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July 26, 2012

Starwood Hotels & Resorts Q2 2012 net income falls by 7%

Hotel operator Starwood Hotels & Resorts Worldwide has said its net income for the second-quarter of 2012 fell by 7% to $122m, down from $131m in the same period a year ago.

By Paul Dennis

Hotel operator Starwood Hotels & Resorts Worldwide has said its net income for the second-quarter of 2012 fell by 7% to $122m, down from $131m in the same period in 2011.

The company’s quarterly revenue rose by 13% to $1.62bn in the quarter, up from $1.43bn in the same period a year ago.

Starwood Hotels & Resorts CEO Frits van Paasschen said that the company managed to keep up its momentum in the second quarter, despite gloomy economic conditions prevailing worldwide.

"Our REVPAR grew 6.9%, with occupancy over a healthy 71%. Despite the uncertain global environment, we expect the trends we saw in our business for the past quarter to continue through the second half of the year," added Paasschen.

Revenue per available room (revPAR) rose 6.9% in the quarter.

Adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) were $323m for the quarter, an increase of 23.3% from the corresponding quarter of 2011.

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The US-based company operates owns and operates 1,100 properties in almost 100 countries both directly and through its subsidiaries, which include St.Regis, The Luxury Collection, W, Le Méridien, Westin, Sheraton, among others across the world.

During this quarter the company is said to have inked 34 hotel management and franchise contracts, representing about 8,300 rooms, besides opening 14 hotels and resorts with around 2,700 rooms.

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