3% 23,432 23,470 -0.2%
MARGIN
% 28.4% 29.3% -0.9 30.4% 31.3% -0.9
INTERNATIONAL(2)
-----------------
2002 2001 Var.
-------- -------- ------
50
Hotels
------------------------
OWNED HOTELS
Total
REVENUE 234,096 237,955 -1.6%
Total
EBITDA 79,888 83,343 -4.1%
MARGIN
% 34.1% 35.0% -0.9
25
----------------------------
SHERATON
REVENUE 91,613 101,406 -9.7%
EBITDA 26,430 31,918 -17.2%
MARGIN
% 28.8% 31.5% -2.7
13
----------------------------
WESTIN
REVENUE 65,391 64,919 0.7%
EBITDA 20,616 21,517 -4.2%
MARGIN
% 31.5% 33.1% -1.6
11
----------------------------
LUXURY
COLLECTION
REVENUE 72,310 67,199 7.6%
EBITDA 33,036 30,072 9.9%
MARGIN
% 45.7% 44.8% 0.9
0
W
REVENUE 0 0 n/a
EBITDA 0 0 n/a
MARGIN
% n/a n/a n/a
1
----------------------------
OTHER
REVENUE 4,782 4,431 7.9%
EBITDA (194) (164) -18.3%
MARGIN
% -4.1% -3.7% -0.4
(1) Hotel Results exclude 3 hotels without prior year results and
2 hotels sold during 2001 and 2002.
(2) See next page for breakdown by division.
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Hotel Results - Comparable (1)
For the Quarter Ended September 30, 2002
UNAUDITED ($thousands)
LATIN ASIA
EUROPE AMERICA PACIFIC
-------- -------- --------
2002 2001 Var. 2002 2001 Var. 2002 2001 Var.
--------------------------------------------------------------
33 13 4
Hotels Hotels Hotels
--------------------------------------------------------------
OWNED HOTELS
Total
REVENUE 179,786 172,392 4.3% 36,767 49,846 -26.2% 17,543 15,717 11.6%
Total
EBITDA 64,907 63,166 2.8% 11,604 17,382 -33.2% 3,377 2,795 20.8%
MARGIN % 36.1% 36.6% -0.5 31.6% 34.9% -3.3 19.2% 17.8% 1.4
12 10 3
--------------------------------------------------------------
SHERATON
REVENUE 50,917 50,582 0.7% 27,935 39,538 -29.3% 12,761 11,286 13.1%
EBITDA 13,349 14,332 -6.9% 9,510 14,627 -35.0% 3,571 2,959 20.7%
MARGIN % 26.2% 28.3% -2.1 34.0% 37.0% -3.0 28.0% 26.2% 1.8
10 3 0
------------------------------------------
WESTIN
REVENUE 56,559 54,611 3.6% 8,832 10,308 -14.3% 0 0 n/a
EBITDA 18,522 18,762 -1.3% 2,094 2,755 -24.0% 0 0 n/a
MARGIN % 32.7% 34.4% -1.7 23.7% 26.7% -3.0 n/a n/a n/a
11 0 0
---------------------
LUXURY COLLECTION
REVENUE 72,310 67,199 7.6% 0 0 n/a 0 0 n/a
EBITDA 33,036 30,072 9.9% 0 0 n/a 0 0 n/a
MARGIN % 45.7% 44.8% 0.9 n/a n/a n/a n/a n/a n/a
0 0 0
W
REVENUE 0 0 n/a 0 0 n/a 0 0 n/a
EBITDA 0 0 n/a 0 0 n/a 0 0 n/a
MARGIN % n/a n/a n/a n/a n/a n/a n/a n/a n/a
0 0 1
--------------------
OTHER
REVENUE 0 0 n/a 0 0 n/a 4,782 4,431 7.9%
EBITDA 0 0 n/a 0 0 n/a (194) (164)-18.3%
MARGIN % n/a n/a n/a n/a n/a n/a -4.1% -3.7% -0.4
(1) Hotel Results exclude 3 hotels without prior year results and 2
hotels sold during 2001 and 2002.
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Hotel Results - Same Store (1)
For the Nine Months Ended September 30, 2002
UNAUDITED
WORLDWIDE NORTH AMERICA INTERNATIONAL(2)
--------- --------------- ----------------
2002 2001 Var. 2002 2001 Var. 2002 2001 Var.
---------------------------------------------------------------
156 110 46
Hotels Hotels Hotels
---------------------------------------------------------------
OWNED
HOTELS
REVPAR
($) 96.53 107.09 -9.9% 94.97 105.23 -9.8% 101.28 112.77 -10.2%
ADR ($)150.39 158.99 -5.4% 144.50 154.55 -6.5% 170.20 173.08 -1.7%
OCCUPANCY
(%) 64.2% 67.4% -3.2 65.7% 68.1% -2.4 59.5% 65.2% -5.7
68 44 24
---------------------------------------------------------------
SHERATON
REVPAR
($) 78.28 90.78 -13.8% 82.37 94.54 -12.9% 69.53 82.78 -16.0%
ADR ($)127.90 138.31 -7.5% 129.60 140.62 -7.8% 123.80 133.00 -6.9%
OCCUPANCY
(%) 61.2% 65.6% -4.4 63.6% 67.2% -3.6 56.2% 62.2% -6.0
35 23 12
---------------------------------------------------------------
WESTIN
REVPAR
($) 107.38 116.21 -7.6% 98.89 107.06 -7.6% 140.24 151.47 -7.4%
ADR ($)154.63 161.14 -4.0% 140.60 147.85 -4.9% 212.58 213.45 -0.4%
OCCUPANCY
(%) 69.4% 72.1% -2.7 70.3% 72.4% -2.1 66.0% 71.0% -5.0
14 5 9
---------------------------------------------------------------
LUXURY COLLECTION
REVPAR
($) 216.31 237.61 -9.0% 208.88 241.00 -13.3% 224.69 233.77 -3.9%
ADR ($)362.18 349.90 3.5% 349.15 357.35 -2.3% 376.94 341.59 10.3%
OCCUPANCY
(%) 59.7% 67.9% -8.2 59.8% 67.4% -7.6 59.6% 68.4% -8.8
10 10 0
-----------------------------------------
W
REVPAR
($) 129.91 139.89 -7.1% 129.91 139.89 -7.1% 0.00 0.00 n/a
ADR ($)197.10 209.47 -5.9% 197.10 209.47 -5.9% 0.00 0.00 n/a
OCCUPANCY
(%) 65.9% 66.8% -0.9 65.9% 66.8% -0.9 0.0% 0.0% n/a
29 28 1
---------------------------------------------------------------
OTHER
REVPAR
($) 73.67 76.66 -3.9% 75.59 79.19 -4.5% 54.21 50.63 7.1%
ADR ($)111.70 118.83 -6.0% 115.90 123.64 -6.3% 73.80 73.08 1.0%
OCCUPANCY
(%) 66.0% 64.5% 1.5 65.2% 64.0% 1.2 73.5% 69.3% 4.2
(1) Hotel Results exclude 1 hotel under significant renovation or
without comparable results, 7 hotels without prior year
results and 4 hotels sold during 2001 and 2002.
(2) See next page for breakdown by division.
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Hotel Results - Same Store (1)
For the Nine Months Ended September 30, 2002
UNAUDITED
EUROPE LATIN AMERICA ASIA PACIFIC
-------- --------------- -------------
2002 2001 Var. 2002 2001 Var. 2002 2001 Var.
-------------------------------------------------------------
30 13 3
Hotels Hotels Hotels
-------------------------------------------------------------
OWNED HOTELS
REVPAR($) 142.79 150.36 -5.0% 56.67 76.97 -26.4% 63.30 62.92 0.6%
ADR ($) 226.31 218.50 3.6% 108.16 129.65 -16.6% 94.37 92.55 2.0%
OCCUPANCY
(%) 63.1% 68.8% -5.7 52.4% 59.4% -7.0 67.1% 68.0% -0.9
12 10 2
-------------------------------------------------------------
SHERATON
REVPAR($) 93.81 100.65 -6.8% 50.52 70.96 -28.8% 70.28 72.37 -2.9%
ADR ($) 147.26 146.55 0.5% 102.91 126.12 -18.4% 113.05 108.03 4.6%
OCCUPANCY
(%) 63.7% 68.7% -5.0 49.1% 56.3% -7.2 62.2% 67.0% -4.8
9 3 0
-----------------------------------------
WESTIN
REVPAR($) 161.63 169.61 -4.7% 87.86 107.24 -18.1% 0.00 0.00 n/a
ADR ($) 249.92 244.73 2.1% 127.05 142.97 -11.1% 0.00 0.00 n/a
OCCUPANCY
(%) 64.7% 69.3% -4.6 69.2% 75.0% -5.8 0.0% 0.0% n/a
9 0 0
--------------------
LUXURY COLLECTION
REVPAR($) 224.69 233.77 -3.9% 0.00 0.00 n/a 0.00 0.00 n/a
ADR ($) 376.94 341.59 10.3% 0.00 0.00 n/a 0.00 0.00 n/a
OCCUPANCY
(%) 59.6% 68.4% -8.8 0.0% 0.0% n/a 0.0% 0.0% n/a
0 0 0
W
REVPAR($) 0.00 0.00 n/a 0.00 0.00 n/a 0.00 0.00 n/a
ADR ($) 0.00 0.00 n/a 0.00 0.00 n/a 0.00 0.00 n/a
OCCUPANCY
(%) 0.0% 0.0% n/a 0.0% 0.0% n/a 0.0% 0.0% n/a
0 0 1
--------------------
OTHER
REVPAR($) 0.00 0.00 n/a 0.00 0.00 n/a 54.21 50.63 7.1%
ADR ($) 0.00 0.00 n/a 0.00 0.00 n/a 73.80 73.08 1.0%
OCCUPANCY
(%) 0.0% 0.0% n/a 0.0% 0.0% n/a 73.5% 69.3% 4.2
(1) Hotel Results exclude 1 hotel under significant renovation or
without comparable results, 7 hotels without prior year
results and 4 hotels sold during 2001 and 2002.
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Hotel Results - Comparable (1)
For the Nine Months Ended September 30, 2002
UNAUDITED ($thousands)
WORLDWIDE NORTH AMERICA
---------- -------------
2002 2001 Var. 2002 2001 Var.
----------------------------------------------------
157 110
Hotels Hotels
----------------------------------------------------
OWNED HOTELS
Total
REVENUE 2,273,901 2,514,043 -9.6% 1,675,378 1,853,899 -9.6%
Total
EBITDA 638,992 792,289 -19.3% 449,922 567,810 -20.8%
MARGIN % 28.1% 31.5% -3.4 26.9% 30.6% -3.7
69 44
----------------------------------------------------
SHERATON
REVENUE 881,662 1,004,727 -12.2% 611,587 690,129 -11.4%
EBITDA 245,660 314,765 -22.0% 166,588 215,065 -22.5%
MARGIN % 27.9% 31.3% -3.4 27.2% 31.2% -4.0
35 23
----------------------------------------------------
WESTIN
REVENUE 660,118 716,835 -7.9% 480,420 523,277 -8.2%
EBITDA 193,905 229,857 -15.6% 135,379 159,594 -15.2%
MARGIN % 29.4% 32.1% -2.7 28.2% 30.5% -2.3
14 5
----------------------------------------------------
LUXURY COLLECTION
REVENUE 330,688 364,505 -9.3% 195,558 225,139 -13.1%
EBITDA 99,692 124,570 -20.0% 47,507 69,662 -31.8%
MARGIN % 30.1% 34.2% -4.1 24.3% 30.9% -6.6
10 10
----------------------------------------------------
W
REVENUE 173,076 188,396 -8.1% 173,076 188,396 -8.1%
EBITDA 41,765 55,504 -24.8% 41,765 55,504 -24.8%
MARGIN % 24.1% 29.5% -5.4 24.1% 29.5% -5.4
29 28
----------------------------------------------------
OTHER
REVENUE 228,357 239,580 -4.7% 214,737 226,958 -5.4%
EBITDA 57,970 67,593 -14.2% 58,683 67,985 -13.7%
MARGIN % 25.4% 28.2% -2.8 27.3% 30.0% -2.7
INTERNATIONAL(2)
----------------
2002 2001 Var.
----------------------
47
Hotels
----------------------------
OWNED HOTELS
Total
REVENUE 598,523 660,144 -9.3%
Total
EBITDA 189,070 224,479 -15.8%
MARGIN % 31.6% 34.0% -2.4
25
----------------------------
SHERATON
REVENUE 270,075 314,598 -14.2%
EBITDA 79,072 99,700 -20.7%
MARGIN % 29.3% 31.7% -2.4
12
----------------------------
WESTIN
REVENUE 179,698 193,558 -7.2%
EBITDA 58,526 70,263 -16.7%
MARGIN % 32.6% 36.3% -3.7
9
----------------------------
LUXURY COLLECTION
REVENUE 135,130 139,366 -3.0%
EBITDA 52,185 54,908 -5.0%
MARGIN % 38.6% 39.4% -0.8
0
W
REVENUE 0 0 n/a
EBITDA 0 0 n/a
MARGIN % n/a n/a n/a
1
----------------------------
OTHER
REVENUE 13,620 12,622 7.9%
EBITDA (713) (392) -81.9%
MARGIN % -5.2% -3.1% -2.1
(1) Hotel Results exclude 7 hotels without prior year results and
4 hotels sold during 2001 and 2002.
(2) See next page for breakdown by division.
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Hotel Results - Comparable (1)
For the Nine Months Ended September 30, 2002
UNAUDITED ($thousands)
EUROPE LATIN ASIA
AMERICA PACIFIC
-------- -------- --------
2002 2001 Var. 2002 2001 Var. 2002 2001 Var.
----------------------------------------------------------------
30 13 4
Hotels Hotels Hotels
----------------------------------------------------------------
OWNED HOTELS
Total
RE-
VENUE 416,317 436,822 -4.7% 133,286 178,795 -25.5% 48,920 44,527 9.9%
Total
EBITDA 131,678 145,514 -9.5% 48,936 71,399 -31.5% 8,456 7,566 11.8%
MARGIN
% 31.6% 33.3% -1.7 36.7% 39.9% -3.2 17.3% 17.0% 0.3
12 10 3
----------------------------------------------------------------
SHERATON
RE-
VENUE 139,565 149,081 -6.4% 95,210 133,612 -28.7% 35,300 31,905 10.6%
EBITDA 35,405 40,129 -11.8% 34,498 51,613 -33.2% 9,169 7,958 15.2%
MARGIN
% 25.4% 26.9% -1.5 36.2% 38.6% -2.4 26.0% 24.9% 1.1
9 3 0
--------------------------------------------
WESTIN
RE-
VENUE 141,622 148,375 -4.6% 38,076 45,183 -15.7% 0 0 n/a
EBITDA 44,088 50,477 -12.7% 14,438 19,786 -27.0% 0 0 n/a
MARGIN
% 31.1% 34.0% -2.9 37.9% 43.8% -5.9 n/a n/a n/a
9 0 0
----------------------
LUXURY COLLECTION
RE-
VENUE 135,130 139,366 -3.0% 0 0 n/a 0 0 n/a
EBITDA 52,185 54,908 -5.0% 0 0 n/a 0 0 n/a
MARGIN
% 38.6% 39.4% -0.8 n/a n/a n/a n/a n/a n/a
0 0 0
W
REVENUE 0 0 n/a 0 0 n/a 0 0 n/a
EBITDA 0 0 n/a 0 0 n/a 0 0 n/a
MARGIN
% n/a n/a n/a n/a n/a n/a n/a n/a n/a
0 0 1
--------------------
OTHER
REVENUE 0 0 n/a 0 0 n/a 13,620 12,622 7.9%
EBITDA 0 0 n/a 0 0 n/a (713) (392)-81.9%
MARGIN
% n/a n/a n/a n/a n/a n/a -5.2% -3.1% -2.1
(1) Hotel Results exclude 7 hotels without prior year results and
4 hotels sold during 2001 and 2002.
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Debt Portfolio Summary
As of September 30, 2002
UNAUDITED (in millions)
Interest Balance Interest Avg
Maturity
Debt Terms (in % of Rate (in
millions) Portfolio years)
------------------ -------- ---------- ------------------- -------
Floating Rate Debt:
Senior credit
facility
Revolving credit
facility VARIOUS +160 $506 9% 4.10% 0.4 (1)
Term loan LIBOR + 160 174 3% 3.48% 0.4 (1)
---------- ---------- -------- -------
680 12% 3.95% 0.4
450M Euro
facility EURIBOR + 195 444 8% 5.24% 0.7
Mortgages and
other Various 251 5% 5.59% 2.6
Interest rate
swaps Various 1,001 19% 5.77%
---------- ---------- --------
Total Floating 2,376 44% 5.13% 0.9
Fixed Rate Debt:
Sheraton Holding
public debt 1,324 25% 6.52% 8.5 (3)
Senior notes 1,542 29% 7.05% 7.3 (4)
Convertible debt 313 6% 3.25% 1.7 (5)
Mortgages and
other 793 15% 7.38% 9.5
Interest rate
swaps (1,001) -19% 7.26%
---------- ---------- --------
Total Fixed 2,971 56% 6.43% 7.7
---------- ---------- --------
Total Debt 5,347 100% 5.85% 5.9
========== ========== ========
---------------------------
Maturities
(1) (2)
---------------------------
(less than)1 year $1,270 $589
2-3 years 645 770
4-5 years 1,334 1,890
(greater than)5 years 2,098 2,098
-------- -------
$5,347 $5,347
======== =======
---------------------------
(1) Reflects original maturities, before the effects of the $1.3
billion refinancing of the senior credit facility completed in
October 2002. The new facility matures October 9, 2006. After
giving effect to the refinancing, the Company's debt at
September 30, 2002 remains at 44% floating rate and 56% fixed
rate with a weighted average maturity of 6.4 years at 5.86%.
(2) Reflects maturities after giving effect to the refinancing
completed in October 2002 discussed in (1) above.
(3) Balance consists of outstanding public debt of $1.297 billion
and a $27 million fair value adjustment primarily related to
fixed to floating interest rate swaps terminated in September
2002.
(4) Balance consists of outstanding public debt of $1.494 billion
and a $48 million fair market value adjustment primarily
related to fixed to floating interest rate swaps terminated in
September 2002.
(5) Maturity date reflects the first put date of the convertible
debt.
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Hotels under Renovation and/or without Comparable Results & Other
Selected Items
For the Three Months Ended September 30, 2002
UNAUDITED
Properties under Significant Renovation or without Comparable
Results during the 3rd Quarter 2002
Property Location
------------------------- ---------------
W Chicago - Lake Shore Chicago, IL
Sheraton Royal Denarau Nadi, Fiji
Resort
Westin Dublin Hotel Dublin, Ireland
W New York - Times Square New York, NY
Selected Balance Sheet and Cash Flow Items:
Cash and cash equivalents $229
Capital expenditures $112
Debt level $5,347
Shares Repurchased -
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Summary of Portfolio by Properties & Rooms
As of September 30, 2002
UNAUDITED
PROPERTIES
Sheraton Westin Lux. Col./ Four
St. Regis Points
--------- ------- ----------- ------
Owned, leased &
consolidated JVs 68 38 18 7
Unconsolidated joint
ventures 29 9 2 2
----------------------------------------
Equity interest
properties 97 47 20 9
Managed (third-party owned) 141 39 18 22
Franchised, represented
& referral 158 26 12 114
----------------------------------------
Total 396 112 50 145
==== ==== === ====
W Other Total
-- ------ ------
Owned, leased &
consolidated JVs 12 21 164
Unconsolidated joint
ventures - 1 43
----------------------------------------
Equity interest
properties 12 22 207
Managed (third-party owned) 4 4 228
Franchised, represented
& referral - - 310
----------------------------------------
Total 16 26 745
=== === ====
ROOMS
Sheraton Westin Lux. Col./ Four
St. Regis Points
--------- ------- ----------- ------
Owned, leased &
consolidated JVs 26,989 14,398 3,731 1,782
Unconsolidated joint
ventures 11,510 3,763 441 328
----------------------------------------
Equity interest
properties 38,499 18,161 4,172 2,110
Managed (third-party owned) 47,423 19,257 3,474 4,101
Franchised, represented
& referral 46,682 8,493 1,473 20,692
----------------------------------------
Total 132,604 45,911 9,119 26,903
======= ====== ====== =======
W Other Total
-- ------ ------
Owned, leased &
consolidated JVs 4,391 5,103 56,394
Unconsolidated joint
ventures - 132 16,174
-----------------------------------------
Equity interest
properties 4,391 5,235 72,568
Managed (third-party owned) 595 624 75,474
Franchised, represented
& referral - - 77,340
-----------------------------------------
Total 4,986 5,859 225,382
====== ====== ========
-------------------------------------------------------------
Contact:
Starwood Hotels & Resorts Worldwide, Inc.
David Matheson, 914/640-5204
Source: Starwood Hotels & Resorts Worldwide, Inc.