The second quarter financial results of Starwood Hotels & Resorts Worldwide, White Plains, New York, reflected the recovery of the hotel industry with overall income and RevPAR increases.
Net income was US$131 million and US$0.68 per share in the second quarter of 2011 compared to US$114 million and US$0.61 per share in the second quarter of 2010. Income from continuing operations was US$150 million in the second quarter of 2011 compared to US$79 million in the second quarter of 2010. Management fees, franchise fees and other income increased 13.6% compared to 2010. Meanwhile RevPAR for same-store hotels was up 11.8% year-on-year.
“We continue to see strong demand across both business and leisure travelers. This demand fueled growth across each of our nine distinct and compelling brands,” said Starwood CEO Frits van Paasschen. “Our efforts to hold the line on costs enabled us to beat EBITDA and EPS expectations in the quarter.”
The declining U.S. dollar value had a significant impact on earnings as did the Starwood’s luxury brands outperforming the rest of the portfolio, according to David Loeb, analyst with Robert W. Baird & Co.
RevPAR in the second quarter increased year-on-year in every region except Africa and the Middle East, which declined 7.2%. Latin America increased 17.1%, Europe 12%, North America 8.7% and Asia Pacific 7.3%. Divided among Starwood’s brands, RevPAR for St. Regis/Luxury Collection increased the most year-on-year at 20.6% with W Hotels following at 16.9%. All the brands posted increases in RevPAR.