Starwood Q3 Profit Tops Estimates

(RTTNews) - Starwood Hotels & Resorts Worldwide, Inc. (HOT) reported that its third quarter income from continuing operations decreased to $88 million from $109 million, a year ago. Earnings per share from continuing operations was $0.53 compared to $0.59.

Excluding special items, income from continuing operations was $125 million in the third quarter of 2015 compared to $121 million in the third quarter of 2014. Excluding special items, EPS from continuing operations was $0.74 for the third quarter of 2015. Analysts polled by Thomson Reuters expected the company to report profit per share of $0.72 for the quarter. Analysts' estimates typically exclude special items.

Revenue was $1.43 billion compared to $1.49 billion last year. Analysts expected revenue of $1.44 billion for the quarter. Worldwide Systemwide REVPAR for Same-Store Hotels increased 5.4% in constant dollars, while decreased 0.3% in actual dollars.

For the full year 2015, Starwood expects: adjusted EBITDA to be approximately $1.180 billion to $1.195 billion, and EPS before special items to be approximately $2.96 to $3.02. REVPAR increases at Same-Store Systemwide Hotels Worldwide are expected in the range of 4% to 5% in constant dollars.

For the three months ended December 31, 2015: adjusted EBITDA is expected to be approximately $300 million to $315 million, and EPS to be approximately $0.76 to $0.82. REVPAR increases at Same-Store Systemwide Hotels Worldwide are expected to be in the range of 3% to 5% in constant dollars.

For the full year 2016: the company expects REVPAR at Same-Store Systemwide Hotels Worldwide to increase 4% to 6% in constant dollars. The company noted that asset sales completed to date will reduce its 2016 owned hotel earnings by approximately $38 million compared to full year 2015.

Separately, the company announced that it had entered into definitive agreements with Interval Leisure Group, Inc. pursuant to which the company's vacation ownership business will be distributed on a pro rata basis to stockholders and immediately after will merge with a wholly-owned subsidiary of Interval. The transaction has a total value to Starwood of approximately $1.5 billion.