Starwood Hotels Q4 Adj. Profit Beats View, While Hyatt Hotels Profit Misses

(RTTNews) - Starwood Hotels & Resorts Worldwide, Inc. (HOT) said Thursday that its fourth quarter profit declined 29 percent from last year, hurt by lower revenues as well as restructuring and special charges. However, the company's adjusted earnings beat analysts' expectations.

Meanwhile, Hyatt Hotels Corp. (H) reported an 80 percent fall in profit for the fourth quarter from last year when results benefited from a one-time gain on sale of real estate. Adjusted earnings for the quarter missed analysts' expectations.

Stamford, Connecticut-based Starwood's net income for the fourth quarter was $166 million or $0.98 per share, down from $234 million or $1.33 per share in the year-ago quarter.

Excluding items, adjusted earnings for the quarter were $0.89 per share, compared to $0.97 per share in the prior year quarter. On average, 17 analysts polled by Thomson Reuters expected the company to earn $0.79 per share for the quarter. Analysts' estimates typically exclude special items.

Revenue for the quarter fell 4 percent to $1.43 billion from $1.49 billion in the same quarter last year. Analysts had a consensus revenue estimate of $1.44 billion for the quarter.

Worldwide systemwide REVPAR for same-store hotels increased 2.8 percent in constant dollars, while it decreased 1.1 percent in actual dollars.

For the full year 2016, the company expects REVPAR at same-store systemwide hotels worldwide to increase 2 to 4 percent in constant dollars.

Meanwhile, Hyatt reported net income attributable to the company for the fourth quarter of $37 million or $0.26 per share, down from $182 million or $1.20 per share last year.

On an adjusted basis, earnings for the quarter were $30 million or $0.21 per share, compared to $47 million or $0.31 per share in the year-ago period. Analysts expected the company to earn $0.24 per share.

Revenue for the quarter was $1.11 billion, up from $1.08 billion last year. Wall Street analysts were looking for $1.10 billion.

Owned and leased hotels revenue declined 3.8 percent from the year-ago period to $530 million, while management and franchise fee revenue increased 5.9 percent to $107 million.

Comparable owned and leased hotel revenue per available room or RevPAR increased 2.1 percent, or 4.4 percent excluding the effect of currency.

For fiscal 2016, Hyatt projects comparable systemwide RevPAR is expected to increase about 3.0 to 5.0 percent excluding the effect of currency, as compared to fiscal year 2015.