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Friday, March 29, 2024

UPDATE: Starwood Hotels Posts Higher Q2 Profit, Lifts Full-Year Forecast

Courtesy of Benzinga.

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Starwood Hotels Resorts Worldwide (NYSE: HOT) reported a 12% rise in its second-quarter earnings and lifted its full-year forecast.

Starwood now expects full-year earnings of $2.78 to $2.85 per share.

The Stamford, Connecticut-based company posted quarterly earnings of $153 million, or $0.80 per share, compared to $137 million, or $0.71 per share, in the year-earlier quarter. Excluding items, its earnings from continuing operations declined to $0.77 per share from $0.79 per share. In April, Starwood expected earnings of $0.72 to $0.76 per share.

Its revenue dropped 1.5% to $1.54 billion from $1.56 billion. However, analysts were expecting earnings of $0.75 per share on revenue of $1.54 billion.

Starwood’s worldwide systemwide REVPAR for same-store hotels increased 5.3% in constant dollars, while management fees, franchise fees and other income climbed 10% to $260 million.

Its revenue from vacation ownership dropped 28%, while revenue from owned, leased and consolidated joint venture hotels shrank 1.2%. Starwood’s other revenue from managed and franchised properties climbed 3.9%.

Starwood signed 45 hotel management and franchise contracts and opened 19 hotels and resorts with around 3,800 rooms in the quarter.

For the current quarter, the company projects earnings of $0.62 to $0.65 per share, versus analysts’ estimates of $0.67 per share.

Frits van Paasschen, CEO, said, “We exceeded our expectations for both adjusted EBITDA and EPS in the second quarter. Rising REVPAR drove strong growth in our management and franchise fees. This continued growth in our fee business, along with the trends we are seeing across our hotels and vacation ownership, points to a global recovery that is steadily moving into its fifth year. “

Starwood shares gained 0.01% to close at $83.74 yesterday.

Posted-In: profitEarnings News Guidance

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