Starwood Reports Higher First Quarter Net Income of $30 Million

Starwood Hotels & Resorts Worldwide, Inc. reported income from continuing operations for the first quarter of $0.16 per share compared to $0.04 in the first quarter of 2009. Excluding special items, which net to a benefit of $6 million in 2010 and a charge of $18 million in 2009, EPS from continuing operations was $0.13 for the first quarter of 2010 compared to $0.15 in the first quarter of 2009. Excluding special items, the effective income tax rate in the first quarter of 2010 was 14.5 percent compared to 17.8 percent in the same period of 2009.

Income from continuing operations was $30 million in the first quarter of 2010 compared to $9 million in 2009. Excluding special items, income from continuing operations was $24 million in the first quarter of 2010 compared to $27 million in 2009. Net income was $30 million and EPS was $0.16 in the first quarter of 2010 compared to net income of $6 million and EPS of $0.03 in the first quarter of 2009.

Worldwide system-wide RevPAR (revenue per available room) for Same-Store Hotels increased 6.3 percent (3 percent in constant dollars) compared to the first quarter of 2009. System-wide rev PAR for Same-Store Hotels in North America increased 2.8 percent (1.2 percent in constant dollars).

Management and franchise revenues increased 5.6 percent compared to 2009. Worldwide RevPAR for Starwood branded Same-Store Owned Hotels increased 6.6 percent (2.1 percent in constant dollars) compared to the first quarter of 2009. RevPAR for Starwood branded Same-Store Owned Hotels in North America increased 5.8 percent (2.8 percent in constant dollars).

Operating income from vacation ownership and residential increased $3 million compared to 2009. During the quarter, Starwood signed 13 hotel management and franchise contracts representing approximately 3,000 rooms and opened 14 hotels and resorts with approximately 2,600 rooms.

Based on its first quarter results and its expectations for the second quarter, Starwood said full-year 2010 RevPAR at Same-Store Company Operated Hotels Worldwide could be up 5 percent to 8 percent in constant dollars and approximately 100 bps higher in dollars at current exchange rates.

RevPAR at Branded Same-Store Owned Hotels Worldwide could be up 4 percent to 7 percent in constant dollars and approximately 100 bps higher in dollars at current exchange rates. At the midpoint of these REVPAR ranges, adjusted EBITDA would be approximately $810 million.