Starwood Hotels & Resorts Worldwide Inc. (HOT, Financial) filed Quarterly Report for the period ended 2010-03-31.
Starwood Hotels & Resorts Worldwide Inc. has a market cap of $9.3 billion; its shares were traded at around $49.23 with a P/E ratio of 49.3 and P/S ratio of 1.9. The dividend yield of Starwood Hotels & Resorts Worldwide Inc. stocks is 0.4%.HOT is in the portfolios of Ken Heebner of CAPITAL GROWTH MANAGEMENT LP, John Paulson of Paulson & Co., Michael Price of MFP Investors LLC, Bruce Kovner of Caxton Associates, Steven Cohen of SAC Capital Advisors, Jeremy Grantham of GMO LLC.
The increase in revenues from owned, leased and consolidated joint venture hotels was primarily due to improved results at our existing owned, leased and consolidated joint venture hotels, offset in part by lost revenues from seven owned hotels that were sold or closed in 2009. These sold or closed hotels had revenues of $0 million in the three months ended March 31, 2010 compared to $28 million in the three months ended March 31, 2009. Revenues at our Same-Store Owned Hotels (58 hotels for the three months ended March 31, 2010 and 2009, excluding the seven hotels sold or closed and five additional hotels undergoing significant repositionings or without comparable results in 2010 and 2009) increased 4.9%, or $17 million, to $345 million for the three months ended March 31, 2010 when compared to $328 million in the same period of 2009 due primarily to an increase in REVPAR.
REVPAR at our worldwide Same-Store Owned Hotels increased 5.7% to $125.22 for the three months ended March 31, 2010 when compared to the corresponding 2009 period. The increase in REVPAR at these worldwide Same-Store Owned Hotels resulted from an increase in occupancy rates to 63.6% in the three months ended March 31, 2010 when compared to 59.6% in the same period in 2009 partially offset by a 1.0% decrease in ADR to $196.76 for the three months ended March 31, 2010 compared to $198.71 for the corresponding 2009 period. REVPAR at Same-Store Owned Hotels in North America increased 4.6% for the three months ended March 31, 2010 when compared to the same period of 2009. REVPAR growth was particularly strong at our owned hotels in New York, New York, Scottsdale, Arizona and Toronto, Canada. REVPAR at our international Same-Store Owned Hotels increased by 7.9% for the three months ended March 31, 2010 when compared to the same period of 2009. REVPAR for Same-Store Owned Hotels internationally increased 0.8% excluding the favorable effects of foreign currency translation.
The increase in management fees, franchise fees and other income was primarily a result of an $8 million increase in management and franchise revenues to $151 million for the three months ended March 31, 2010 compared to $143 million in 2009. The increase was due to growth in REVPAR of existing hotels under management as well as the net addition of 40 managed and franchised hotels to our system since the first quarter of 2009.
As a result of applying ASU No. 2009-17, vacation ownership revenues in the first quarter 2010 increased $14 million compared to 2009. This increase was more than offset by lower originated contract sales of VOI inventory, timing of adjustments for percentage of completion accounting and other deferrals, and higher loan loss provisions. Originated contract sales of VOI inventory decreased 4.9% in the three months ended March 31, 2010 when compared to the same period in 2009 primarily due to the closure of fractional sales centers in 2009. Excluding fractional, originated contract sales decreased 0.8% compared to the same period of 2009. This decline is primarily driven by a 7.5% decrease in the average contract amount per vacation ownership unit sold to approximately $16,800, partially offset by a 3.6% increase in the number of contracts signed. The average contract amount per vacation ownership unit sold decreased primarily as a result of price reductions and a higher percentage of lower-priced biennial inventory. The number of contracts signed increased 3.6% when compared to 2009 due to higher closing efficiency partly offset by lower tour flow. The decrease in vacation ownership and residential sales and services was partially offset by a $1 million increase in residential revenue. Residential revenue in 2010 included $2 million of license fees in connection with four properties.
Other revenues from managed and franchised properties increased to $520 million for the three months ended March 31, 2010 compared to $468 million in 2009, primarily due to an increase in the number of managed and franchised hotels. These revenues represent reimbursements of costs incurred on behalf of managed hotel and vacation ownership properties and franchisees and relate primarily to payroll costs at managed properties where we are the employer. Since the reimbursements are made based upon the costs incurred with no added margin, these revenues and corresponding expenses have no effect on our operating income and our net income.
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Starwood Hotels & Resorts Worldwide Inc. has a market cap of $9.3 billion; its shares were traded at around $49.23 with a P/E ratio of 49.3 and P/S ratio of 1.9. The dividend yield of Starwood Hotels & Resorts Worldwide Inc. stocks is 0.4%.HOT is in the portfolios of Ken Heebner of CAPITAL GROWTH MANAGEMENT LP, John Paulson of Paulson & Co., Michael Price of MFP Investors LLC, Bruce Kovner of Caxton Associates, Steven Cohen of SAC Capital Advisors, Jeremy Grantham of GMO LLC.
Highlight of Business Operations:
We, through the services of third-party actuarial analysts, determine the fair value of the future redemption obligation based on statistical formulas which project the timing of future point redemption based on historical experience, including an estimate of the breakage for points that will never be redeemed, and an estimate of the points that will eventually be redeemed as well as the cost of reimbursing hotels and other third parties in respect of other redemption opportunities for point redemptions. Actual expenditures for SPG may differ from the actuarially determined liability. The total actuarially determined liability as of March 31, 2010 and December 31, 2009 is $697 million and $689 million, respectively. A 10% reduction in the breakage of points would result in an estimated increase of $89 million to the liability at March 31, 2010.The increase in revenues from owned, leased and consolidated joint venture hotels was primarily due to improved results at our existing owned, leased and consolidated joint venture hotels, offset in part by lost revenues from seven owned hotels that were sold or closed in 2009. These sold or closed hotels had revenues of $0 million in the three months ended March 31, 2010 compared to $28 million in the three months ended March 31, 2009. Revenues at our Same-Store Owned Hotels (58 hotels for the three months ended March 31, 2010 and 2009, excluding the seven hotels sold or closed and five additional hotels undergoing significant repositionings or without comparable results in 2010 and 2009) increased 4.9%, or $17 million, to $345 million for the three months ended March 31, 2010 when compared to $328 million in the same period of 2009 due primarily to an increase in REVPAR.
REVPAR at our worldwide Same-Store Owned Hotels increased 5.7% to $125.22 for the three months ended March 31, 2010 when compared to the corresponding 2009 period. The increase in REVPAR at these worldwide Same-Store Owned Hotels resulted from an increase in occupancy rates to 63.6% in the three months ended March 31, 2010 when compared to 59.6% in the same period in 2009 partially offset by a 1.0% decrease in ADR to $196.76 for the three months ended March 31, 2010 compared to $198.71 for the corresponding 2009 period. REVPAR at Same-Store Owned Hotels in North America increased 4.6% for the three months ended March 31, 2010 when compared to the same period of 2009. REVPAR growth was particularly strong at our owned hotels in New York, New York, Scottsdale, Arizona and Toronto, Canada. REVPAR at our international Same-Store Owned Hotels increased by 7.9% for the three months ended March 31, 2010 when compared to the same period of 2009. REVPAR for Same-Store Owned Hotels internationally increased 0.8% excluding the favorable effects of foreign currency translation.
The increase in management fees, franchise fees and other income was primarily a result of an $8 million increase in management and franchise revenues to $151 million for the three months ended March 31, 2010 compared to $143 million in 2009. The increase was due to growth in REVPAR of existing hotels under management as well as the net addition of 40 managed and franchised hotels to our system since the first quarter of 2009.
As a result of applying ASU No. 2009-17, vacation ownership revenues in the first quarter 2010 increased $14 million compared to 2009. This increase was more than offset by lower originated contract sales of VOI inventory, timing of adjustments for percentage of completion accounting and other deferrals, and higher loan loss provisions. Originated contract sales of VOI inventory decreased 4.9% in the three months ended March 31, 2010 when compared to the same period in 2009 primarily due to the closure of fractional sales centers in 2009. Excluding fractional, originated contract sales decreased 0.8% compared to the same period of 2009. This decline is primarily driven by a 7.5% decrease in the average contract amount per vacation ownership unit sold to approximately $16,800, partially offset by a 3.6% increase in the number of contracts signed. The average contract amount per vacation ownership unit sold decreased primarily as a result of price reductions and a higher percentage of lower-priced biennial inventory. The number of contracts signed increased 3.6% when compared to 2009 due to higher closing efficiency partly offset by lower tour flow. The decrease in vacation ownership and residential sales and services was partially offset by a $1 million increase in residential revenue. Residential revenue in 2010 included $2 million of license fees in connection with four properties.
Other revenues from managed and franchised properties increased to $520 million for the three months ended March 31, 2010 compared to $468 million in 2009, primarily due to an increase in the number of managed and franchised hotels. These revenues represent reimbursements of costs incurred on behalf of managed hotel and vacation ownership properties and franchisees and relate primarily to payroll costs at managed properties where we are the employer. Since the reimbursements are made based upon the costs incurred with no added margin, these revenues and corresponding expenses have no effect on our operating income and our net income.
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