Starwood Hotels & Resorts Q1 Results Top Estimates

(RTTNews) - Starwood Hotels & Resorts Worldwide Inc (HOT), which is in deal to be acquired by Marriott International, Inc. (MAR), reported Tuesday that its first-quarter net income attributable to the company declined 9.1 percent to $90 million or $0.53 per share from $99 million or $0.58 per share in 2015.

Excluding special items, earnings per share were $0.70 for the first quarter, compared to $0.65 in the first quarter of 2015.

On average, 18 analysts polled by Thomson Reuters expected earnings of $0.58 per share. Analysts' estimates typically exclude special items.

Total revenues edged down 0.8 percent to $1.40 billion from $1.42 billion last year. Analysts were looking for revenues of $1.34 billion for the quarter.

Worldwide Systemwide REVPAR for Same-Store Hotels decreased 1.3 percent, but increased 1.0 percent in constant dollars.

Due to the planned merger with Marriott, the Company will not host a conference call for its first quarter financial results.

Looking ahead, for the second quarter, earnings per share before special items are expected to be approximately $0.69 to $0.74, while analysts expect $0.73 per share.Adjusted EBITDA is expected to be approximately $275 million to $285 million.

For fiscal 2016, the expects adjusted earnings per share to be approximately $3.00 to $3.06, while analysts expect $2.81 per share. Adjusted EBITDA is expected to be approximately $1.150 billion to $1.165 billion. REVPAR at Same-Store Systemwide Hotels Worldwide is still expected to be up 2 percent to 4 percent in constant dollars.

Alan Schnaid, Chief Financial Officer said, "Our outlook for the rest of 2016 remains strong. We are maintaining our expectations for full year REVPAR growth and increasing our guidance ranges for both EBITDA and EPS. With the impending completion of the spin-off of our vacation ownership business and its subsequent merger with ILG, we will take another significant step toward becoming asset light, as well as achieving an important milestone toward the completion of our merger with Marriott."