Looks like starwood is doing okay:}WHITE PLAINS, N.Y. (Reuters) - Sheraton hotels owner Starwood Hotels & Resorts Worldwide Inc. (HOT) said on Wednesday it swung to a quarterly profit as operations bounced back from the travel slump after Sept. 11, but warned that first-quarter profit would be lower than the year-ago period.
The White Plains, New York-based company, which also owns the Westin and W hotel brands, reported a fourth-quarter net profit of $91 million, or 45 cents per share, compared with a net loss of $54 million or 28 cents, a year earlier. Starwood earned $86 million, or 45 cents per share, from continuing operations.
Excluding one-time items, Starwood reported a profit of 22 cents a share, up from a loss of 1 cent a year last year. Analysts polled by Thomson First Call had an average estimate of 21 cents per share on Starwood's earnings, with a range of 19 cents to 24 cents.
But looking ahead to the first quarter, Starwood said earnings per share would be about 4 cents, versus 8 cents per share last year, as the threat of war has already begun to depress meeting and business travel bookings.
For the fourth quarter of 2002, revenues from Starwood's own hotels and properties rose 12 percent to $983 million. Including reimbursements from payroll costs at managed and franchised properties, revenue rose to $1.17 billion from $1.04 billion in the year-ago period.
The company said revenue per available room, or RevPAR, at hotels open at least one year will likely be about flat with the comparable period last year, though that forecast does not anticipate an extended conflict in the Middle East.
RevPAR, a key measure of performance in the lodging industry, actually rose 9.4 percent for the quarter at hotels open at least a year, the company said on Wednesday.
Starwood in October cut its fourth-quarter earnings forecast in half to between 20 cents and 25 cents per share, saying revenue per available room, or RevPAR, would rise 7 percent to 9 percent in the quarter.
The company reported full-year earnings per share of $1.73 including discontinued operations, and 98 cents per share excluding one-time items. Starwood said it expects 2003 profits to be approximately flat to up 10 percent as its depreciation expenses drop. Analysts are expecting $1.05 per share for 2003.
The hotel operator also said it plans to invest about $400 million to $500 million in the current year.