Press Release: ICON Financial Advisory Services, LLC
July 18, 2002
SAN DIEGO, CA -- Released yesterday by ICON Financial Advisory Services, LLC (IFAS), a Registered Investment Adviser
(CRD # 119-292): Two of the most comprehensive studies to date on vertical gap analysis and labor productivity
benchmarks for Starwood Hotels & Resorts Worldwide Inc. (NYSE:HOT - news).
According to Aaron Freeman, President of IFAS, "With the globalization of markets, greater foreign competition,
and the reduction of barriers to entry, it becomes all the more important to benchmark a company's financial indicators
on a worldwide basis. World stock markets have recently witnessed a return to fundamental financial analysis. "
The goal of the reports is to assist consultants, financial managers, strategic planners, and corporate officers
in gauging certain indicators of Starwood Hotels & Resorts Worldwide Inc.'s financial and human resource structure.
Drawing on the expertise of Professor Philip M. Parker of INSEAD (Fontainbleau, France and Singapore), IFAS has
benchmarked Starwood Hotels & Resorts Worldwide Inc. against competing firms in the Hotels and Motels industry
worldwide—going beyond traditional methods of company benchmarking. The results are two specialized reports: (1)
global financial benchmarks using common-size statement ratios (vertical analysis), and (2) labor productivity
and utilization measures collected across borders.
Coverage
Two reports, financial ratios and labor productivity ratios, are available for Starwood Hotels & Resorts Worldwide
Inc. Each report reveals productivity and industry ranks for Starwood Hotels & Resorts Worldwide Inc. in the
Hotels and Motels industry. Reports for the following and many other Hotels and Motels companies are available
now:
Arlington Hospitality Inc., Boca Resorts Inc., Boyd Gaming Corp., Candelwood Hotel Co. Inc., Choice Hotels International
Inc., Choice Hotels Scandinavia Asa, Crestline Capital Corp., Extended Stay America Inc., Four Seasons Hotels Inc.,
Fujita Kanko Inc., Harrah's Entertainment Inc., Hilton Hotels Corp., Hotel New Hankyu Co. LTD., Isle Of Capri Casino
Inc., Janus Hotels and Resorts Inc., Mandalay Resort Group, Mandarin Oriental International LTD., Marcus Corp.,
Marriott International Inc., Meristar Hotels & Resorts Inc., Monarch Casino & Resort Inc., Park Place Entertainment
Corp., Prime Hospitality Corp., Promociones Eurobuilding S.A., Sonesta International Hotels Corp., Starwood Hotels
& Resorts Worldwide Inc., Station Casinos Inc., Suburban Lodges of America Inc., Vail Resorts Inc., and WestCoast
Hospitality Corp.
The vertical analysis deals with questions like: How has Starwood Hotels & Resorts Worldwide Inc.'s asset structure
varied compared to global benchmarks for the Hotels and Motels industry? Does it generally hold more cash and other
short-term assets, or does it tend to concentrate its assets in physical plant and equipment? On the liability
side, does Starwood Hotels & Resorts Worldwide Inc. typically have a higher percent of payables compared to
the benchmarks, or does it hold a higher concentration of long-term debt? Does Starwood Hotels & Resorts Worldwide
Inc. have a relatively higher cost of goods sold, operating costs, or income taxes compared to global benchmarks?
Have Starwood Hotels & Resorts Worldwide Inc.'s returns on equity been higher or its profit margins greater?
While the labor productivity analysis answers the following: What has been the ratio of short-term and long-term
assets to employee? What are typical capital-labor ratios? What are the average sales and net profits per employee
compared to global benchmarks?
Freeman notes, "We are intrigued by the wide variations in basic financial and productivity measures between
Starwood Hotels & Resorts Worldwide Inc. and other Hotels and Motels companies. The Gross Profit Margin, for
example, varied from 92.77 to 2.30. We see this type of variation in the 100 or so ratios that we estimate."
Methodology: Uncovering Gaps
Most vertical analyses merely focus on benchmarking against domestic ratios, often published by government agencies
or commercial sources. In contrast, IFAS calculates thousands of industry norms by looking at firms at the global
level, pooling statistics on tens of thousands of companies across over 40 countries, and applying a seven-stage
methodology: (1) identification of industry classifications, (2) firm-level data collection and aggregation, (3)
standardization of raw statistics, (4) filtering outliers, (5) calculation of global norms, (6) projection of deviations
and gaps, and (7) projection of ranks and percentiles. For each part of the financial statement, the larger structural
differences and gaps between Starwood Hotels & Resorts Worldwide Inc. and the global benchmarks are provided
with summary tables of ranks and percentiles.
Previously available only through booksellers such as Hoovers, Amazon.com, and Barnes and Noble, two studies are
now available direct from the publisher at a 50% discount off the cover price. This special offer includes Vertical
Analysis and International Financial Benchmarks and Labor Productivity, Utilization and Global Benchmarks at $99.95
each. Contact Ula Tuszewicka for more information.
About IFAS
IFAS assists managers with global benchmarking, gap analysis, and productivity studies. Clients can create their
own benchmarks by choosing their competitors from among over 20,000 companies.
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Contact:
Contact: Ula Tuszewicka
Company: ICON Financial Advisory Services, LLC
Voice: 858-546-4345
Fax: 858-546-4341
Email: iconsubs@san.rr.com
CRD #: 119-292