STARWOOD HOTELS & RESORTS
WORLDWIDE, INC.
UNAUDITED CONSOLIDATED STATEMENTS
OF INCOME
(In millions, except per Share
data)
Three Months Ended
Year Ended
December 31,
December 31,
-----------------------
-------------------------
%
%
2003 2002 Variance
2003 2002 Variance
------ ------ --------
------- ------ ---------
Revenues
Owned, leased and
consolidated joint
$ 797 $ 804
(0.9) venture hotels $ 3,085 $3,190
(3.3)
Other hotel and
183 166
10.2 leisure(a)
694 618 12.3
------ ------ --------
------- ------ ---------
980 970
1.0
3,779 3,808 (0.1)
Other revenues from
managed and
franchised
217 191
13.6 properties(b)
851 780 9.1
------ ------ --------
------- ------ ---------
1,197 1,161
3.1
4,630 4,588 0.9
Costs and Expenses
Owned, leased and
consolidated joint
611 611
-- venture hotels 2,392
2,350 (1.8)
Selling, general,
administrative and
129 108
(19.4) other(c)
540 426 (26.8)
Restructuring and
other special
(8) (2)
300.0 credits, net
(9) (7) 28.6
101 124
18.6 Depreciation
410 473 13.3
5
3 (66.7)Amortization
19 15 (26.7)
------ ------ --------
------- ------ ---------
838 844
0.7
3,352 3,257 (2.9)
Other expenses from
managed and
franchised
217 191
(13.6) properties(b)
851 780 (9.1)
------ ------ --------
------- ------ ---------
1,055 1,035
(1.9)
4,203 4,037 (4.1)
142 126
12.7 Operating income 427
551 (22.5)
Gain on sale of VOI
9
3 200.0 notes receivable
15 16 (6.2)
Equity earnings from
unconsolidated
2
(1) 300.0 ventures
12 8
50.0
Interest expense,
net of interest
income of $2, $1,
(63) (63)
-- $5, $2(d)
(282) (323) 12.7
Gain (loss) on asset
dispositions and
(4)
1 n/m impairments, net
(183) 3
n/m
------ ------ --------
------- ------ ---------
86 66
n/m
(11) 255 n/m
Income tax benefit
-- 25
n/m (expense)
113 (2) n/m
Minority equity in
2
(2) n/m net income
3 (2) n/m
------ ------ --------
------- ------ ---------
Income from
continuing
88 89
(0.1) operations
105 251 (58.2)
Discontinued
operations:
Loss from
operations, net
of taxes of $(1),
$2, $0 and $2(e) (2) (5)
60.0
Gain on
disposition,
net of taxes of
$0, $0, $40 and
--
5 n/m $(104)
206 109 89.0
------ ------ --------
------- ------ ---------
$ 87 $ 91
(4.4)Net income $
309 $ 355 (13.0)
====== ====== ========
======= ====== =========
Earnings Per Share
-- Basic
Continuing
$ 0.43 $ 0.44 (2.3) operations
$ 0.52 $ 1.24 (58.1)
Discontinued
-- 0.01
n/m operations
1.01 0.52 n/m
------ ------ --------
------- ------ ---------
$ 0.43 $ 0.45 (4.4)Net
income $ 1.53
$ 1.76 (13.1)
====== ====== ========
======= ====== =========
Earnings Per Share
-- Diluted
Continuing
$ 0.42 $ 0.44 (4.5) operations
$ 0.51 $ 1.22 (58.2)
Discontinued
-- 0.01
n/m operations
0.99 0.51 n/m
------ ------ --------
------- ------ ---------
$ 0.42 $ 0.45 (6.7)Net
income $ 1.50
$ 1.73 (13.3)
====== ====== ========
======= ====== =========
Weighted average
202 200
number of Shares 203
201
====== ======
======= ======
Weighted average
number of Shares
209 203
assuming dilution 207
205
====== ======
======= ======
----------
(a) Other hotel and leisure revenues include management
and franchise
fees earned from third party hotel
owners.
(b) The Company includes in revenues the reimbursement
of costs
incurred on behalf of managed hotel
property owners and
franchisees with no added margin and
includes in costs and
expenses these reimbursed costs. These
costs relate primarily to
payroll costs at managed properties
where the Company is the
employer.
(c) Selling, general, administrative and other expenses
include the
cost of sales of VOIs and other costs
of vacation ownership
operations.
(d) Interest expense is net of $0 and $8 million of discontinued
operations allocations for the three
and twelve month periods
ended December 31, 2003, respectively.
Interest expense is net of
$4 million and $0 of discontinued
operations allocations for the
three and twelve month periods ended
December 31, 2002,
respectively. Interest expense for
the twelve months ended
December 31, 2002 also includes $30
million of early debt
termination costs.
(e) For the periods presented, the Principe is reported
as a
discontinued operation as a result
of the sale of this hotel with
no continuing involvement.
n/m = not meaningful
-0-
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
CONSOLIDATED BALANCE SHEETS
(In millions, except share data)
December 31, December 31,
2003 2002
------------ ------------
Assets
Current assets:
Cash and cash equivalents
$ 427 $
108
Restricted cash
81 108
Accounts receivable, net of allowance
for
doubtful accounts of $53 and
$45
418 398
Inventories
215 214
Prepaid expenses and other
104 108
----------- -----------
Total current assets
1,245 936
Investments
415 434
Plant, property and equipment, net
7,123 6,911
Assets held for sale (a)
-- 839
Goodwill and intangible assets
2,488 2,570
Other assets
623 500
----------- -----------
$ 11,894 $ 12,190
=========== ===========
Liabilities and Stockholders' Equity
Current liabilities:
Short-term borrowings and current
maturities of long-term debt
(b) $
233 $ 870
Accounts payable
171 171
Accrued expenses
836 723
Accrued salaries, wages and benefits
228 178
Accrued taxes and other
176 188
----------- -----------
Total current liabilities
1,644 2,130
Long-term debt (b)
4,393 4,449
Deferred income taxes
898 986
Other liabilities
574 538
----------- -----------
7,509 8,103
----------- -----------
Minority interest
28 39
----------- -----------
Exchangeable units and Class B preferred
shares, at redemption value of $38.50
31 51
----------- -----------
Commitments and contingencies
Stockholders' equity:
Class A exchangeable preferred
shares of
the Trust; $0.01
par value; authorized
30,000,000 shares;
outstanding 480,880
and 493,968 shares
at December 31, 2003
and 2002, respectively
-- --
Corporation common stock;
$0.01 par
value; authorized
1,050,000,000 shares;
outstanding 201,812,126
and 199,579,542
shares at December
31, 2003 and 2002,
respectively
2 2
Trust Class B shares of
beneficial
interest; $0.01
par value; authorized
1,000,000,000 shares;
outstanding
201,812,126 and
199,579,542 shares at
December 31, 2003
and 2002,
respectively
2 2
Additional paid-in capital
4,952 4,905
Deferred compensation
(9) (14)
Accumulated other comprehensive income
(334) (474)
Accumulated deficit
(287) (424)
----------- -----------
Total stockholders' equity
4,326 3,997
----------- -----------
$ 11,894 $ 12,190
=========== ===========
----------
(a) Represents the carrying value of the plant, property
and equipment
for the Principe, Sardinia Assets
and the 18 non-core domestic
hotels at December 31, 2002. Effective
December 31, 2003, the
remaining two hotels that have not
been sold will no longer be
marketed for sale. Accordingly, the
carrying value was
reclassified to Plant, property, and
equipment, net at December
31, 2003.
(b) Excludes Starwood's share of unconsolidated joint
venture debt
aggregating approximately $410 million
and $355 million at
December 31, 2003 and 2002, respectively.
-0-
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Non-GAAP to GAAP Reconciliations - Historical Data
(In millions)
Three Months
Ended
Twelve Months Ended
December 31,
December 31,
----------------------------------------------------------------------
%
%
2003 2002
Variance
2003 2002 Variance
-------- -------- ---------
------- ------- ---------
Reconciliation
of Net Income
to EBITDA and
Adjusted
EBITDA
$ 87 $
91 (4.8)Net income
$ 309 $ 355 (13.0)
Interest
70
72 (2.8) expense(a)
312 356 12.4
Income tax
(1)
(23) n/m benefit (b)
(73) (100) n/m
108
131 17.6 Depreciation(c)
438 500 12.4
8
4 (100.0)Amortization(d)
26 20
(30)
-------- -------- ---------
------- ------- ---------
272
275 (1.1)EBITDA
1,012 1,131 (10.5)
(Gain) loss on
asset dispositions
and impairments,
4
(1) n/m net
183 (3) n/m
Discontinued
2
(9) n/m operations(e)
(252) (21) n/m
Restructuring
and other special
(8)
(2) 300.0 credits, net
(9) (7) 28.6
Foreign exchange
gains from
-
- - Argentina
- (30) n/m
Costs associated
with construction
1
3 66.7 remediation
4 8 50.0
-------- -------- ---------
------- ------- ---------
$ 271 $ 266
1.9 Adjusted EBITDA $ 938 $ 1,078 (13.0)
======== ======== =========
======= ======= =========
(a) Includes $5 million and $18 million of interest expense
related to
unconsolidated joint ventures for
the three and twelve month
periods ended December 31, 2003 and
$4 million and $16 million for
the three and twelve month periods
ended December 31, 2002. Also
includes $0 and $7 million of interest
expense allocated to
discontinued operations for the three
and twelve month periods
ended December 31, 2003 and $4 million
and $15 million of interest
expense allocated to discontinued
operations for the three and
twelve month periods ended December
31, 2002, respectively.
(b) Includes $(1) million and $40 million of taxes/(tax
benefits)
recorded, respectively, in discontinued
operations for the three
and twelve months ended December 31,
2003 and $2 million and
$(102) million of taxes/(tax benefits)
recorded in discontinued
operations for the three and twelve
months ended December 31,
2002, respectively.
(c) Includes $7 million and $27 million of Starwood's
share of
depreciation expense of unconsolidated
joint ventures for the
three and twelve month periods ended
December 31, 2003 and $6
million and $23 million for the three
and twelve month periods
ended December 31, 2002. Also includes
$0 and $1 million of
depreciation expense included in discontinued
operations for the
three and twelve months ended December
31, 2003 and $1 million and
$4 million for the three and twelve
month periods ended December
31, 2002.
(d) Includes $3 million and $7 million of Starwood's share
of
amortization expense of unconsolidated
joint ventures for the
three and twelve month periods ended
December 31, 2003 and $1
million and $5 million for the three
and twelve month periods
ended December 31, 2002.
(e) Excludes the interest expense, taxes, and depreciation
balances
already added back as noted in (a),
(b) and (c) above. Includes
the reversal of a $49 million (pre-tax)
liability, in the twelve
months ended December 31, 2003, related
to the 1999 divestiture of
the Company's gaming business which
is no longer deemed necessary.
-0-
Three Months Twelve Months
Ended Ended
December 31, December 31,
------------- -------------
2003 2002 2003 2002
----- ----- ----- -----
Cash Flow Data
Net income
$ 87 $ 91 $ 309 $ 355
Exclude:
Discontinued operations, net
1 (2) (204) (104)
----- ----- ----- -----
Income from continuing operations
88 89 105 251
Adjustment to income from continuing
operations and changes in working capital
156 50 655
437
----- ----- ----- -----
Cash from continuing operations
244 139 760 688
Cash from discontinued operations
1 6 11
18
----- ----- ----- -----
Cash from operating activities
$ 245 $ 145 $ 771 $ 706
===== ===== ===== =====
Cash from (used for) investing activities $(324)
$ (59) $ 510 $(286)
===== ===== ===== =====
Cash used for financing activities
$(289) $(108) $(979) $(427)
===== ===== ===== =====
-0-
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Non-GAAP
to GAAP Reconciliations - Future Performance
(In millions)
Three Months Twelve Months
Ended
Ended
March 31, 2004 December 31, 2004
--------------- -----------------
Net income
$ 16
$ 230
Interest expense
71
285
Income tax expense (benefit)
3
40
Depreciation and amortization
115
470
EBITDA
$ 205 $
1,025
============= ===============
-0-
STARWOOD
HOTELS & RESORTS WORLDWIDE, INC.
Hotel Results - Same Store (1)
For the Three Months Ended December 31, 2003
UNAUDITED
WORLDWIDE
--------------------------------
2003 2002
Var.
---------- ---------- ----------
140 Hotels
--------------------------------
OWNED HOTELS
REVPAR ($) 102.60
96.25 6.6%
ADR ($) 158.97
153.66 3.5%
OCCUPANCY (%) 64.5%
62.6% 1.9
60
--------------------------------
SHERATON
REVPAR ($) 85.96
79.49 8.1%
ADR ($) 135.40
130.73 3.6%
OCCUPANCY (%) 63.5%
60.8% 2.7
36
--------------------------------
WESTIN
REVPAR ($) 105.04
100.99 4.0%
ADR ($) 157.03
151.48 3.7%
OCCUPANCY (%) 66.9%
66.7% 0.2
12
--------------------------------
LUXURY COLLECTION
REVPAR ($) 212.06
199.91 6.1%
ADR ($) 366.13
349.34 4.8%
OCCUPANCY (%) 57.9%
57.2% 0.7
12
--------------------------------
W
REVPAR ($) 157.38
143.22 9.9%
ADR ($) 219.51
215.21 2.0%
OCCUPANCY (%) 71.7%
66.6% 5.1
20
--------------------------------
OTHER
REVPAR ($) 71.21
68.73 3.6%
ADR ($) 117.59
114.27 2.9%
OCCUPANCY (%) 60.6%
60.1% 0.5
NORTH AMERICA
--------------------------------
2003 2002
Var.
---------- ---------- ----------
95 Hotels
--------------------------------
OWNED HOTELS
REVPAR ($) 102.56
97.98 4.7%
ADR ($) 155.91
153.91 1.3%
OCCUPANCY (%) 65.8%
63.7% 2.1
37
--------------------------------
SHERATON
REVPAR ($) 90.07
85.43 5.4%
ADR ($) 138.26
136.31 1.4%
OCCUPANCY (%) 65.1%
62.7% 2.4
22
--------------------------------
WESTIN
REVPAR ($) 94.95
92.02 3.2%
ADR ($) 137.64
135.56 1.5%
OCCUPANCY (%) 69.0%
67.9% 1.1
5
--------------------------------
LUXURY COLLECTION
REVPAR ($) 232.06
221.37 4.8%
ADR ($) 389.01
385.81 0.8%
OCCUPANCY (%) 59.7%
57.4% 2.3
12
--------------------------------
W
REVPAR ($) 157.38
143.22 9.9%
ADR ($) 219.51
215.21 2.0%
OCCUPANCY (%) 71.7%
66.6% 5.1
19
--------------------------------
OTHER
REVPAR ($) 66.38
69.18 -4.0%
ADR ($) 116.79
122.00 -4.3%
OCCUPANCY (%) 56.8%
56.7% 0.1
INTERNATIONAL(2)
---------------------------------
2003 2002
Var.
---------- ---------- -----------
45 Hotels
---------------------------------
OWNED HOTELS
REVPAR ($) 102.71
91.24 12.6%
ADR ($) 168.45
152.90 10.2%
OCCUPANCY (%) 61.0%
59.7% 1.3
23
---------------------------------
SHERATON
REVPAR ($) 77.56
67.35 15.2%
ADR ($) 129.07
118.18 9.2%
OCCUPANCY (%) 60.1%
57.0% 3.1
14
---------------------------------
WESTIN
REVPAR ($) 138.15
131.25 5.3%
ADR ($) 230.13
209.70 9.7%
OCCUPANCY (%) 60.0%
62.6% -2.6
7
---------------------------------
LUXURY COLLECTION
REVPAR ($) 183.41
168.81 8.6%
ADR ($) 330.86
296.13 11.7%
OCCUPANCY (%) 55.4%
57.0% -1.6
W
REVPAR ($)
ADR ($)
OCCUPANCY (%)
1
---------------------------------
OTHER
REVPAR ($) 104.75
65.64 59.6%
ADR ($) 121.27
78.50 54.5%
OCCUPANCY (%) 86.4%
83.6% 2.8
(1)Hotel Results exclude 25 hotels sold or closed during
2002 and 2003
(2)See next page for breakdown by division
-0-
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Hotel Results - Same Store (1)
For the Three Months Ended December 31, 2003
UNAUDITED
EUROPE
--------------------------------
2003 2002
Var.
---------- ---------- ----------
29 Hotels
--------------------------------
OWNED HOTELS
REVPAR ($) 135.79
124.82 8.8%
ADR ($) 227.05
202.62 12.1%
OCCUPANCY (%) 59.8%
61.6% -1.8
11
--------------------------------
SHERATON
REVPAR ($) 97.72
90.99 7.4%
ADR ($) 160.72
145.61 10.4%
OCCUPANCY (%) 60.8%
62.5% -1.7
11
--------------------------------
WESTIN
REVPAR ($) 164.51
149.65 9.9%
ADR ($) 271.68
238.97 13.7%
OCCUPANCY (%) 60.6%
62.6% -2.0
7
--------------------------------
LUXURY COLLECTION
REVPAR ($) 183.41
168.81 8.6%
ADR ($) 330.86
296.13 11.7%
OCCUPANCY (%) 55.4%
57.0% -1.6
OTHER
REVPAR ($)
ADR ($)
OCCUPANCY (%)
LATIN AMERICA
--------------------------------
2003 2002
Var.
---------- ---------- ----------
12 Hotels
--------------------------------
OWNED HOTELS
REVPAR ($) 55.54
52.58 5.6%
ADR ($) 99.05
100.72 -1.7%
OCCUPANCY (%) 56.1%
52.2% 3.9
9
--------------------------------
SHERATON
REVPAR ($) 51.69
46.34 11.5%
ADR ($) 93.20
92.66 0.6%
OCCUPANCY (%) 55.5%
50.0% 5.5
3
--------------------------------
WESTIN
REVPAR ($) 72.18
81.77 -11.7%
ADR ($) 122.91
130.84 -6.1%
OCCUPANCY (%) 58.7%
62.5% -3.8
LUXURY COLLECTION
REVPAR ($)
ADR ($)
OCCUPANCY (%)
OTHER
REVPAR ($)
ADR ($)
OCCUPANCY (%)
ASIA PACIFIC
---------------------------------
2003 2002 Var.
---------- ---------- -----------
4 Hotels
---------------------------------
OWNED HOTELS
REVPAR ($) 111.45
72.42 53.9%
ADR ($) 139.92
98.59 41.9%
OCCUPANCY (%) 79.7%
73.5% 6.2
3
---------------------------------
SHERATON
REVPAR ($) 115.56
76.67 50.7%
ADR ($) 153.01
114.25 33.9%
OCCUPANCY (%) 75.5%
67.1% 8.4
WESTIN
REVPAR ($)
ADR ($)
OCCUPANCY (%)
LUXURY COLLECTION
REVPAR ($)
ADR ($)
OCCUPANCY (%)
1
---------------------------------
OTHER
REVPAR ($) 104.75
65.64 59.6%
ADR ($) 121.27
78.50 54.5%
OCCUPANCY (%) 86.4%
83.6% 2.8
(1) Hotel Results exclude 25 hotels sold or closed during
2002 and
2003
-0-
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Hotel Results - Same Store (1)
For the Twelve Months Ended December 31, 2003
UNAUDITED
WORLDWIDE
--------------------------------
2003 2002
Var.
---------- ---------- ----------
140 Hotels
--------------------------------
OWNED HOTELS
REVPAR ($) 98.34
97.10 1.3%
ADR ($) 152.12
151.69 0.3%
OCCUPANCY (%) 64.6%
64.0% 0.6
60
--------------------------------
SHERATON
REVPAR ($) 80.01
80.20 -0.2%
ADR ($) 127.94
129.42 -1.1%
OCCUPANCY (%) 62.5%
62.0% 0.5
36
--------------------------------
WESTIN
REVPAR ($) 109.43
107.01 2.3%
ADR ($) 157.70
154.38 2.2%
OCCUPANCY (%) 69.4%
69.3% 0.1
12
--------------------------------
LUXURY COLLECTION
REVPAR ($) 191.27
193.48 -1.1%
ADR ($) 336.88
333.85 0.9%
OCCUPANCY (%) 56.8%
58.0% -1.2
12
--------------------------------
W
REVPAR ($) 141.90
130.92 8.4%
ADR ($) 203.17
203.28 -0.1%
OCCUPANCY (%) 69.8%
64.4% 5.4
20
--------------------------------
OTHER
REVPAR ($) 68.99
70.69 -2.4%
ADR ($) 111.77
112.89 -1.0%
OCCUPANCY (%) 61.7%
62.6% -0.9
NORTH AMERICA
--------------------------------
2003 2002
Var.
---------- ---------- ----------
95 Hotels
--------------------------------
OWNED HOTELS
REVPAR ($) 98.62
98.81 -0.2%
ADR ($) 148.03
150.84 -1.9%
OCCUPANCY (%) 66.6%
65.5% 1.1
37
--------------------------------
SHERATON
REVPAR ($) 84.41
86.11 -2.0%
ADR ($) 129.31
133.62 -3.2%
OCCUPANCY (%) 65.3%
64.4% 0.9
22
--------------------------------
WESTIN
REVPAR ($) 99.37
98.45 0.9%
ADR ($) 138.84
139.26 -0.3%
OCCUPANCY (%) 71.6%
70.7% 0.9
5
--------------------------------
LUXURY COLLECTION
REVPAR ($) 202.98
211.91 -4.2%
ADR ($) 338.95
357.78 -5.3%
OCCUPANCY (%) 59.9%
59.2% 0.7
12
--------------------------------
W
REVPAR ($) 141.90
130.92 8.4%
ADR ($) 203.17
203.28 -0.1%
OCCUPANCY (%) 69.8%
64.4% 5.4
19
--------------------------------
OTHER
REVPAR ($) 67.78
72.68 -6.7%
ADR ($) 114.44
119.84 -4.5%
OCCUPANCY (%) 59.2%
60.7% -1.5
INTERNATIONAL(2)
--------------------------------
2003 2002 Var.
---------- ---------- ----------
45 Hotels
--------------------------------
OWNED HOTELS
REVPAR ($) 97.52
92.15 5.8%
ADR ($) 165.37
154.37 7.1%
OCCUPANCY (%) 59.0%
59.7% -0.7
23
--------------------------------
SHERATON
REVPAR ($) 71.07
68.18 4.2%
ADR ($) 124.74
119.75 4.2%
OCCUPANCY (%) 57.0%
56.9% 0.1
14
--------------------------------
WESTIN
REVPAR ($) 142.03
135.56 4.8%
ADR ($) 227.85
209.48 8.8%
OCCUPANCY (%) 62.3%
64.7% -2.4
7
--------------------------------
LUXURY COLLECTION
REVPAR ($) 173.72
165.77 4.8%
ADR ($) 333.31
295.82 12.7%
OCCUPANCY (%) 52.1%
56.0% -3.9
W
REVPAR ($)
ADR ($)
OCCUPANCY (%)
1
--------------------------------
OTHER
REVPAR ($) 77.36
57.09 35.5%
ADR ($) 97.95
75.10 30.4%
OCCUPANCY (%) 79.0%
76.0% 3.0
(1) Hotel Results exclude 25 hotels sold or closed during
2002 and
2003
(2) See next page for breakdown by division
-0-
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Hotel Results - Same Store (1)
For the Twelve Months Ended December 31, 2003
UNAUDITED
EUROPE
--------------------------------
2003 2002
Var.
---------- ---------- ----------
29 Hotels
--------------------------------
OWNED HOTELS
REVPAR ($) 133.59
125.76 6.2%
ADR ($) 225.01
200.90 12.0%
OCCUPANCY (%) 59.4%
62.6% -3.2
11
--------------------------------
SHERATON
REVPAR ($) 95.59
91.43 4.5%
ADR ($) 156.55
142.72 9.7%
OCCUPANCY (%) 61.1%
64.1% -3.0
11
--------------------------------
WESTIN
REVPAR ($) 165.69
153.24 8.1%
ADR ($) 273.83
240.45 13.9%
OCCUPANCY (%) 60.5%
63.7% -3.2
7
--------------------------------
LUXURY COLLECTION
REVPAR ($) 173.72
165.77 4.8%
ADR ($) 333.31
295.82 12.7%
OCCUPANCY (%) 52.1%
56.0% -3.9
OTHER
REVPAR ($)
ADR ($)
OCCUPANCY (%)
LATIN AMERICA
--------------------------------
2003 2002 Var.
---------- ---------- ----------
12 Hotels
--------------------------------
OWNED HOTELS
REVPAR ($) 52.51
55.57 -5.5%
ADR ($) 97.99
105.23 -6.9%
OCCUPANCY (%) 53.6%
52.8% 0.8
9
--------------------------------
SHERATON
REVPAR ($) 46.18
49.09 -5.9%
ADR ($) 91.42
98.73 -7.4%
OCCUPANCY (%) 50.5%
49.7% 0.8
3
--------------------------------
WESTIN
REVPAR ($) 80.33
86.30 -6.9%
ADR ($) 119.73
127.95 -6.4%
OCCUPANCY (%) 67.1%
67.4% -0.3
LUXURY COLLECTION
REVPAR ($)
ADR ($)
OCCUPANCY (%)
OTHER
REVPAR ($)
ADR ($)
OCCUPANCY (%)
ASIA PACIFIC
--------------------------------
2003 2002 Var.
---------- ---------- ----------
4 Hotels
--------------------------------
OWNED HOTELS
REVPAR ($) 86.07
65.33 31.7%
ADR ($) 118.08
96.25 22.7%
OCCUPANCY (%) 72.9%
67.9% 5.0
3
--------------------------------
SHERATON
REVPAR ($) 91.43
70.50 29.7%
ADR ($) 132.27
112.29 17.8%
OCCUPANCY (%) 69.1%
62.8% 6.3
WESTIN
REVPAR ($)
ADR ($)
OCCUPANCY (%)
LUXURY COLLECTION
REVPAR ($)
ADR ($)
OCCUPANCY (%)
1
--------------------------------
OTHER
REVPAR ($) 77.36
57.09 35.5%
ADR ($) 97.95
75.10 30.4%
OCCUPANCY (%) 79.0%
76.0% 3.0
(1) Hotel Results exclude 25 hotels sold or closed during
2002 and
2003
-0-
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Debt Portfolio Summary
As of December 31, 2003
UNAUDITED
Balance
Interest (in
% of
Debt
Terms millions) Portfolio
------------------------------- -------------
---------- ----------
Floating Rate Debt:
Senior credit facility
Revolving credit
CBA + 162.5
facility
$15 0%
Term loan
LIBOR + 162.5 $300
7%
---------- ----------
315 7%
Mortgages and other
Various 251
5%
Interest rate swaps
Various 1,050
23%
---------- ----------
Total Floating
1,616 35%
Fixed Rate Debt:
Sheraton Holding public debt(1)
1,067 23%
Senior notes (2)
1,532 33%
Convertible debt - Series B
326 7%
Convertible debt - 2003
360 8%
Mortgages and other
775 17%
Interest rate swaps
(1,050) -23%
---------- ----------
Total Fixed
3,010 65%
---------- ----------
Total Debt
$4,626 100%
========== ==========
Interest Avg Maturity
Debt
Rate (in years)
------------------------------- ----------------
--------------
Floating Rate Debt:
Senior credit facility
Revolving credit
facility
4.34% 2.8
Term loan
2.75% 2.0
---------------- --------------
2.82% 2.0
Mortgages and other
5.08% 1.8
Interest rate swaps
5.07%
----------------
Total Floating
4.63% 1.9
Fixed Rate Debt:
Sheraton Holding public debt(1)
6.47% 9.0
Senior notes (2)
7.04% 6.0
Convertible debt - Series B
3.25% 2.8 (3)
Convertible debt - 2003
3.50% 2.4
Mortgages and other
7.15% 8.2
Interest rate swaps
7.11%
----------------
Total Fixed
5.90% 6.6
----------------
Total Debt
5.46% 6.0
================
-0-
----------------------------------------------
Maturities
----------------------------------------------
less than 1 year $ 233
2-3 years 1,532
4-5 years 792
greater than 5 years 2,069
-----------
$ 4,626
===========
----------------------------------------------
(1) Balance consists of outstanding public debt of $1.047
billion and
a $14 million fair value adjustment related to the unamortized
gain on
fixed to floating interest rate swaps terminated in September
2002 and
a $6 million fair value adjustment related to current
fixed to
floating interest rate swaps
(2) Balance consists of outstanding public debt of $1.495
billion and
a $30 million fair value adjustment related to the unamortized
gain on
fixed to floating interest rate swaps terminated in September
2002 and
a $7 million fair value adjustment related to current
fixed to
floating interest rate swaps
(3) Average maturity reflects the maturity date of the
revolving
credit facility which would be used to refinance the
amount put to the
Company
-0-
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Hotels without Comparable
Results & Other Selected Items
As of December 31, 2003
UNAUDITED ($ millions)
Properties sold or closed in 2003:
Property
Location
------------------------------------
---------------------
Lenox Inn
Atlanta, GA
Sheraton Mofarrej
Sao Paulo, Brazil
Hotel Cala di Volpe
Costa Smeralda, Italy
Hotel Pitrizza
Costa Smeralda, Italy
Hotel Romazzino
Costa Smeralda, Italy
Cervo Hotel & Conference Center
Costa Smeralda, Italy
Hotel Principe di Savoia
Milan, Italy
Hilton Novi
Novi, MI
Westin Southfield
Southfield, MI
Residence Inn Tyson's Corner
Vienna, VA
Sheraton Buckhead
Atlanta, GA
Sheraton College Park
Beltsville, MD
Sheraton Chicago Northwest
Arlington Heights, IL
Sheraton Norfolk
Norfolk, VA
Hilton Sonoma County
Santa Rosa, CA
Westin Stamford
Stamford, CT
Wayfarer Inn
Bedford, NH
Sheraton Ferncroft
Danvers, MA
Sheraton Danbury
Danbury, CT
Sheraton Gainesville
Gainesville, FL
Baltimore Marriott
Baltimore, MD
Arlington Marriott
Arlington, VA
North Charleston Sheraton
Charleston, SC
Properties sold or closed in 2002:
Property
Location
------------------------------------
---------------------
Clarion Hotel Allentown
Allentown, PA
Doubletree Hotel Minneapolis Airport
Minneapolis, MN
-0-
Selected Balance Sheet and Cash Flow Items:
Cash and cash equivalents (including restricted
cash of $81 million)
$ 508
Debt level
$ 4,626
-0-
Revenues and Expenses Associated with Assets Sold in 2003
(1):
Q1 Q2
Q3 Q4 Full
Year
--------------------------------------------------
2003
Revenues
$ 42 $ 61 $
7 $ - $ 110
Expenses
$ 38 $ 45 $
6 $ - $
89
2002
Revenues
$ 41 $ 65 $
95 $ 49 $ 250
Expenses
$ 35 $ 45 $
54 $ 38 $ 172
(1) Results consist of 20 hotels (excludes the Hotel Principe
di
Savoia reported in discontinued operations)
that have been sold in
2003. These amounts are included in
the revenues and expenses from
owned, leased and consolidated joint
venture hotels.
Top Ten Metropolitan Areas as a % of Full Year 2003 Owned
North
America EBITDA:
Metropolitan Area:
% EBITDA
-----------
New York, NY
13.5%
San Diego, CA
10.0%
Boston, MA
9.6%
Phoenix, AZ
5.9%
Seattle, WA
5.8%
Atlanta, GA
5.0%
Maui, HI
4.3%
Los Angeles - Long Beach, CA
3.8%
Indianapolis, IN
3.4%
Toronto, Canada
3.2%
-----------
Total Top Ten Metropolitan Areas
64.5%
-0-
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Capital Expenditures
For the Three
and Twelve Months Ended December 31, 2003
UNAUDITED ($ millions)
QTD YTD
Capital Expenditures:
Owned, Leased and Consolidated Joint Venture
Hotels
$ 75 $ 176
Corporate/IT
8 26
-------- --------
Subtotal
83 202
Vacation Ownership Capital Expenditures:
Capital expenditures (includes land acquisition)
8 48
Inventory
27 91
-------- --------
Subtotal
35 139
Development Capital (1)
252 302
-------- --------
Total Capital Expenditures
$ 370 $ 643
======== ========
(1) Includes the purchase of 16% of the outstanding senior
debt of Le
Meridien Hotels & Resorts Ltd
for approximately $200 million in
December 2003 and St. Regis San Francisco
additions of $21 QTD and
$57 YTD
-0-
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Summary of Portfolio by Properties & Rooms
As of December 31, 2003
UNAUDITED
PROPERTIES
---------------------------------
Lux. Col./
Sheraton Westin St. Regis
---------------------------------
Ownership Type
--------------------------------
Owned, leased & consolidated JVs
58 36
14
Unconsolidated joint ventures
28 10
2
---------------------------------
Equity interest properties
86 46
16
Managed (third-party owned)
145 46
21
Franchised, represented &
referral
163 29
12
---------------------------------
Total
394 121
49
=================================
ROOMS
---------------------------------
Lux. Col./
Sheraton Westin St. Regis
---------------------------------
Ownership Type
--------------------------------
Owned, leased & consolidated JVs
24,079 13,638 3,056
Unconsolidated joint ventures
10,515 4,495
441
---------------------------------
Equity interest properties
34,594 18,133 3,497
Managed (third-party owned)
49,844 23,163 3,317
Franchised, represented &
referral
50,210 10,255 1,412
---------------------------------
Total
134,648 51,551 8,226
=================================
PROPERTIES
--------------------------------------
Four
Points W Other
Total
--------------------------------------
Ownership Type
--------------------------------
Owned, leased & consolidated JVs
7 12
13 140
Unconsolidated joint ventures
1 1
1 43
--------------------------------------
Equity interest properties
8 13
14 183
Managed (third-party owned)
22 5
4 243
Franchised, represented &
referral
108 -
- 312
--------------------------------------
Total
138 18
18 738
======================================
ROOMS
--------------------------------------
Four
Points W Other
Total
--------------------------------------
Ownership Type
--------------------------------
Owned, leased & consolidated JVs
1,769 4,371 3,250
50,163
Unconsolidated joint ventures
128 237 132
15,948
--------------------------------------
Equity interest properties
1,897 4,608 3,382
66,111
Managed (third-party owned)
3,963 856 1,029
82,172
Franchised, represented &
referral
19,087 -
- 80,964
--------------------------------------
Total
24,947 5,464 4,411 229,247
====================================== |