Exhibit 99.1

 

CONTACT:		Jason Koval
		(203) 351-3500

FOR IMMEDIATE RELEASE

February 2, 2012

 

 

STARWOOD REPORTS FOURTH QUARTER 2011 RESULTS

STAMFORD, CT, February 2, 2012 – Starwood Hotels & Resorts Worldwide, Inc. (NYSE: HOT) today reported fourth quarter 2011 financial results.

Fourth Quarter 2011 Highlights

 

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Excluding special items, EPS from continuing operations was $0.71, including income from the St. Regis Bal Harbour residential project. Including special items, EPS from continuing operations was $0.80, including an income tax benefit of $0.40 primarily related to the use of tax capital losses, offset by charges totaling $0.31 primarily related to an unfavorable legal decision, the early extinguishment of debt and hotel impairments.

 

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Adjusted EBITDA was $321 million, which included $33 million of EBITDA from the St. Regis Bal Harbour residential project, up 19.3% compared to 2010.

 

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Excluding special items, income from continuing operations was $140 million, including income from the St. Regis Bal Harbour residential project. Including special items, income from continuing operations was $158 million.

 

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Worldwide System-wide REVPAR for Same-Store Hotels increased 5.9% (5.8% in constant dollars) compared to 2010. System-wide REVPAR for Same-Store Hotels in North America increased 7.7% (7.6% in constant dollars).

 

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Management fees, franchise fees and other income increased 12.0% compared to 2010.

 

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Worldwide Same-Store company-operated gross operating profit margins increased approximately 110 basis points compared to 2010.

 

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Worldwide REVPAR for Starwood branded Same-Store Owned Hotels increased 5.7% (5.0% in constant dollars) compared to 2010.

 

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Margins at Starwood branded Same-Store Owned Hotels Worldwide increased approximately 230 basis points compared to 2010.

 

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Earnings from our vacation ownership and residential business increased approximately $40 million compared to 2010, including $33 million of earnings from the St. Regis Bal Harbour residential project.

 

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During the quarter, the Company signed 36 hotel management and franchise contracts representing approximately 7,600 rooms and opened 28 hotels and resorts with approximately 7,900 rooms.

 

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Fourth Quarter 2011 Earnings Summary

Starwood Hotels & Resorts Worldwide, Inc. (“Starwood” or the “Company”) today reported EPS from continuing operations for the fourth quarter of 2011 of $0.80 compared to $1.08 in the fourth quarter of 2010. Excluding special items, EPS from continuing operations was $0.71 for the fourth quarter of 2011, including income from the St. Regis Bal Harbour residential project (“Bal Harbour”), compared to $0.52 in the fourth quarter of 2010. Special items in the fourth quarter of 2011 included a pre-tax charge of $98 million, representing a charge of approximately $70 million related to an unfavorable legal decision, a charge of $14 million related to certain hotel impairments and a charge of $16 million related to costs associated with the early extinguishment of debt. Special items in the fourth quarter of 2011 also included an income tax benefit of $116 million, primarily associated with the utilization of capital losses which had previously been fully reserved and the tax effects of the special items discussed above. Special items in the fourth quarter of 2010 included a pre-tax benefit of $69 million, primarily related to the favorable settlement of a lawsuit. Special items in the fourth quarter of 2010 also included a $38 million income tax benefit primarily related to the favorable settlement with the IRS regarding the 1998 disposition of World Directories, Inc. Excluding special items, the effective income tax rate in the fourth quarter of 2011 was 28.3%, including income from Bal Harbour, compared to 24.9% in the fourth quarter of 2010.

Income from continuing operations was $158 million in the fourth quarter of 2011 compared to $206 million in the fourth quarter of 2010. Excluding special items, income from continuing operations was $140 million in the fourth quarter of 2011, including income from Bal Harbour, compared to $99 million in the fourth quarter of 2010.

Net income was $167 million and $0.85 per share in the fourth quarter of 2011 compared to $339 million and $1.78 per share in the fourth quarter of 2010. In addition to the special items discussed above, 2010 results benefited from a gain of $132 million reflected in discontinued operations related to the final settlement with the IRS regarding the 1998 disposition of World Directories, Inc.

Frits van Paasschen, CEO said, “We grew worldwide systemwide REVPAR by 5.8%, delivering strong fourth quarter EBITDA and EPS. Each of our nine brands performed well, driving REVPAR index gains for the tenth quarter in a row.”

“Our strong and growing presence in the emerging markets fueled almost 21,000 room openings in 2011, the most in our Company’s history. These openings bring our five year total to 389 new hotels. In other words, over one-third of our 1,090 hotels are newly opened. When combined with a full year REVPAR increase of 7.4%, our fees jumped 14.3%, a strong acceleration from 2010’s growth rate. As we look to 2012, it is shaping up to be another record year of room additions and strong REVPAR growth.”

“Our efforts to Own the Global Guest are helping us grow faster than the market and driving returns for owners and shareholders. The changes we have made to reinvent the SPG program should allow us to deepen the relationships with our loyal guests as well as attract the next generation of global travel elites.”

 

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Year Ended December 31, 2011 Earnings Summary

Income from continuing operations was $502 million for the year ended December 31, 2011 compared to $310 million in the same period in 2010. Excluding special items, income from continuing operations was $378 million for the year ended December 31, 2011, including income from Bal Harbour, compared to $237 million in the same period in 2010. In addition to the fourth quarter special items discussed above, the results for the year ended December 31, 2011 included an income tax benefit of approximately $92 million, primarily as a result of the favorable settlement of an IRS audit and tax benefits associated with asset sales. Excluding special items, the effective income tax rate for the year ended December 31, 2011 was 26.1%, including income from Bal Harbour, when compared to 21.3% in the same period in 2010.

Net income was $489 million and $2.51 per share for the year ended December 31, 2011 compared to $477 million and $2.51 per share in the same period in 2010. In addition to the special items discussed above, 2010 benefited from a gain of $168 million reflected in discontinued operations related to the final settlement with the IRS regarding the 1998 disposition of World Directories, Inc. and a tax benefit in connection with the sale of one wholly-owned hotel.

Adjusted EBITDA was $1.032 billion for the year ended December 31, 2011, including $27 million of EBITDA from Bal Harbour, an increase of approximately 17.4% compared to $879 million in the same period in 2010.

Fourth Quarter 2011 Operating Results

Management and Franchise Revenues

Worldwide System-wide REVPAR for Same-Store Hotels increased 5.9% (5.8% in constant dollars) compared to the fourth quarter of 2010. International System-wide REVPAR for Same-Store Hotels increased 3.7% (3.5% in constant dollars).

Changes in REVPAR for Worldwide System-wide Same-Store Hotels by region:

 

		REVPAR
Region		Reported				Constant dollars
North America			7.7	%			7.6	%
Europe			0.2	%			0.8	%
Asia Pacific			6.6	%			5.2	%
Africa and the Middle East			(1.0	)%			0.2	%
Latin America			9.6	%			9.6	%

Increases in REVPAR for Worldwide System-wide Same-Store Hotels by brand:

 

		REVPAR
Brand		Reported				Constant dollars
St. Regis/Luxury Collection			6.2	%			6.7	%
W Hotels			7.8	%			8.2	%
Westin			8.2	%			7.9	%
Sheraton			4.3	%			4.0	%
Le Méridien			1.2	%			1.6	%
Four Points by Sheraton			8.1	%			7.0	%
Aloft			12.5	%			12.8	%

 

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Worldwide Same-Store company-operated gross operating profit margins increased approximately 110 basis points compared to 2010. International gross operating profit margins for Same-Store company-operated properties increased 10 basis points, negatively impacted by political unrest in the Middle East and North Africa. North American Same-Store company-operated gross operating profit margins increased approximately 230 basis points, driven by REVPAR increases and cost controls.

Management fees, franchise fees and other income were $234 million, up $25 million, or 12.0% from the fourth quarter of 2010. Management fees increased 3.9% to $133 million and franchise fees increased 11.9% to $47 million.

For the full year 2011, Worldwide System-wide REVPAR for Same-Store Hotels increased 9.7% (7.4% in constant dollars) compared to the full year 2010. Worldwide Same-Store company-operated gross operating profit margins increased 90 basis points. Management fees, franchise fees and other income were $814 million, up $102 million, or 14.3% compared to the full year 2010. Management fees increased 11.2% to $455 million and franchise fees increased 16.1% to $187 million.

Development

During the fourth quarter of 2011, the Company signed 36 hotel management and franchise contracts, representing approximately 7,600 rooms, of which 25 are new builds and 11 are conversions from other brands. At December 31, 2011, the Company had over 350 hotels in the active pipeline representing almost 90,000 rooms.

During the fourth quarter of 2011, 28 new hotels and resorts (representing approximately 7,900 rooms) entered the system, including the St. Regis Sanya Resort (China, 401 rooms), Le Méridien Coimbatore (India, 254 rooms), St. Regis Saadiyat Island (United Arab Emirates, 377 rooms), The Westin Playa Bonita (Panama, 611 rooms) and Sheraton Kansas City at Crown Center (Missouri, 730 rooms). Ten properties (representing approximately 1,600 rooms) were removed from the system during the quarter.

For the full year 2011, the Company signed 112 hotel management and franchise contracts (representing approximately 28,800 rooms). For the full year 2011, 81 new hotels and resorts (representing approximately 20,900 rooms) entered the system and 32 properties (representing approximately 8,200 rooms) left the system.

Owned, Leased and Consolidated Joint Venture Hotels

Worldwide REVPAR at Starwood branded Same-Store Owned Hotels increased 5.7% (5.0% in constant dollars) in the fourth quarter of 2011 when compared to 2010. REVPAR at Starwood branded Same-Store Owned Hotels in North America increased 5.5% (5.3% in constant dollars). Internationally, Starwood branded Same-Store Owned Hotel REVPAR increased 6.0% (4.7% in constant dollars).

Revenues at Starwood branded Same-Store Owned Hotels in North America increased 4.4% while costs and expenses increased 0.8% when compared to 2010. Margins at these hotels increased approximately 270 basis points.

 

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Revenues at Starwood branded Same-Store Owned Hotels Worldwide increased 4.5% (3.8% in constant dollars) while costs and expenses increased 1.5% (0.7% in constant dollars) when compared to 2010. Margins at these hotels increased approximately 230 basis points.

Revenues at owned, leased and consolidated joint venture hotels were $439 million, compared to $459 million in 2010. Expenses at owned, leased and consolidated joint venture hotels were $346 million compared to $367 million in 2010. Fourth quarter results were impacted by six renovations and four asset sales.

For the full year 2011, Worldwide REVPAR at Starwood branded Same-Store Owned Hotels increased 12.4% (8.7% in constant dollars) when compared to the full year 2010. Margins at these hotels increased approximately 190 basis points.

Vacation Ownership

Total vacation ownership revenues increased 1.5% to $137 million in the fourth quarter of 2011 when compared to 2010. Originated contract sales of vacation ownership intervals increased 6.2% primarily due to increased tour flow from new buyers and improved sales and marketing performance. The number of contracts signed increased 4.3% when compared to 2010 and the average price per vacation ownership unit sold increased 1.4% to approximately $14,500, driven by inventory mix.

For the full year 2011, total vacation ownership revenues increased 7.6% to $566 million when compared to the full year 2010. The number of contracts signed increased 6.4% and the average price per vacation ownership unit sold was flat at approximately $14,900.

Residential

During the fourth quarter of 2011, the Company’s residential revenues were $127 million compared to $1 million in 2010. Residential revenues in the fourth quarter of 2011 included $121 million of revenues from the sale of residential units at Bal Harbour which received certificate of occupancy during the quarter. During the fourth quarter of 2011, upon receiving the certificate of occupancy, the sales of 36 units were closed and the Company realized incremental cash proceeds of $74 million associated with these units.

Selling, General, Administrative and Other

Selling, general, administrative and other expenses increased 11.6% to $96 million compared to $86 million in 2010. The increase was primarily due to a reimbursement of legal costs in 2010 as a result of a favorable legal settlement.

For the full year 2011, selling, general, administrative and other expenses increased 2.3% to $352 million compared to $344 million in the full year 2010.

Legal Decision

In November 2011, a subsidiary of the Company received an unfavorable legal decision. As a result, the Company recognized a $70 million pre-tax charge. The legal decision is not final and the Company intends to appeal.

 

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Capital

Gross capital spending during the quarter included approximately $83 million of maintenance capital and $67 million of development capital. The Company realized net cash flow of $62 million from vacation ownership interest (“VOI”) and residential inventory, primarily related to Bal Harbour.

For the full year 2011, capital spending included $253 million of maintenance capital and $209 million of development capital. Net investment spending on VOI and residential inventory was $15 million.

Dividends

In November 2011, the Company’s Board of Directors increased its annual dividend by 67% to $0.50 per share. The dividend was paid by the Company on December 30, 2011 to holders of record on December 15, 2011.

Balance Sheet

At December 31, 2011, the Company had gross debt of $2.197 billion, excluding $532 million of debt associated with securitized vacation ownership notes receivable. Additionally, the Company had cash and cash equivalents of $666 million (including $212 million of restricted cash), and net debt of $1.531 billion, compared to net debt of $1.675 billion as of September 30, 2011. Net debt at December 31, 2011, including debt and restricted cash ($22 million) associated with securitized vacation ownership notes receivables, was $2.041 billion.

At December 31, 2011, debt was approximately 80% fixed rate and 20% floating rate and its weighted average maturity was 4.1 years with a weighted average interest rate of 6.66% excluding the securitized debt. The Company had cash (including current restricted cash) and availability under the domestic and international revolving credit facility of approximately $2.177 billion.

During the fourth quarter of 2011, the Company sold approximately $210 million of vacation ownership notes receivable realizing cash proceeds of $200 million.

During the fourth quarter of 2011, the Company redeemed all $605 million of its 7.875% Senior Notes outstanding which were originally issued in April 2002 and due May 2012. Redemption premiums and other costs associated with the prepayment were approximately $16 million.

 

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Outlook

In Developed markets, the macroeconomic environment remains uncertain with high unemployment and high public/private debt. While there are increasing concerns about slower, “new” normal demand growth, the lodging supply situation is very favorable. In Emerging markets, macroeconomic growth has been strong, driving high secular growth in both lodging demand and supply. We remain of the view that several scenarios could play out. Our outlook below reflects our Baseline Scenario for the full year 2012:

 

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Excluding Bal Harbour, adjusted EBITDA is expected to be approximately $1.060 billion to $1.090 billion, assuming:

 

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REVPAR increases at Same-Store Company Operated Hotels Worldwide of 5% to 7% in constant dollars (approximately 200 basis points lower in dollars at current exchange rates).

 

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REVPAR increases at Branded Same-Store Owned Hotels Worldwide of 4% to 6% in constant dollars (approximately 200 basis points lower in dollars at current exchange rates).

 

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Margins at Branded Same-Store Owned Hotels Worldwide increase 100 to 150 basis points.

 

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Management fees, franchise fees and other income increase approximately 8% to 10%.

 

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Earnings from our vacation ownership and residential business of approximately $150 million to $155 million.

 

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Selling, general and administrative expenses increase 3% to 5%.

 

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Including Bal Harbour, which is expected to contribute at least $80 million of EBITDA, adjusted EBITDA is expected to be approximately $1.140 billion to $1.170 billion.

 

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Depreciation and amortization is expected to be approximately $300 million.

 

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Interest expense is expected to be approximately $212 million.

 

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Inclusive of Bal Harbour, full year effective tax rate is expected to be approximately 30%, and cash taxes are expected to be approximately $100 million.

 

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Inclusive of Bal Harbour, EPS is expected to be approximately $2.22 to $2.33.

 

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Full year capital expenditure (excluding vacation ownership and residential inventory) is expected to be approximately $200 million for maintenance, renovation and technology. In addition, in-flight investment projects and prior commitments for joint ventures and other investments are expected to total approximately $375 million.

 

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Vacation ownership (excluding Bal Harbour) is expected to generate approximately $125 million in positive cash flow. Bal Harbour is expected to generate at least $250 million in net cash flow.

For the three months ended March 31, 2012:

 

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Excluding Bal Harbour, adjusted EBITDA is expected to be approximately $205 million to $215 million, assuming:

 

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REVPAR increases at Same-Store Company Operated Hotels Worldwide of 5% to 7% in constant dollars (approximately 100 basis points lower in dollars at current exchange rates).

 

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REVPAR increases at Branded Same-Store Company Owned Hotels Worldwide of 4% to 6% in constant dollars (approximately 150 basis points lower in dollars at current exchange rates).

 

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Management fees, franchise fees and other income increase approximately 8% to 10%.

 

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Earnings from our vacation ownership and residential business are flat year over year.

 

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Including Bal Harbour, which is expected to contribute at least $60 million of EBITDA, adjusted EBITDA is expected to be approximately $265 million to $275 million.

 

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Depreciation and amortization is expected to be approximately $73 million.

 

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Interest expense is expected to be approximately $54 million.

 

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Including Bal Harbour, income from continuing operations is expected to be approximately $97 million to $104 million, reflecting an effective tax rate of approximately 30%.

 

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Including Bal Harbour, EPS is expected to be approximately $0.49 to $0.53.

 

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Special Items

The Company’s special items netted to a charge of $98 million ($18 million after-tax benefit) in the fourth quarter of 2011 compared to a benefit of $69 million ($107 million after-tax) in the same period of 2010.

The following represents a reconciliation of income from continuing operations before special items to income from continuing operations including special items (in millions, except per share data):

 

Three Months Ended December 31,										Year Ended December  31,
2011				2010						2011				2010
$	140			$	99			Income from continuing operations before special items		$	378			$	237
$	0.71			$	0.52			EPS before special items		$	1.93			$	1.25
								Special Items
	(68	)			73			Restructuring, goodwill impairment, and other special (charges) credits, net (a)			(68	)			75
	(14	)			(4	)		Gain (loss) on asset dispositions and impairments, net (b)			—				(39	)
	(16	)			—			Debt extinguishment (c)			(16	)			—
	(98	)			69			Total special items – pre-tax			(84	)			36
	38				(4	)		Income tax benefit (expense) for special items (d)			108				(5	)
	78				42			Income tax benefit – capital loss utilization and other non-recurring items (e)			100				42
	18				107			Total special items – after-tax			124				73
$	158			$	206			Income (loss) from continuing operations		$	502			$	310
$	0.80			$	1.08			EPS including special items		$	2.57			$	1.63

 

(a)	During the three months and year ended December 31, 2011, the Company recorded restructuring and other special charges of $68 million primarily related to an unfavorable legal decision.

During the three months ended December 31, 2010, the Company recorded restructuring and other special credits of $73 million primarily related to the favorable settlement of a lawsuit and the reversal of a reserve from a previous acquisition no longer deemed necessary. Additionally, the year ended December 31, 2010 includes $2 million of restructuring credits associated with the reversal of previous restructuring reserves no longer deemed necessary.

 

(b)

During the three months ended December 31, 2011, the net loss primarily relates to impairment charges of $7 million related to six hotels where their carrying value exceeded their estimated fair values and impairment charges of $9 million associated with fixed assets at two owned hotels undergoing a significant renovation, partially offset by insurance proceeds as a result of storm damage at another owned hotel. Additionally, the year ended December 31, 2011 includes the gain from an asset exchange transaction that was partially offset by the impairment of a minority investment in a joint venture hotel located in Japan.

During the three months ended December 31, 2010, the net loss primarily relates to the impairment of fixed assets at an owned hotel that is undergoing a significant renovation, offset by a gain on the sale of non-core assets. The year ended December 31, 2010 also includes a loss of $53 million from the sale of one owned hotel partially offset by a gain of $14 million from property insurance proceeds related to an owned hotel damaged by a tornado and a $5 million gain that resulted from the step acquisition of a controlling interest in a previously unconsolidated joint venture.

 

(c)	The three months and year ended December 31, 2011, include $16 million of charges associated with tender premiums and other costs related to the early extinguishment of approximately $605 million of the Company’s long-term debt. These charges were recorded in the interest expense line item.

 

(d)

During the three months and year ended December 31, 2011, the benefit relates primarily to a tax benefit on the special items at the statutory tax rate. The year ended December 31, 2011 also includes a tax benefit on the sale of two wholly-owned hotels with high tax bases as a result of a previous transaction.

During the three months and year ended December 31, 2010, the net expense primarily relates to a tax expense at the statutory rate for restructuring credits partially offset by a benefit related to a gain on the sale of a joint venture investment.

 

(e)

During the three months and year ended December 31, 2011, the benefit primarily relates to the use of capital losses which had previously been reserved and certain changes in valuation allowances associated with deferred tax assets. The year ended December 31, 2011 also includes a tax benefit of $35 million related to the IRS settlement in the third quarter of 2011.

During the three months and year ended December 31, 2010, a $42 million benefit primarily relates to a refund from the IRS of approximately $245 million primarily for previously paid taxes and related interest associated with the settlement of a dispute regarding the 1998 disposition of World Directories, Inc. An additional benefit of $134 million, associated with this settlement, was recorded in discontinued operations.

The Company has included the above supplemental information concerning special items to assist investors in analyzing Starwood’s financial position and results of operations. The Company has chosen to provide this information to investors to enable them to perform meaningful comparisons of past, present and future operating results and as a means to emphasize the results of core on-going operations.

 

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Starwood will be conducting a conference call to discuss the fourth quarter financial results at 10:30 a.m. (EST) today at (706) 758-8744 with conference ID 39788575. The conference call will be available through a simultaneous web cast in the News & Events / Earnings Conference Calls section of the Company’s website at http://www.starwoodhotels.com/corporate/investor_relations.html. A replay of the conference call will also be available from 1:30 p.m. (EST) today through Thursday, February 9, 2012 at 12:00 midnight (EST) on both the corporate website and via telephone replay at (855) 589-2056 with conference ID 39788575.

Definitions

All references to EPS, unless otherwise noted, reflect earnings per diluted share from continuing operations attributable to Starwood’s common shareholders. All references to continuing operations, discontinued operations and net income reflect amounts attributable to Starwood’s common shareholders (i.e. excluding amounts attributable to noncontrolling interests). All references to “net capital expenditures” mean gross capital expenditures for timeshare and fractional inventory net of cost of sales. EBITDA represents net income before interest expense, taxes, depreciation and amortization. The Company believes that EBITDA is a useful measure of the Company’s operating performance due to the significance of the Company’s long-lived assets and level of indebtedness. EBITDA is a commonly used measure of performance in its industry which, when considered with GAAP measures, the Company believes gives a more complete understanding of the Company’s operating performance. It also facilitates comparisons between the Company and its competitors. The Company’s management has historically adjusted EBITDA (i.e., “Adjusted EBITDA”) when evaluating operating performance for the total Company, as well as for individual properties or groups of properties, because the Company believes that the inclusion or exclusion of certain recurring and non-recurring items, such as restructuring, goodwill impairment and other special charges and gains and losses on asset dispositions and impairments, is necessary to provide the most accurate measure of core operating results and as a means to evaluate comparative results. The Company’s management also uses Adjusted EBITDA as a measure in determining the value of acquisitions and dispositions and it is used in the annual budget process. The Company has historically reported this measure to its investors and believes that the continued inclusion of Adjusted EBITDA provides consistency in its financial reporting and enables investors to perform more meaningful comparisons of past, present and future operating results and provides a means to evaluate the results of its core on-going operations. EBITDA and Adjusted EBITDA are not intended to represent cash flow from operations as defined by GAAP and such metrics should not be considered as an alternative to net income, cash flow from operations or any other performance measure prescribed by GAAP. The Company’s calculation of EBITDA and Adjusted EBITDA may be different from the calculations used by other companies and, therefore, comparability may be limited.

All references to Same-Store Owned Hotels reflect the Company’s owned, leased and consolidated joint venture hotels, excluding condo hotels, hotels sold to date and hotels undergoing significant repositionings or for which comparable results are not available (i.e., hotels not owned during the entire periods presented or closed due to seasonality or natural disasters). References to Company Operated Hotel metrics (e.g. REVPAR) reflect metrics for the Company’s owned and managed hotels. References to System-Wide metrics (e.g. REVPAR) reflect metrics for the Company’s owned, managed and franchised hotels. REVPAR is defined as revenue per available room. ADR is defined as average daily rate.

 

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All references to revenues in constant dollars represent revenues, excluding the impact of the movement of foreign exchange rates. The Company calculates revenues in constant dollars by calculating revenues for the current year using the prior year’s exchange rates. The Company uses this revenue measure to better understand the underlying results and trends of the business, excluding the impact of movements in foreign exchange rates.

All references to contract sales or originated sales reflect vacation ownership sales before revenue adjustments for percentage of completion accounting methodology. All references to earnings from vacation ownership and residential represents operating income before depreciation expense.

All references to management and franchise revenues represent base and incentive fees, franchise fees, amortization of deferred gains resulting from the sales of hotels subject to long-term management contracts and termination fees.

Starwood Hotels & Resorts Worldwide, Inc. is one of the leading hotel and leisure companies in the world with 1,090 properties in nearly 100 countries and 154,000 employees at its owned and managed properties. Starwood Hotels is a fully integrated owner, operator and franchisor of hotels and resorts with the following internationally renowned brands: St. Regis^®, The Luxury Collection^®, W^®, Westin^®, Le Méridien^®, Sheraton^®, Four Points^® by Sheraton, Aloft^®, and Element(SM). The company boasts one of the industry’s leading loyalty programs, Starwood Preferred Guest (SPG), allowing members to earn and redeem points for room stays, room upgrades and flights, with no blackout dates. Starwood Hotels also owns Starwood Vacation Ownership, Inc., one of the premier developers and operators of high quality vacation interval ownership resorts. For more information, including reconciliations of non-GAAP financial measures to GAAP financial measures, please visit www.starwoodhotels.com or contact Investor Relations at (203) 351-3500.

** Please contact Starwood’s toll-free media hotline at (866) 4-STAR-PR

(866-478-2777) for photography or additional information.**

Note: This press release contains forward-looking statements within the meaning of federal securities regulations. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties and other factors that may cause actual results to differ materially from those anticipated at the time the forward-looking statements are made. Further results, performance and achievements may be affected by general economic conditions including the impact of war and terrorist activity, natural disasters, business and financing conditions (including the condition of credit markets in the U.S. and internationally), foreign exchange fluctuations, cyclicality of the real estate (including residential) and the hotel and vacation ownership businesses, operating risks associated with the hotel, vacation ownership and residential businesses, relationships with associates and labor unions, customers and property owners, the impact of the internet reservation channels, our reliance on technology, domestic and international political and geopolitical conditions, competition, governmental and regulatory actions (including the impact of changes in U.S. and foreign tax laws and their interpretation), travelers’ fears of exposure to contagious diseases, risk associated with the level of our indebtedness, risk associated with potential acquisitions and dispositions and the introduction of new brand concepts and other risks and uncertainties. These risks and uncertainties are presented in detail in our filings with the Securities and Exchange Commission. Future vacation ownership units indicated in this press release include planned units on land owned by the Company or by joint ventures in which the Company has an interest that have received all major governmental land use approvals for the development of vacation ownership resorts. There can also be no assurance that such units will in fact be developed and, if developed, the time period of such development (which may be more than several years in the future). Some of the projects may require additional third-party approvals or permits for development and build out and may also be subject to legal challenges as well as a commitment of capital by the Company. The actual number of units to be constructed may be significantly lower than the number of future units indicated. There can also be no assurance that agreements will be entered into for the hotels in the Company’s pipeline and, if entered into, the timing of any agreement and the opening of the related hotel. Although we believe the expectations reflected in forward-looking statements are based upon reasonable assumptions, we can give no assurance that our expectations will be attained or that results will not materially differ. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

 

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STARWOOD HOTELS & RESORTS WORLDWIDE, INC.

UNAUDITED CONSOLIDATED STATEMENTS OF INCOME

(In millions, except per share data)

 

Three Months Ended December 31,														Year Ended December 31,
2011				2010				% Variance						2011				2010				% Variance
												Revenues
$	439			$	459				(4.4	)		Owned, leased and consolidated joint venture hotels		$	1,768			$	1,704				3.8
	264				136				94.1			Vacation ownership and residential sales and services			703				538				30.7
	234				209				12.0			Management fees, franchise fees and other income			814				712				14.3
	594				536				10.8			Other revenues from managed and franchised properties (a)			2,339				2,117				10.5
	1,531				1,340				14.3						5,624				5,071				10.9
												Costs and Expenses
	346				367				5.7			Owned, leased and consolidated joint venture hotels			1,449				1,395				(3.9	)
	191				103				(85.4	)		Vacation ownership and residential			521				405				(28.6	)
	96				86				(11.6	)		Selling, general, administrative and other			352				344				(2.3	)
	68				(73	)			n/m			Restructuring, goodwill impairment and other special charges (credits), net			68				(75	)			n/m
	58				56				(3.6	)		Depreciation			235				252				6.7
	7				9				22.2			Amortization			30				33				9.1
	594				536				(10.8	)		Other expenses from managed and franchised properties (a)			2,339				2,117				(10.5	)
	1,360				1,084				(25.5	)					4,994				4,471				(11.7	)
	171				256				(33.2	)		Operating income			630				600				5.0
	5				5				—			Equity (losses) earnings and gains and (losses) from unconsolidated ventures, net			11				10				10.0
	(65)				(56	)			(16.1	)		Interest expense, net of interest income of $1, $1, $3 and $2			(216	)			(236	)			8.5
	(14)				(4	)			n/m			Gain (loss) on asset dispositions and impairments, net			—				(39	)			100.0
	97				201				(51.7	)		Income from continuing operations before taxes and noncontrolling interests			425				335				26.9
	61				5				n/m			Income tax benefit (expense)			75				(27	)			n/m
	158				206				(23.3	)		Income (loss) from continuing operations			500				308				62.3
												Discontinued Operations:
	—				1				(100.0	)		Income (loss) from operations, net of tax			—				(1	)			100.0
	9				132				(93.2	)		Gain (loss) on dispositions, net of tax			(13	)			168				n/m
	167				339				(50.7	)		Net income (loss)			487				475				2.5
	—				—				—			Net loss (income) attributable to noncontrolling interests			2				2				—
$	167			$	339				(50.7	)		Net income (loss) attributable to Starwood		$	489			$	477				2.5
												Earnings (Losses) Per Share – Basic
$	0.82			$	1.13				(27.4	)		Continuing operations		$	2.65			$	1.70				55.9
	0.05				0.72				(93.1	)		Discontinued operations			(0.07	)			0.91				n/m
$	0.87			$	1.85				(53.0	)		Net income (loss)		$	2.58			$	2.61				(1.1	)
												Earnings (Losses) Per Share – Diluted
$	0.80			$	1.08				(25.9	)		Continuing operations		$	2.57			$	1.63				57.7
	0.05				0.70				(92.9	)		Discontinued operations			(0.06	)			0.88				n/m
$	0.85			$	1.78				(52.2	)		Net income (loss)		$	2.51			$	2.51				—
												Amounts attributable to Starwood’s Common Shareholders
$	158			$	206				(23.3	)		Continuing operations		$	502			$	310				61.9
	9				133				(93.2	)		Discontinued operations			(13	)			167				n/m
$	167			$	339				(50.7	)		Net income (loss)		$	489			$	477				2.5
	190				185							Weighted average number of shares			189				183
	196				192							Weighted average number of shares assuming dilution			195				190

 

(a)

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.

n/m = not meaningful

 

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STARWOOD HOTELS & RESORTS WORLDWIDE, INC.

CONSOLIDATED BALANCE SHEETS

(In millions, except share data)

 

		December 31, 2011				December 31, 2010
		(unaudited)
Assets
Current assets:
Cash and cash equivalents		$	454			$	753
Restricted cash			232				53
Accounts receivable, net of allowance for doubtful accounts of $46 and $45			569				513
Inventories			812				802
Securitized vacation ownership notes receivable, net of allowance for doubtful accounts of $10 and $10			64				59
Prepaid expenses and other			125				126
Total current assets			2,256				2,306
Investments			259				312
Plant, property and equipment, net			3,270				3,323
Goodwill and intangible assets, net			2,057				2,067
Deferred tax assets			921				979
Other assets (a)			355				381
Securitized vacation ownership notes receivable			446				408
		$	9,564			$	9,776
Liabilities and Stockholders’ Equity
Current liabilities:
Short-term borrowings and current maturities of long-term debt (b)		$	3			$	9
Accounts payable			144				138
Current maturities of long-term securitized vacation ownership debt			130				127
Accrued expenses			1,177				1,104
Accrued salaries, wages and benefits			375				410
Accrued taxes and other			166				373
Total current liabilities			1,995				2,161
Long-term debt (b)			2,194				2,848
Long-term securitized vacation ownership debt			402				367
Deferred income taxes			47				28
Other liabilities			1,971				1,886
			6,609				7,290
Commitments and contingencies
Stockholders’ equity:
Common stock; $0.01 par value; authorized 1,000,000,000 shares; outstanding 195,913,400 and 192,970,437 shares at December 31, 2011 and December 31, 2010, respectively			2				2
Additional paid-in capital			963				805
Accumulated other comprehensive loss			(348	)			(283	)
Retained earnings			2,337				1,947
Total Starwood stockholders’ equity			2,954				2,471
Noncontrolling interest			1				15
Total equity			2,955				2,486
		$	9,564			$	9,776

 

(a)	Includes restricted cash of $2 million and $10 million at December 31, 2011 and December 31, 2010, respectively.

(b)	Excludes Starwood’s share of unconsolidated joint venture debt aggregating approximately $432 million and $434 million at December 31, 2011 and December 31, 2010, respectively.

 

-13-

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STARWOOD HOTELS & RESORTS WORLDWIDE, INC.

Non-GAAP to GAAP Reconciliations – Historical Data

(In millions)

 

Three Months Ended December 31,														Year Ended December 31,
2011				2010				% Variance						2011				2010				% Variance
												Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA
	$167			$	339				(50.7	)		Net income (loss)		$	489			$	477				2.5
	69				61				13.1			Interest expense (a)			239				255				(6.3	)
	(70)				(138	)			49.3			Income tax (benefit) expense (b)			(81	)			(139	)			41.7
	65				66				(1.5	)		Depreciation (c)			265				288				(8.0	)
	8				10				(20.0	)		Amortization (d)			34				36				(5.6	)
	239				338				(29.3	)		EBITDA			946				917				3.2
	14				4				n/m			(Gain) loss on asset dispositions and impairments, net			—				39				(100.0	)
	—				—				—			Discontinued operations (gain) loss on dispositions			18				(2	)			n/m
	68				(73	)			n/m			Restructuring, goodwill impairment and other special charges (credits), net			68				(75	)			n/m
	$321			$	269				19.3			Adjusted EBITDA		$	1,032			$	879				17.4

 

(a)	Includes $3 million and $4 million of Starwood’s share of interest expense of unconsolidated joint ventures for the three months ended December 31, 2011 and 2010, respectively, and $20 million and $17 million for the year ended December 31, 2011 and 2010, respectively.

(b)

Includes $(9) million and $(132) million of tax expense (benefit) recorded in discontinued operations net gain (loss) on dispositions for the three months ended December 31, 2011 and 2010, respectively, and $(5) million and $(166) million for the year ended December 31, 2011 and 2010, respectively. Also includes $0 million and $(1) million of tax (benefit) expense recorded in discontinued operations for the three months ended December 31, 2011 and 2010, respectively, and $0 million for the year ended December 31, 2011 and 2010.

(c)	Includes $7 million and $10 million of Starwood’s share of depreciation expense of unconsolidated joint ventures for the three months ended December 31, 2011 and 2010, respectively, and $30 million and $36 million for the year ended December 31, 2011 and 2010, respectively.

(d)	Includes $1 million of Starwood’s share of amortization expense of unconsolidated joint ventures for the three months ended December 31, 2011 and 2010, and $4 million and $3 million for the year ended December 31, 2011 and 2010, respectively.

Non-GAAP to GAAP Reconciliations – Branded Same-Store Owned Hotels Worldwide

(In millions)

 

		Three Months  Ended December 31, 2011
		$ Change				% Variance
Revenue
Revenue increase (GAAP)		$	16				4.5	%
Impact of changes in foreign exchange rates			(3	)			(0.7	)%
Revenue increase in constant dollars		$	13				3.8	%
Expense
Expense increase (GAAP)		$	4				1.5	%
Impact of changes in foreign exchange rates			(2	)			(0.8	)%
Expense increase in constant dollars		$	2				0.7	%

Non-GAAP to GAAP Reconciliation – Earnings from Vacation Ownership and Residential Business

(In millions)

 

		Three Months Ended December 31,												Year Ended December 31,
		2011				2010				$ Variance				2011				2010				$ Variance
Earnings from vacation ownership and residential		$	73			$	33			$	40			$	182			$	133			$	49
Depreciation expense			(5	)			(7	)			2				(22	)			(28	)			6
Operating income from vacation ownership and residential		$	68			$	26			$	42			$	160			$	105			$	55

 

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STARWOOD HOTELS & RESORTS WORLDWIDE, INC.

Non-GAAP to GAAP Reconciliations – Future Performance

(In millions, except per share data)

Low Case

 

Three Months Ended March 31, 2012						Year Ended December 31, 2012
$	97			Net income		$	440
	54			Interest expense			212
	41			Income tax expense			188
	73			Depreciation and amortization			300
	265			EBITDA			1,140
	—			(Gain) loss on asset dispositions and impairments, net			—
	—			Discontinued operations (gain) loss on dispositions			—
$	265			Adjusted EBITDA		$	1,140
Three Months Ended March 31, 2012						Year Ended December 31, 2012
$	97			Income from continuing operations before special items		$	440
$	0.49			EPS before special items		$	2.22
				Special Items
	—			Gain (loss) on asset dispositions and impairments, net			—
	—			Total special items – pre-tax			—
	—			Income tax benefit associated with special items			—
	—			Total special items – after-tax			—
$	97			Income from continuing operations		$	440
$	0.49			EPS including special items		$	2.22
				High Case
Three Months Ended March 31, 2012						Year Ended December 31, 2012
$	104			Net income		$	461
	54			Interest expense			212
	44			Income tax expense			197
	73			Depreciation and amortization			300
	275			EBITDA			1,170
	—			(Gain) loss on asset dispositions and impairments, net			—
	—			Discontinued operations (gain) loss on dispositions			—
$	275			Adjusted EBITDA		$	1,170
Three Months Ended March 31, 2012						Year Ended December 31, 2012
$	104			Income from continuing operations before special items		$	461
$	0.53			EPS before special items		$	2.33
				Special Items
	—			Gain (loss) on asset dispositions and impairments, net			—
	—			Total special items – pre-tax			—
	—			Income tax benefit associated with special items			—
	—			Total special items – after-tax			—
$	104			Income from continuing operations		$	461
$	0.53			EPS including special items		$	2.33

 

-15-

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STARWOOD HOTELS & RESORTS WORLDWIDE, INC.

Non-GAAP to GAAP Reconciliations –

Future Earnings from Vacation Ownership and Residential Business

(In millions)

Low Case

 

		Three Months Ended March 31,
		2012				2011				$ Variance
Earnings from vacation ownership and residential		$	42			$	42			$	—
Depreciation expense			(5	)			(7	)			2
Operating income from vacation ownership and residential		$	37			$	35			$	2

 

		Year Ended December 31, 2012
Earnings from vacation ownership and residential		$	150
Depreciation expense			(20	)
Operating income from vacation ownership and residential		$	130

High Case

 

		Three Months Ended March 31,
		2012				2011				$ Variance
Earnings from vacation ownership and residential		$	42			$	42			$	—
Depreciation expense			(5	)			(7	)			2
Operating income from vacation ownership and residential		$	37			$	35			$	2

 

		Year Ended December 31, 2012
Earnings from vacation ownership and residential		$	155
Depreciation expense			(20	)
Operating income from vacation ownership and residential		$	135

 

-16-

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STARWOOD HOTELS & RESORTS WORLDWIDE, INC.

Non-GAAP to GAAP Reconciliations – Same Store Owned Hotel Revenue and Expenses

(In millions)

 

Three Months Ended December 31,														Year Ended December 31,
2011				2010				% Variance				Same-Store Owned Hotels Worldwide		2011				2010				% Variance
												Revenue
	$385			$	369				4.3			Same-Store Owned Hotels (a)		$	1,441			$	1,318				9.3
	—				37				(100.0	)		Hotels Sold or Closed in 2011 and 2010			56				158				(64.6	)
	46				47				(2.1	)		Hotels Without Comparable Results			242				214				13.1
	8				6				33.3			Other ancillary hotel operations			29				14				n/m
	$439			$	459				(4.4	)		Total Owned, Leased and Consolidated Joint Venture Hotels Revenue		$	1,768			$	1,704				3.8
												Costs and Expenses
	$294			$	290				(1.4	)		Same-Store Owned Hotels (a)		$	1,130			$	1,057				(6.9	)
	—				28				100.0			Hotels Sold or Closed in 2011 and 2010			51				129				60.5
	46				44				(4.5	)		Hotels Without Comparable Results			242				197				(22.8	)
	6				5				(20.0	)		Other ancillary hotel operations			26				12				n/m
	$346			$	367				5.7			Total Owned, Leased and Consolidated Joint Venture Hotels Costs and Expenses		$	1,449			$	1,395				(3.9	)
Three Months Ended December 31,														Year Ended December 31,
2011				2010				% Variance				Same-Store Owned Hotels North America		2011				2010				% Variance
												Revenue
	$220			$	211				4.3			Same-Store Owned Hotels (a)		$	819			$	774				5.8
	—				32				(100.0	)		Hotels Sold or Closed in 2011 and 2010			42				142				(70.4	)
	30				34				(11.8	)		Hotels Without Comparable Results			139				151				(7.9	)
	1				—				n/m			Other ancillary hotel operations			1				—				n/m
	$251			$	277				(9.4	)		Total Owned, Leased and Consolidated Joint Venture Hotels Revenue		$	1,001			$	1,067				(6.2	)
												Costs and Expenses
	$170			$	169				(0.6	)		Same-Store Owned Hotels (a)		$	664			$	642				(3.4	)
	—				23				100.0			Hotels Sold or Closed in 2011 and 2010			38				113				66.4
	30				32				6.3			Hotels Without Comparable Results			139				134				(3.7	)
	—				—				—			Other ancillary hotel operations			—				—				—
	$200			$	224				10.7			Total Owned, Leased and Consolidated Joint Venture Hotels Costs and Expenses		$	841			$	889				5.4
Three Months Ended December 31,														Year Ended December 31,
2011				2010				% Variance				Same-Store Owned Hotels International		2011				2010				% Variance
												Revenue
	$165			$	158				4.4			Same-Store Owned Hotels (a)		$	622			$	544				14.3
	—				5				(100.0	)		Hotels Sold or Closed in 2011 and 2010			14				16				(12.5	)
	16				13				23.1			Hotels Without Comparable Results			103				63				63.5
	7				6				16.7			Other ancillary hotel operations			28				14				100.0
	$188			$	182			$	3.3			Total Owned, Leased and Consolidated Joint Venture Hotels Revenue		$	767			$	637				20.4
												Costs and Expenses
	$124			$	121				(2.5	)		Same-Store Owned Hotels (a)		$	466			$	415				(12.3	)
	—				5				100.0			Hotels Sold or Closed in 2011 and 2010			13				16				18.8
	16				12				(33.3	)		Hotels Without Comparable Results			103				63				(63.5	)
	6				5				(20.0	)		Other ancillary hotel operations			26				12				n/m
	$146			$	143			$	(2.1	)		Total Owned, Leased and Consolidated Joint Venture Hotels Costs and Expenses		$	608			$	506				(20.2	)

 

(a)	Same-Store Owned Hotel Results exclude four hotels sold and 12 hotels without comparable results for the three months ended and six hotels sold and 14 hotels without comparable results for the year ended.

n/m = not meaningful

 

-17-

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Starwood Hotels & Resorts Worldwide, Inc.

Systemwide⁽¹⁾ Statistics - Same Store

For the Three Months Ended December 31,

UNAUDITED

 

		Systemwide - Worldwide												Systemwide - North America												Systemwide - International
		2011				2010				Variance				2011				2010				Variance				2011				2010				Variance
TOTAL HOTELS
REVPAR ($)			113.14				106.83				5.9	%			107.23				99.59				7.7	%			121.72				117.38				3.7	%
ADR ($)			170.81				164.93				3.6	%			160.70				154.64				3.9	%			185.76				179.72				3.4	%
Occupancy (%)			66.2	%			64.8	%			1.4				66.7	%			64.4	%			2.3				65.5	%			65.3	%			0.2
SHERATON
REVPAR ($)			95.82				91.84				4.3	%			89.06				83.98				6.0	%			105.12				102.65				2.4	%
ADR ($)			147.94				143.23				3.3	%			137.21				133.12				3.1	%			162.79				156.62				3.9	%
Occupancy (%)			64.8	%			64.1	%			0.7				64.9	%			63.1	%			1.8				64.6	%			65.5	%			(0.9	)
WESTIN
REVPAR ($)			124.62				115.18				8.2	%			116.85				108.07				8.1	%			146.73				135.31				8.4	%
ADR ($)			182.54				175.05				4.3	%			171.39				163.63				4.7	%			214.08				207.94				3.0	%
Occupancy (%)			68.3	%			65.8	%			2.5				68.2	%			66.0	%			2.2				68.5	%			65.1	%			3.4
ST. REGIS/LUXURY COLLECTION
REVPAR ($)			185.46				174.64				6.2	%			220.45				192.65				14.4	%			166.64				164.45				1.3	%
ADR ($)			298.35				287.38				3.8	%			323.06				303.44				6.5	%			282.94				277.64				1.9	%
Occupancy (%)			62.2	%			60.8	%			1.4				68.2	%			63.5	%			4.7				58.9	%			59.2	%			(0.3	)
LE MERIDIEN
REVPAR ($)			132.20				130.62				1.2	%			204.94				191.04				7.3	%			122.95				122.93				0.0	%
ADR ($)			191.52				190.74				0.4	%			250.39				242.81				3.1	%			182.42				182.98				(0.3	%)
Occupancy (%)			69.0	%			68.5	%			0.5				81.8	%			78.7	%			3.1				67.4	%			67.2	%			0.2
W
REVPAR ($)			212.60				197.13				7.8	%			202.65				190.68				6.3	%			247.85				220.04				12.6	%
ADR ($)			283.82				271.02				4.7	%			271.21				263.06				3.1	%			327.99				298.81				9.8	%
Occupancy (%)			74.9	%			72.7	%			2.2				74.7	%			72.5	%			2.2				75.6	%			73.6	%			2.0
FOUR POINTS
REVPAR ($)			75.72				70.06				8.1	%			69.86				63.12				10.7	%			86.54				82.81				4.5	%
ADR ($)			115.53				110.88				4.2	%			107.70				103.19				4.4	%			129.61				123.81				4.7	%
Occupancy (%)			65.5	%			63.2	%			2.3				64.9	%			61.2	%			3.7				66.8	%			66.9	%			(0.1	)
ALOFT
REVPAR ($)			65.02				57.80				12.5	%			66.37				60.51				9.7	%
ADR ($)			100.51				98.87				1.7	%			103.03				100.20				2.8	%
Occupancy (%)			64.7	%			58.5	%			6.2				64.4	%			60.4	%			4.0

 

(1)	Includes same store owned, leased, managed, and franchised hotels

 

-18-

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Starwood Hotels & Resorts Worldwide, Inc.

Worldwide Hotel Results - Same Store

For the Three Months Ended December 31,

UNAUDITED

 

		Systemwide (1)												Company Operated (2)
		2011				2010				Variance				2011				2010				Variance
TOTAL WORLDWIDE
REVPAR ($)			113.14				106.83				5.9	%			131.87				124.54				5.9	%
ADR ($)			170.81				164.93				3.6	%			194.54				186.53				4.3	%
Occupancy (%)			66.2	%			64.8	%			1.4				67.8	%			66.8	%			1.0
NORTH AMERICA
REVPAR ($)			107.23				99.59				7.7	%			137.74				128.24				7.4	%
ADR ($)			160.70				154.64				3.9	%			197.61				189.37				4.4	%
Occupancy (%)			66.7	%			64.4	%			2.3				69.7	%			67.7	%			2.0
EUROPE
REVPAR ($)			131.77				131.47				0.2	%			145.31				145.53				(0.2	%)
ADR ($)			210.28				210.18				0.0	%			226.59				224.35				1.0	%
Occupancy (%)			62.7	%			62.5	%			0.2				64.1	%			64.9	%			(0.8	)
AFRICA & MIDDLE EAST
REVPAR ($)			139.47				140.85				(1.0	%)			140.58				142.25				(1.2	%)
ADR ($)			207.16				189.41				9.4	%			209.04				190.95				9.5	%
Occupancy (%)			67.3	%			74.4	%			(7.1	)			67.2	%			74.5	%			(7.3	)
ASIA PACIFIC
REVPAR ($)			115.78				108.62				6.6	%			115.92				106.01				9.3	%
ADR ($)			171.27				167.03				2.5	%			172.15				165.07				4.3	%
Occupancy (%)			67.6	%			65.0	%			2.6				67.3	%			64.2	%			3.1
LATIN AMERICA
REVPAR ($)			99.07				90.41				9.6	%			108.82				97.26				11.9	%
ADR ($)			163.03				149.24				9.2	%			170.99				160.01				6.9	%
Occupancy (%)			60.8	%			60.6	%			0.2				63.6	%			60.8	%			2.8

 

(1)	Includes same store owned, leased, managed, and franchised hotels

(2)	Includes same store owned, leased, and managed hotels

 

-19-

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Starwood Hotels & Resorts Worldwide, Inc.

Owned Hotel Results - Same Store ⁽¹⁾

For the Three Months Ended December 31,

UNAUDITED

 

		WORLDWIDE												NORTH AMERICA												INTERNATIONAL
		2011				2010				Variance				2011				2010				Variance				2011				2010				Variance
TOTAL HOTELS		47 Hotels												23 Hotels												24 Hotels
REVPAR ($)			160.41				151.85				5.6	%			169.24				160.59				5.4	%			149.34				140.92				6.0	%
ADR ($)			223.98				217.98				2.8	%			227.66				220.95				3.0	%			218.96				213.88				2.4	%
Occupancy (%)			71.6	%			69.7	%			1.9				74.3	%			72.7	%			1.6				68.2	%			65.9	%			2.3
Total Revenue			385,249				368,650				4.5	%			220,145				211,016				4.3	%			165,104				157,634				4.7	%
Total Expenses			293,969				289,504				(1.5	%)			170,040				168,329				(1.0	%)			123,929				121,175				(2.3	%)
BRANDED HOTELS		42 Hotels												18 Hotels												24 Hotels
REVPAR ($)			161.95				153.20				5.7	%			173.86				164.81				5.5	%			149.34				140.92				6.0	%
ADR ($)			224.42				217.09				3.4	%			229.07				219.76				4.2	%			218.96				213.88				2.4	%
Occupancy (%)			72.2	%			70.6	%			1.6				75.9	%			75.0	%			0.9				68.2	%			65.9	%			2.3
Total Revenue			360,841				345,160				4.5	%			195,737				187,526				4.4	%			165,104				157,634				4.7	%
Total Expenses			274,829				270,834				(1.5	%)			150,900				149,659				(0.8	%)			123,929				121,175				(2.3	%)

 

(1)	Hotel Results exclude 4 hotels sold and 12 hotels without comparable results during 2011 & 2010

*	Revenues & Expenses above are represented in ‘000’s

 

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STARWOOD HOTELS & RESORTS WORLDWIDE, INC.

Management Fees, Franchise Fees and Other Income

For the Three Months Ended December 31,

UNAUDITED ($ millions)

 

		Worldwide
		2011				2010				$ Variance				% Variance
Management Fees:
Base Fees			82				74				8				10.8	%
Incentive Fees			51				54				(3	)			(5.6	%)
Total Management Fees			133				128				5				3.9	%
Franchise Fees			47				42				5				11.9	%
Total Management & Franchise Fees			180				170				10				5.9	%
Other Management & Franchise Revenues (1)			34				29				5				17.2	%
Total Management & Franchise Revenues			214				199				15				7.5	%
Other			20				10				10				100.0	%
Management Fees, Franchise Fees & Other Income			234				209				25				12.0	%

 

(1)	Other Management & Franchise Revenues includes the amortization of deferred gains of approximately $23 and $21 in 2011 and 2010, respectively, resulting from the sales of hotels subject to long-term management contracts and termination fees.

 

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STARWOOD HOTELS & RESORTS WORLDWIDE, INC.

Vacation Ownership & Residential Revenues and Expenses

For the Three Months Ended December 31,

UNAUDITED ($ millions)

 

		2011				2010				$ Variance				% Variance
Originated Sales Revenues (1) – Vacation Ownership Sales			86				81				5				6.2	%
Other Sales and Services Revenues (2)			59				64				(5	)			(7.8	%)
Deferred Revenues – Percentage of Completion			—				—				—				—
Deferred Revenues – Other (3)			(8	)			(10	)			2				20.0	%
Vacation Ownership Sales and Services Revenues			137				135				2				1.5	%
Residential Sales and Services Revenues (6)			127				1				126				n/m
Total Vacation Ownership & Residential Sales and Services Revenues			264				136				128				94.1	%
Originated Sales Expenses (4) – Vacation Ownership Sales			56				48				(8	)			(16.7	%)
Other Expenses (5)			46				49				3				6.1	%
Deferred Expenses – Percentage of Completion			—				—				—				—
Deferred Expenses – Other			—				2				2				100.0	%
Vacation Ownership Expenses			102				99				(3	)			(3.0	%)
Residential Expenses (6)			89				4				(85	)			n/m
Total Vacation Ownership & Residential Expenses			191				103				(88	)			(85.4	%)

 

(1)	Timeshare sales revenue originated at each sales location before deferrals of revenue for U.S. GAAP reporting purposes

(2)	Includes resort income, interest income, gain on sale of notes receivable, and miscellaneous other revenues

(3)	Includes deferral of revenue for contracts still in rescission period, contracts that do not yet meet the requirements of ASC 978-605-25 and provision for loan loss

(4)	Timeshare cost of sales and sales & marketing expenses before deferrals of sales expenses for U.S. GAAP reporting purposes

(5)	Includes resort, general and administrative, and other miscellaneous expenses

(6)	For 2011, includes $122 million of revenues and $89 million expenses associated with the St. Regis Bal Harbour residential project

Note: Deferred revenue is calculated based on the Percentage of Completion (“POC”) of the project. Deferred expenses, also based on POC, include product costs and direct sales and marketing costs only. Indirect sales and marketing costs are not deferred per ASC 978-720-25 and ASC 978-340-25.

n/m = not meaningful

 

-22-

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STARWOOD HOTELS & RESORTS WORLDWIDE, INC.

Top 20 Worldwide Markets - Owned

For the Year Ended December 31, 2011

UNAUDITED

 

US Markets		% of 2011 Total Earnings 1						International Markets		% of 2011 Total Earnings 1
New York, NY			10	%				Canada			14	%
Phoenix, AZ			6	%				Australia			11	%
Chicago, IL			5	%				Italy			8	%
Hawaii			5	%				Argentina			6	%
Los Angeles, CA			3	%				Mexico			6	%
Atlanta, GA			2	%				United Kingdom			5	%
New Orleans, LA			2	%				Spain			4	%
San Francisco, CA			1	%				Fiji			4	%
Philadelphia, PA			1	%				Brazil			4	%
Boston, MA			1	%				France			2	%
Total Top 10 US Markets			36	%				Total Top 10 International Markets			64	%

 

1	Represents earnings before depreciation for owned, leased and consolidated joint venture hotels

 

-23-

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STARWOOD HOTELS & RESORTS WORLDWIDE, INC.

Total Management & Franchise Fees by Geographic Region

For the Year Ended December 31, 2011

UNAUDITED

 

Geographical Region		Management Fees				Franchise Fees				Total Management and Franchise Fees
United States			34	%			67	%			43	%
Europe			16	%			10	%			14	%
Asia Pacific			28	%			9	%			23	%
Middle East and Africa			14	%			1	%			10	%
Americas (Latin America & Canada)			8	%			13	%			10	%
Total			100	%			100	%			100	%

 

-24-

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Starwood Hotels & Resorts Worldwide, Inc.

Systemwide⁽¹⁾ Statistics - Same Store

For the Year Ended December 31,

UNAUDITED

 

		Systemwide - Worldwide												Systemwide - North America												Systemwide - International
		2011				2010				Variance				2011				2010				Variance				2011				2010				Variance
TOTAL HOTELS
REVPAR ($)			114.56				104.43				9.7	%			108.57				99.47				9.1	%			123.40				111.74				10.4	%
ADR ($)			168.37				158.57				6.2	%			155.11				148.45				4.5	%			189.36				174.17				8.7	%
Occupancy (%)			68.0	%			65.9	%			2.1				70.0	%			67.0	%			3.0				65.2	%			64.2	%			1.0
SHERATON
REVPAR ($)			95.89				88.84				7.9	%			90.79				84.22				7.8	%			102.91				95.22				8.1	%
ADR ($)			144.74				136.90				5.7	%			133.09				128.04				3.9	%			161.98				149.52				8.3	%
Occupancy (%)			66.3	%			64.9	%			1.4				68.2	%			65.8	%			2.4				63.5	%			63.7	%			(0.2	)
WESTIN
REVPAR ($)			127.83				116.03				10.2	%			121.29				111.04				9.2	%			148.15				131.49				12.7	%
ADR ($)			179.91				169.93				5.9	%			168.81				161.37				4.6	%			216.04				197.32				9.5	%
Occupancy (%)			71.1	%			68.3	%			2.8				71.8	%			68.8	%			3.0				68.6	%			66.6	%			2.0
ST. REGIS/LUXURY COLLECTION
REVPAR ($)			200.96				177.77				13.0	%			211.02				184.42				14.4	%			195.60				174.17				12.3	%
ADR ($)			310.22				284.94				8.9	%			297.10				278.50				6.7	%			318.29				288.77				10.2	%
Occupancy (%)			64.8	%			62.4	%			2.4				71.0	%			66.2	%			4.8				61.5	%			60.3	%			1.2
LE MERIDIEN
REVPAR ($)			131.92				121.17				8.9	%			198.02				179.38				10.4	%			124.29				114.40				8.6	%
ADR ($)			192.36				183.01				5.1	%			239.36				225.81				6.0	%			185.66				176.89				5.0	%
Occupancy (%)			68.6	%			66.2	%			2.4				82.7	%			79.4	%			3.3				66.9	%			64.7	%			2.2
W
REVPAR ($)			202.78				179.12				13.2	%			192.42				174.65				10.2	%			238.79				194.71				22.6	%
ADR ($)			266.18				248.04				7.3	%			251.11				238.61				5.2	%			319.97				282.98				13.1	%
Occupancy (%)			76.2	%			72.2	%			4.0				76.6	%			73.2	%			3.4				74.6	%			68.8	%			5.8
FOUR POINTS
REVPAR ($)			77.29				69.88				10.6	%			72.74				66.48				9.4	%			86.02				76.37				12.6	%
ADR ($)			114.15				107.63				6.1	%			106.70				102.20				4.4	%			128.71				118.06				9.0	%
Occupancy (%)			67.7	%			64.9	%			2.8				68.2	%			65.0	%			3.2				66.8	%			64.7	%			2.1
ALOFT
REVPAR ($)			69.64				60.10				15.9	%			70.43				60.97				15.5	%
ADR ($)			102.24				97.91				4.4	%			103.98				99.39				4.6	%
Occupancy (%)			68.1	%			61.4	%			6.7				67.7	%			61.3	%			6.4

 

(1)	Includes same store owned, leased, managed, and franchised hotels

 

-25-

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Starwood Hotels & Resorts Worldwide, Inc.

Worldwide Hotel Results - Same Store

For the Year Ended December 31,

UNAUDITED

 

		Systemwide (1)												Company Operated (2)
		2011				2010				Variance				2011				2010				Variance
TOTAL WORLDWIDE
REVPAR ($)			114.56				104.43				9.7	%			131.42				119.43				10.0	%
ADR ($)			168.37				158.57				6.2	%			190.89				178.37				7.0	%
Occupancy (%)			68.0	%			65.9	%			2.1				68.8	%			67.0	%			1.8
NORTH AMERICA
REVPAR ($)			108.57				99.47				9.1	%			135.41				124.16				9.1	%
ADR ($)			155.11				148.45				4.5	%			186.53				177.90				4.9	%
Occupancy (%)			70.0	%			67.0	%			3.0				72.6	%			69.8	%			2.8
EUROPE
REVPAR ($)			158.05				138.40				14.2	%			175.63				153.73				14.2	%
ADR ($)			236.49				213.77				10.6	%			254.54				228.09				11.6	%
Occupancy (%)			66.8	%			64.7	%			2.1				69.0	%			67.4	%			1.6
AFRICA & MIDDLE EAST
REVPAR ($)			119.08				122.98				(3.2	%)			119.96				123.97				(3.2	%)
ADR ($)			189.46				176.65				7.3	%			191.27				178.07				7.4	%
Occupancy (%)			62.9	%			69.6	%			(6.7	)			62.7	%			69.6	%			(6.9	)
ASIA PACIFIC
REVPAR ($)			111.90				99.57				12.4	%			111.94				97.49				14.8	%
ADR ($)			169.17				157.03				7.7	%			169.01				155.73				8.5	%
Occupancy (%)			66.1	%			63.4	%			2.7				66.2	%			62.6	%			3.6
LATIN AMERICA
REVPAR ($)			94.90				82.58				14.9	%			100.48				85.61				17.4	%
ADR ($)			156.45				142.21				10.0	%			163.43				151.02				8.2	%
Occupancy (%)			60.7	%			58.1	%			2.6				61.5	%			56.7	%			4.8

 

(1)	Includes same store owned, leased, managed, and franchised hotels

(2)	Includes same store owned, leased, and managed hotels

 

-26-

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Starwood Hotels & Resorts Worldwide, Inc.

Owned Hotel Results - Same Store ⁽¹⁾

For the Year Ended December 31,

UNAUDITED

 

		WORLDWIDE												NORTH AMERICA												INTERNATIONAL
		2011				2010				Variance				2011				2010				Variance				2011				2010				Variance
TOTAL HOTELS		45 Hotels												22 Hotels												23 Hotels
REVPAR ($)			159.12				142.76				11.5	%			164.78				153.63				7.3	%			152.01				129.11				17.7	%
ADR ($)			218.65				205.49				6.4	%			215.60				207.44				3.9	%			222.95				202.64				10.0	%
Occupancy (%)			72.8	%			69.5	%			3.3				76.4	%			74.1	%			2.3				68.2	%			63.7	%			4.5
Total Revenue			1,441,343				1,317,755				9.4	%			818,949				773,562				5.9	%			622,394				544,193				14.4	%
Total Expenses			1,130,249				1,057,427				(6.9	%)			664,273				642,412				(3.4	%)			465,976				415,015				(12.3	%)
BRANDED HOTELS		40 Hotels												17 Hotels												23 Hotels
REVPAR ($)			161.94				144.11				12.4	%			171.35				158.30				8.2	%			152.01				129.11				17.7	%
ADR ($)			220.03				204.88				7.4	%			217.63				206.63				5.3	%			222.95				202.64				10.0	%
Occupancy (%)			73.6	%			70.3	%			3.3				78.7	%			76.6	%			2.1				68.2	%			63.7	%			4.5
Total Revenue			1,351,505				1,228,104				10.0	%			729,111				683,911				6.6	%			622,394				544,193				14.4	%
Total Expenses			1,053,308				979,704				(7.5	%)			587,332				564,689				(4.0	%)			465,976				415,015				(12.3	%)

 

(1)	Hotel Results exclude 6 hotels sold and 14 hotels without comparable results during 2011 & 2010

*	Revenues & Expenses above are represented in ‘000’s

 

-27-

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STARWOOD HOTELS & RESORTS WORLDWIDE, INC.

Management Fees, Franchise Fees and Other Income

For the Year Ended December 31,

UNAUDITED ($ millions)

 

		Worldwide
		2011				2010				$ Variance				% Variance
Management Fees:
Base Fees			309				270				39				14.4	%
Incentive Fees			146				139				7				5.0	%
Total Management Fees			455				409				46				11.2	%
Franchise Fees			187				161				26				16.1	%
Total Management & Franchise Fees			642				570				72				12.6	%
Other Management & Franchise Revenues (1)			130				119				11				9.2	%
Total Management & Franchise Revenues			772				689				83				12.0	%
Other			42				23				19				82.6	%
Management Fees, Franchise Fees & Other Income			814				712				102				14.3	%

 

(1)	Other Management & Franchise Revenues includes the amortization of deferred gains of approximately $87 and $81 in 2011 and 2010, respectively, resulting from the sales of hotels subject to long-term management contracts and termination fees.

 

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STARWOOD HOTELS & RESORTS WORLDWIDE, INC.

Vacation Ownership & Residential Revenues and Expenses

For the Year Ended December 31,

UNAUDITED ($ millions)

 

		2011				2010				$ Variance				% Variance
Originated Sales Revenues (1) – Vacation Ownership Sales			330				311				19				6.1	%
Other Sales and Services Revenues (2)			258				246				12				4.9	%
Deferred Revenues – Percentage of Completion			(3	)			—				(3	)			n/m
Deferred Revenues – Other (3)			(19	)			(31	)			12				38.7	%
Vacation Ownership Sales and Services Revenues			566				526				40				7.6	%
Residential Sales and Services Revenues (6)			137				12				125				n/m
Total Vacation Ownership & Residential Sales and Services Revenues			703				538				165				30.7	%
Originated Sales Expenses (4) – Vacation Ownership Sales			225				197				(28	)			(14.2	%)
Other Expenses (5)			194				188				(6	)			(3.2	%)
Deferred Expenses – Percentage of Completion			(2	)			—				2				n/m
Deferred Expenses – Other			9				14				5				35.7	%
Vacation Ownership Expenses			426				399				(27	)			(6.8	%)
Residential Expenses (6)			95				6				(89	)			n/m
Total Vacation Ownership & Residential Expenses			521				405				(116	)			(28.6	%)

 

(1)	Timeshare sales revenue originated at each sales location before deferrals of revenue for U.S. GAAP reporting purposes

(2)	Includes resort income, interest income, gain on sale of notes receivable, and miscellaneous other revenues

(3)	Includes deferral of revenue for contracts still in rescission period, contracts that do not yet meet the requirements of ASC 978-605-25 and provision for loan loss

(4)	Timeshare cost of sales and sales & marketing expenses before deferrals of sales expenses for U.S. GAAP reporting purposes

(5)	Includes resort, general and administrative, and other miscellaneous expenses

(6)	For 2011, includes $122 million of revenues and $95 million expenses associated with the St. Regis Bal Harbour residential project

Note: Deferred revenue is calculated based on the Percentage of Completion (“POC”) of the project. Deferred expenses, also based on POC, include product costs and direct sales and marketing costs only. Indirect sales and marketing costs are not deferred per ASC 978-720-25 and ASC 978-340-25.

n/m = not meaningful

 

-29-

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STARWOOD HOTELS & RESORTS WORLDWIDE, INC.

Hotels Without Comparable Results & Other Selected Items

For the Year Ended December 31, 2011

UNAUDITED ($ millions)

 

Properties without comparable results in 2011 and 2010:
Property		Location
Sheraton Steamboat Resort & Conference Center		Steamboat Springs, CO
The Westin Peachtree Plaza		Atlanta, GA
W New Orleans - French Quarter		New Orleans, LA
The Westin St. John Resort		St. John, US Virgin Islands
St. Regis Osaka		Osaka, Japan
W London		London, England
Grand Hotel - Florence		Florence, Italy
Sheraton Kauai		Koloa, HI
Atlanta Perimeter		Atlanta, GA
Hotel Alfonso		Seville, Spain
Four Points Philadelphia Airport		Philadelphia, PA
The Clarion Hotel		Millbrae, CA
Hotel Gritti Palace		Venice, Italy
Hotel Maria Cristina		San Sebastian, Spain
Properties sold or closed in 2011 and 2010:
Property		Location
W New York - The Court & Tuscany		New York, NY
St. Regis Aspen		Aspen, CO
The Westin Gaslamp Quarter		San Diego, CA
W City Center		Chicago, IL
Boston Park Plaza		Boston, MA
Hotel Bristol		Vienna, Austria

Revenues and Expenses Associated with Assets Sold or Closed in 2011 and 2010: ⁽¹⁾

 

		Q1				Q2				Q3				Q4				Full Year
Hotels Sold or Closed in 2010:
2010
Revenues		$	8			$	3			$	7			$	—			$	18
Expenses (excluding depreciation)		$	6			$	4			$	5			$	—			$	15
Hotels Sold or Closed in 2011:
2011
Revenues		$	28			$	23			$	5			$	—			$	56
Expenses (excluding depreciation)		$	28			$	19			$	4			$	—			$	51
2010
Revenues		$	26			$	40			$	37			$	37			$	140
Expenses (excluding depreciation)		$	27			$	29			$	30			$	28			$	114

 

_________________

 

(1)

Results consist of 4 hotels sold in 2011 and 1 hotel sold in 2010. These amounts are included in the revenues and expenses from owned, leased and consolidated joint venture hotels in the statements of income for 2011 and 2010. These amounts do not include revenues and expense from the W New York - Court & Tuscany which were reclassified to discontinued operations.

 

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STARWOOD HOTELS & RESORTS WORLDWIDE, INC.

Capital Expenditures

For the Three Months and Year Ended December 31, 2011

UNAUDITED ($ millions)

 

		Q4				YTD
Maintenance Capital Expenditures: (1)
Owned, Leased and Consolidated Joint Venture Hotels			47				129
Corporate/IT			36				124
Subtotal			83				253
Vacation Ownership Capital Expenditures: (2)
Net capital expenditures for inventory (excluding St.Regis Bal Harbour)			(10	)			(43	)
Net capital expenditures for inventory – St.Regis Bal Harbour			(52	)			58
Subtotal			(62	)			15
Development Capital			67				209
Total Capital Expenditures			88				477

 

(1)	Maintenance capital expenditures include improvements that extend the useful life of the asset.

(2)	Represents gross inventory capital expenditures of $33 and $165 in the three months and year ended December 31, 2011, respectively, less cost of sales of $95 and $150 in the three months and year ended December 31, 2011, respectively.

 

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Starwood Hotels & Resorts Worldwide, Inc.

2011 Divisional Hotel Inventory Summary by Ownership by Brand*

As of December 31, 2011

 

		NAD								Europe								AME								LAD								ASIA								Total
		Hotels				Rooms				Hotels				Rooms				Hotels				Rooms				Hotels				Rooms				Hotels				Rooms				Hotels				Rooms
Owned
Sheraton			6				3,528				4				705				—				—				5				2,699				2				821				17				7,753
Westin			4				2,399				3				650				—				—				3				902				1				273				11				4,224
Four Points			2				327				—				—				—				—				—				—				—				—				2				327
W			5				1,795				2				665				—				—				—				—				—				—				7				2,460
Luxury Collection			1				643				5				580				—				—				1				181				—				—				7				1,404
St. Regis			2				489				2				261				—				—				—				—				1				160				5				910
Aloft			2				272				—				—				—				—				—				—				—				—				2				272
Element			1				123				—				—				—				—				—				—				—				—				1				123
Other			7				1,929				—				—				—				—				—				—				—				—				7				1,929
Total Owned			30				11,505				16				2,861				—				—				9				3,782				4				1,254				59				19,402
Managed & UJV
Sheraton			38				26,526				41				11,927				32				8,907				15				2,942				71				25,275				197				75,577
Westin			54				28,359				12				4,110				4				1,086				3				886				27				9,396				100				43,837
Four Points			1				171				6				1,013				7				1,329				4				517				13				4,362				31				7,392
W			23				6,903				2				273				1				441				2				433				6				1,436				34				9,486
Luxury Collection			4				1,648				19				3,002				5				1,384				7				290				5				1,112				40				7,436
St. Regis			9				1,811				2				226				1				377				2				309				9				2,367				23				5,090
Le Meridien			4				607				21				6,003				31				7,282				—				—				26				7,237				82				21,129
Aloft			—				—				2				399				1				408				1				142				5				1,044				9				1,993
Other			1				773				1				165				—				—				—				—				—				—				2				938
Total Managed & UJV			134				66,798				106				27,118				82				21,214				34				5,519				162				52,229				518				172,878
Franchised
Sheraton			161				48,219				15				4,108				2				393				9				2,332				14				6,266				201				61,318
Westin			59				18,980				3				1,176				—				—				4				1,309				8				2,231				74				23,696
Four Points			105				16,590				5				835				—				—				8				1,276				8				1,441				126				20,142
Luxury Collection			8				1,629				11				1,528				—				—				2				248				8				2,260				29				5,665
St. Regis			—				—				—				—				—				—				—				—				—				—				—				—
Le Meridien			7				2,007				5				1,455				—				—				2				324				3				714				17				4,500
Aloft			41				5,965				—				—				—				—				—				—				3				471				44				6,436
Element			8				1,309				—				—				—				—				—				—				—				—				8				1,309
Total Franchised			389				94,699				39				9,102				2				393				25				5,489				44				13,383				499				123,066
Systemwide
Sheraton			205				78,273				60				16,740				34				9,300				29				7,973				87				32,362				415				144,648
Westin			117				49,738				18				5,936				4				1,086				10				3,097				36				11,900				185				71,757
Four Points			108				17,088				11				1,848				7				1,329				12				1,793				21				5,803				159				27,861
W			28				8,698				4				938				1				441				2				433				6				1,436				41				11,946
Luxury Collection			13				3,920				35				5,110				5				1,384				10				719				13				3,372				76				14,505
St. Regis			11				2,300				4				487				1				377				2				309				10				2,527				28				6,000
Le Meridien			11				2,614				26				7,458				31				7,282				2				324				29				7,951				99				25,629
Aloft			43				6,237				2				399				1				408				1				142				8				1,515				55				8,701
Element			9				1,432				—				—				—				—				—				—				—				—				9				1,432
Other			8				2,702				1				165				—				—				—				—				—				—				9				2,867
Vacation Ownership			13				6,618				—				—				—				—				1				382				—				—				14				7,000
Total Systemwide			566				179,620				161				39,081				84				21,607				69				15,172				210				66,866				1,090				322,346

 

*	Includes Vacation Ownership properties

 

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STARWOOD HOTELS & RESORTS WORLDWIDE, INC.

Vacation Ownership Inventory Pipeline

As of December 31, 2011

UNAUDITED

 

		# Resorts												# of Units (1)
Brand		Total(2)				In Operations				In Active Sales				Completed  (3)				Pre-sales/ Development  (4)				Future Capacity  (5),(6)				Total at Buildout
Sheraton			7				7				6				3,079				—				712				3,791
Westin			9				9				9				1,562				22				21				1,605
St. Regis			2				2				—				63				—				—				63
The Luxury Collection			1				1				—				6				—				—				6
Unbranded			2				2				1				99				—				1				100
Total SVO, Inc.			21				21				16				4,809				22				734				5,565
Unconsolidated Joint Ventures (UJV’s)			1				1				1				198				—				—				198
Total including UJV’s			22				22				17				5,007				22				734				5,763
Total Intervals Including UJV’s (7)															260,364				1,144				38,168				299,676

 

(1)	Lockoff units are considered as one unit for this analysis.

(2)	Includes resorts in operation, active sales or future development.

(3)	Completed units include those units that have a certificate of occupancy.

(4)	Units in Pre-sales/Development are in various stages of development (including the permitting stage), most of which are currently being offered for sale to customers.

(5)	Based on owned land and average density in existing marketplaces

(6)

Future units indicated above include planned timeshare units on land owned by the Company or applicable UJV that have received all major governmental land use approvals for the development of timeshare. There can be no assurance that such units will in fact be developed and, if developed, the time period of such development (which may be more than several years in the future). Some of the projects may require additional third-party approvals or permits for development and build out and may also be subject to legal challenges as well as a commitment of capital by the Company. The actual number of units to be constructed may be significantly lower than the number of future units indicated.

(7)	Assumes 52 intervals per unit.

 

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