Net income came to $134m and earnings per share (EPS) 74 cents in the second quarter of 2009, compared with $105m and 56 cents in Q208.
Special items in the Q209 figures increased the hotel group’s income by $90m – mainly thanks to the Italian tax scheme – but were partially offset by net impairment charges of $26m. Excluding the special items, EPS from continuing operations were just 22 cents.
Worldwide revenue per available room (revPAR) plunged 27.7% year-on-year for the three months to 30 June, as luxury and business travel were hit by the global recession.
Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) totalled $200m, down 33% from last year’s figure of $299m.
Income from continuing operations was $41m compared to $107m in Q208.
Chief executive Frits van Paasschen said: ‘Despite an estimated $10m impact from H1N1 during the quarter, we were able to beat expectations based on our continued focus on managing costs and driving revenue.
‘Economic times like these afford us the opportunity to realign the organisation around a sustainably lower cost base while continuing to invest in our brands and global growth opportunities.
‘So while the current environment remains extremely challenging, we are committed to our long-term growth strategy and by the end of 2009, 60% of our 1,000 hotels will have been opened or renovated during the past three years.’
RevPAR fell most in Latin America (36.4%) and Europe (34.4%), but least in Africa and the Middle East (19.9%).
Starwood operates upmarket brands such as Four Points by Sheraton, Westin, Sheraton, W Hotels, Le Méridien 31.3%, aloft and Luxury Collection.
For the full second quarter results click
here.
See also:
Marriott and Starwood add meetings technology (01/07/2009)
Hotels move to boost MICE business (21/05/2009)
Hilton’s luxury brand put on hold (22/04/2009)
Starwood to add 20,000 rooms (25/04/2008)
Starwood ‘revitalises’ Sheraton (27/03/2008)